The era when businesses are about to be transformed by cyber-physical systems, has allowed several technological trends to develop. Any business can take advantage of this trend and should pay attention to how to use it, but accountants must evaluate how this technology can be used to achieve a company’s business strategy.
Data is critical to making business financial decisions. Data is not just numbers but also includes unstructured data which can be analyzed through natural language processing. This can enable real-time status monitoring of financial issues. Data is the fuel that drives the technological trends that are transforming the computerization of finance and the computerization of accounting. Even the audit process has been digitized. In finance, data generates valuable insights, drives results, and creates a better experience for clients.The unprecedented digitization of the world creates opportunities to gather new insights from data that went before.
Computing Power Improvement
All the data created by our digital world would be useless or at least less powerful were it not for advances in computing power. This change allows computerized accounting departments and companies to store and use data effectively. The adoption of 5G mobile network technology will become the backbone of a smarter world. When computing is fully adopted, it will be transformative in a way that is not currently predictable as it will catapult the computing power exponentially. Quantum computers will be able to provide services and solve problems that are not possible with traditional computers.
Artificial Intelligence (AI)
Artificial intelligence can help accounting and finance professionals become more productive. AI algorithms allow machines to take over time-consuming, repetitive and redundant tasks. Rather than just crunching numbers, with AI support, financial professionals will be able to spend more time providing actionable insights. More and more finance professionals rely on AI to do their best—analyzing and processing huge amounts of data and tackling monotonous tasks the more time humans will recover from doing their best.
Robots don’t have to be physical entities. In computerized accounting and finance, robotic process automation can handle repetitive and time-consuming tasks such as analysis and document processing, which abound in any accounting department. Freed from duties, accountants can spend time on strategy and consulting work. Intelligent automation is capable of imitating human interactions and can even understand the meanings inferred in client communications.
A distributed ledger or blockchain is a highly secure database. It is a way to securely store and record data, which has wide computerized applications in accounting and financial records. Blockchain enables smart contracts, protects and transfers ownership of assets, verifies people’s identities and credentials, and much more. Once blockchain is adopted, it will benefit businesses by reducing costs, increasing traceability and increasing security.