The new generation of accounting technologies
Technology has long changed how business is done across borders, event that cannot be overlooked by accounting professionals and firms. And it is not only the fact of adapting to the changing context and to be in tune with new trends or offer better services. Adapting is necessary in order companies to survive.
According to KPMG consultancy, these technological changes are reflected in many ways across the transition from paper to digital accounting, in the implementation of external interfaces and systems and in the optimization of processes.
Moreover, it is ensured that customers progressively require “instant and updated information”. Something that this is only possible thanks to the evolution of technology in information processing. According to the KPMG’s Digitalization in Accounting report, digitalization in accounting areas allow improved data quality and consistency, accelerated process of reporting, improved focus on process, a broader range of services, an increase in the number of qualified employees and more outsourced work with external service providers.
Data management: Key areas
Financial Audit: It is, perhaps, one of the professional accounting services that makes the greatest use of technology today. By incorporating technology for data management, it is possible to provide audit evidence on a greater volume of data, without assuming a greater need for resources, on a very high level of liability, in addition to accessing relevant information, achieving efficiency in risk management and accessing indicators that show trends in financial reports.
Commercial management: Allows access to customers’ demands and competitors’ strategies in real time for decision making.
Tax area: is the area that can take the most advantage of data processing tools. State administrations were able to increase tax audits with improved results in a shorter period of time, to know trends on taxpayers’ behavior and to have information available to carry out public policies. On the other hand, companies can be up to date with their tax obligations in a more automated and low-risk way
According to 2020 survey by Sage, 44% of accounting firms use advanced predictive analytics that leverage big data or planned to do so in the next year period.
The AIC (Inter-American Accounting Association) stands out that these latest tools are highly necessary to incorporate in order to meet the highest expectations from clients and markets all over the world. Besides, the association enhances the fact that accounting areas must be trained in the use of these technologies for them to ride the “wave of changes caused by the three V’s – Velocity, Variety, Volume – of information”.Another survey, the one conducted by the Institute of Administrative Accountants, found that 67% of accounting firms have implemented big data or plan to do so.
Data analytics enables accounting professionals to deliver higher quality services, give clients a broader and deeper perspective on financial operations, provide more accurate forecast of future market and industry trends, automate routine tasks to improve accounting accuracy, and reduce costs.
Accounting firms today are increasingly integrating Big Data with advanced technologies such as Blockchain, Artificial Intelligence, Machine Learning and Data Analysis. The AIC report states that:
- Big Data combined with Data Analysis allows to identify patterns of fraud or atypical transactions.
- Big Data plus Data Analysis and Artificial Intelligence, allows to analyze Financial and Accounting Risk Management.
- Big Data plus predictive analytics allows to predict future risks and advising the organization on measures to mitigate damage.
- Big Data combined with Artificial Intelligence allows to elaborate more accurate predictions.
Platforms such as Conciliac EDM, are ideal and proven tools by industry leaders in this segment globally such as Deloitte, KPMG and American Express for centralized data management. As a data management platform, it allows to automate and standardize processes of integration, consolidation, reconciliation, cleaning and standardization of data among its most outstanding tools.