Will Accounting Automation Become A Reality?

"Automation is no longer just a problem for people in manufacturing. Manual labor is being replaced by robots. Intelligent labor is being replaced by AI and software.” Andrew Yang

The above quote from an American entrepreneur and lawyer speaks volumes about the increasing penetration of automation across all industries. Like other professions, the accounting profession is feeling automation fever. While many see automation as a threat, others are not afraid to experiment with evolving technology. Before we dig into the details, let's take a look at what exactly automation is.

What is automation? 
According to author Bill Sapsis, “Automation refers to the mechanization and mechanization of movement tasks or operations that require accuracy, safety, reproducibility, or that are difficult or impossible to achieve through direct human intervention or all of the above.” The name actually comes from the Greek word ``automats,'' meaning automatic. It was only with advances in computer technology that the definition of automation expanded. accounting automation

We all know how important accounting is for every business, regardless of size. Accounting services are required to accurately measure financial performance. Any accounting error ultimately affects many people involved in the company: investors, lenders, management, employees, and perhaps more. Important business decisions, such as mergers and investments, are made based on a company's financial performance. Therefore, possible inaccuracies caused by human fatigue are not tolerated. Automation not only saves time in bookkeeping, creating reports, and recording transactions, but it also allows for a high level of accuracy. Ironically, many accountants rely heavily on spreadsheets. They are hesitant to switch to new technology for fear of the long learning curve.

Key areas of automation in accounting

The three main areas of automation in accounting are:
data entry
and analysis
Performing audit functions

Businesses may no longer need accountants for tax preparation, which typically requires a lot of data processing. 99% of these tasks will soon be automated. Automated accounting systems have already been developed. They represent countless accounting firms around the world.

Some business intelligence-based reporting tools can automatically create beautiful reports with charts, graphs, and other features. Not only is it affordable, but it also has an easy-to-understand interface, making it suitable for small and medium-sized accounting firms. Some products can also seamlessly integrate with popular ERPs to retrieve data from databases.

Accounting automation is becoming a reality. The time has come for accounting professionals to prepare for a transition from their existing roles. You should expect a more analytical role. Accounting firms must harness the power of technology to survive. While automation is likely to disrupt the careers of countless accounting professionals involved in traditional transactional work, demand for more highly skilled financial planning and analysis roles will increase.

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