Technology is revolutionizing the way businesses operate across every industry. Today, the traditional business model is no longer the most effective way for a business to compete in the market. Moreover, we now have machines and robots that can carry out the same tasks as humans, and that too with greater accuracy and faster speed. Like every other industry, such technological advancements continue to transform the world of accounting and finance.
Below in this article, we discuss a few of the significant ways in which technology has transformed the financial sector:
- USE OF COMPUTERIZED ACCOUNTING SYSTEMS
Regardless of the organization’s size, most finance teams now use computerized systems to run the accounting and finance functions. These systems can tackle many of the routine accounting tasks previously performed manually, such as bookkeeping and financial statements preparation. In many cases, they can produce financial information and individual reports much quicker than a manual system and often, with greater accuracy as the chance of human error is eliminated.
As computerized systems automate many routine accounting tasks, accountant professionals now have different roles in the organization. The demand for experts is growing, giving higher-value services such as financial advisory and risk management. According to the latest surveys on accounting careers salary, such professions are some of the highest-paid today.
- PROVISION OF IMPROVED ACCOUNTING SERVICES TO CLIENTS
The use of efficient accounting software and systems has been beneficial for the professionals working in the industry. Still, it also results in improved accounting services to clients.
Several accounting firms now use cloud-based systems to streamline their processes and ensure easy access to financial information. It allows both accountants and their clients access to information at any time, from anywhere. As a result, the interaction between an accounting firm and its clients is made much more convenient and quicker.
Instead of holding meetings to share and discuss financial information, clients and accountants can access real-time data from wherever they are. They can simultaneously see, edit, and comment on financial information. It is beneficial for both parties. For the accounting firm, more efficient client communication allows them to serve existing clients better and perhaps even take on many clients. For the client, the availability of real-time information facilitates understanding of their financial position and, consequently, improves strategic decision-making.
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- GROWTH IN DEMAND FOR ONLINE BANKING
Traditionally, banking was a completely non-virtual service. Consumers would need to visit the bank to transfer funds, withdraw cash, or manage their finances. They would also need to personally meet with a bank representative to sort out their financial issues.
However, customer needs have changed drastically with time. The modern customer needs access to their bank account through their phones and computers. Which means banks no longer have to operate from a physical location to provide their services. A significant rise in demand for online banking allows customers to manage their finances at the touch of a finger.
- AVAILABILITY OF SOPHISTICATED INVESTMENT OPTIONS
Thanks to the latest technology, the financial market now offers a wide range of highly sophisticated financial products to investors. The investment options available today are more personalized than ever before to suit every kind of investor profile.
For instance, the availability of options such as equity funds provides investors with a diversified, economical, and safe way to invest in the stock markets. Moreover, the use of technology allows investors to secure online transactions and view the return on their investments in real-time, resulting in better investment decisions.
- GROWING IMPORTANCE OF CYBERSECURITY
Finance professionals become increasingly reliant on technology to perform their jobs. Cybersecurity has become an essential consideration for accounting firms and those working in the industry to store financial data. Due to the enormous amount of sensitive financial data on various software and apps, the accounting profession is more vulnerable to cyberattacks today than ever before. There is a need for a robust cybersecurity strategy that is essential for accounting and finance. It is the responsibility of finance professionals to have the necessary security measures to protect their employer’s or clients’ financial information.
How can finance professionals protect the financial data they hold? Firstly, they must choose the software or cloud systems they use carefully after a thorough evaluation of its security standards. Next, the finance team’s training about the common cybersecurity attacks and to prevent them is essential. Moreover, there should be a strong IT support team to provide support on technical issues.
THE BOTTOM LINE
Technology is constantly evolving and bringing about faster, smarter, and more economically viable ways of doing things. In the process, we are likely to see many inefficient processes and systems become obsolete. Finance people need to stay updated on their field’s latest developments if they are beneficial to their employers and advance their careers.