Finance and Accounting Technology Trends: The future of finance and accounting is going to be greatly affected by technological changes. The implications of these are significant, and enterprises that do not consider these implications carefully and plan for them may be left behind their competitors. As such, CFOs and CIOs must look to these changes today, and not wait until changes are forced on them in the future. When changes are made as they come about, instead of putting them off, a business is able to stay as up-to-date as possible. This reduces the chance of being left behind competitors and keeps the customer base strong.
Cloud Based Technology
The biggest change to come to finance and accounting today is cloud based technology. While the cloud has been used for some time for other types of businesses and applications, it has only recently seen wide usage when it comes to finance and accounting businesses. The reasons behind this are mostly based on the fear that sensitive numerical data would be leaked to others, and that the cloud was not secure. However, continued innovations have made the cloud an excellent choice for storage of financial and accounting data, and it is often more protected than private storage servers at financial companies.
The Digitizing of Financial Data
Financial data is going digital, and that is allowing CIOs and CFOs to work with it in ways that they may not have thought possible in the past. By making things digital, there are no more cumbersome books and
Some accounting tasks can be tedious, and when there is a lot of tedium and repetition, there is a higher level of room for error. By automating a number of more mundane accounting tasks, the chance of a mistake being made drops drastically.
spreadsheets that have to be carried around. Files can be transferred and accessed in the blink of an eye, making all of the management of a large company party to everything they should have access to. They can truly work together that way, to improve all that the company already has to offer. When working with large client companies on a global scale, a financial or accounting enterprise must be able to demonstrate speed, accuracy, and proficiency. Digitized data can make that much easier than ever before.
Automating Accounting Tasks
Some accounting tasks can be tedious, and when there is a lot of tedium and repetition, there is a higher level of room for error. By automating a number of more mundane accounting tasks, the chance of a mistake being made drops drastically. That is excellent news for enterprises that are charged with the duty of getting things right, and can also take pressure off of accountants who can turn their attention to more complex issues that have to be addressed. With that in mind, not every accounting task can be automated, and care should be taken to know when a human touch is the most valuable way of taking care of a particular client or a specific piece of data.
Algorithms and Data Sets
With the right algorithms, data sets can be compared, studied, broken down, put together, re-examined in a different light, and used to their fullest potential. Doing those types of tasks by hand can seem insurmountable, especially if there are large amounts of data. By the time a human being could make all the analysis of a very large data set, the information gathered from that analysis may no longer be useful to the CIO or the CFO of the company. But technology makes everything faster, and the proper algorithms could perform the analysis in a fraction of the time it would take a human being to do the same thing. That is one way that companies can extract information from their data sets and stay on top of the competition.
The Competitive Marketplace
The marketplace in the B2B sector is highly competitive, and finance and accounting technologies are a big part of that equation. As the marketplace becomes even more competitive and more technologically advanced in the future, CIOs and CFOs who do not stay up with the latest changes may find themselves and their companies floundering. Competition has always been a big part of business, but never have the stakes been so high. With the rapid growth of technology and all of the changes that can be made because of it, companies that want to stay in business must do what it takes to keep their competitive edge. In a world full of technology, that technology must be fully embraced.
Accuracy and Validation
One of the main benefits of technological advances for finance and accounting businesses, and for accounting and finance departments of other large companies, is the level of accuracy and validation that can be found. With more automated tasks and algorithms that can check and recheck numbers, input, and changes, it is more likely than ever before that a mistake will be avoided or caught before it has any chance to become a problem. That doesn’t mean that a CIO or a CFO can relax and let the computer handle it, though. Care still needs to be taken to use the technology correctly, so it can do its job in making sure that the right financial and accounting information is provided and available.
Refining Forecasts for Future Decisions
Another important aspect of technological advancements for finance and accounting is that forecasts can be refined faster and more easily. That allows for future decisions to be made with all the data
Forecasting requires some level of assumption by default, but the more information that is available with which to make that forecast, the more accurate the forecast is likely to be.
that is really needed to make them. This can help reduce the chance of guesswork and can make it easier for companies to plan ahead. Forecasting requires some level of assumption by default, but the more information that is available with which to make that forecast, the more accurate the forecast is likely to be. That is significant for CIOs and CFOs, as some of the more long-range forecasts can lose accuracy over time without strong financial information on which they can be based.
Helping to Ensure Compliance
Compliance matters, especially in financial and accounting transactions. Even an honest mistake can cause a high level of trouble for a business that provides information to others on which the decisions of those others are based. A company would never want to misrepresent something, but human beings can and do make mistakes and errors in judgment. With cloud-based finance and accounting technology, much of the chance for making these types of errors disappears. CIOs and CFOs that use this technology are protecting their companies and taking actionable steps to reduce the chances of something going wrong on a monetary level.
What Happens Now?
For CIOs and CFOs, the decision is whether to use the new technology or not. If they fail to do so, they and their companies will likely be left behind, since there are many other companies that will embrace the new technology and use it to its fullest extent. The B2B customers of these companies will see that, and will generally work with the companies who are up-to-date on the latest technological advances. In order to stay relevant in a fast-paced and rapidly changing financial and accounting world, taking charge of cloud based technology options and understanding their implications will be a vital part of continued advancement for a CIO or a CFO. The future of their companies may depend on the technological choices they make.