Technological change and demanding customers have ensured that accountants need to adopt an innovative approach to create value for their clients. Of late, the accounting industry has witnessed a tectonic shift in the way it has been operating, thanks to the evolution of web-enabled communication, mobility and the cloud. Here are 5 trends disrupting the industry.
Big Data and Analytics
Poor data quality and non-reliability of records are the key challenges faced by accountants. However, today, through Big Data and analytics accountants not only get access to quality data but also visualise things from a broader perspective allowing them to predict the future needs of their clients. Big Data and analytics have helped accountants to move from the role of traditional accounting to strategic business partners. Accountants can meet the cost of setting up a big data analytics practice in their firm with a Loan for a Chartered Accountant.
AI and Automation
As per a survey conducted by Censuswide, commissioned by BlackLine (an accounting software automation provider), 78% financial professionals said that technology would play a very significant role in their department. 33% of these professionals believed that AI tools would take key financial decisions. Indeed, AI and automation are a giant step in the accounting profession as through automatic data processing, accountants are relieved of manual entry of data, thereby, bringing down chances of errors. According to KPMG's Rise of the Robots report, robotic process automation can cut costs for financial services organizations by up to 75%.
Cloud Accounting Software
Many accountants have embraced cloud accounting software into their practice driven by its simplified IT infrastructure, agility, mobility and greater cost benefits. Through this software, accountants can:
- Get an instant review of customer data and information
- View financial data of clients from anywhere
- Process accounting data
- Overcome problems of server outrages and high IT costs
Depending on the features, such software can cost Rs. 7 to 10 lakh, the funds for which can be procured through a chartered accountant loan.
Data Security
As per Kaspersky Lab, a cyber-attack can cost an enterprise more than US$ 2.5 million. With accountants holding client-sensitive data, adopting best practices in data security has gained significant traction of the year. Hence, the industry is increasingly focusing on robust cybersecurity solutions. While individual accountants are using genuine software and investing in solutions like firewall and anti-virus costing approximately Rs. 28,000, big firms are implementing cybersecurity infrastructure, the running cost of which can be over Rs. 2.5 lakh per annum.
Specialization
The shifting preference of customers warrants accountants to come up with specialized and customized packages to their clients. With organizations wanting to pay only for the services they need, accountants have a make adjustments to their pricing strategy and service package. Today, organizations want personalized services from accountants.
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