The best way to predict the future is to create it_P. Drucker & A. Lincoln
It’s nearly the end of 2024 and the world is experiencing a huge technological revolution. Machine-based automation, Artificial Intelligence (AI), and cloud computing.
Do you think it’s the future of your Accounting and Finance business?
It is indeed!
All of the technological advancements are contributing to nearly every business sector including Accounting and payroll. With the ever-increasing financial transactions and data entries, machine-based algorithms prove to be highly beneficial. Let’s get insights into the current and future trends in your accounting and business solutions in Mississauga Ontario.
CURRENT STATE OF ACCOUNTING IN CANADA:
- Accounting is a highly in-demand profession in Canada right now and is likely to be higher in the future with at least 3000 new job openings each year.
- In Canada, accountants are basically more involved in providing tax audits, financial reporting, tax planning, and other financial services to their clients.
- Bookkeeping is mostly done traditionally using manual practices, Excel spreadsheets, and paper-based documentation.
- The accounting industry in Canada is comprised of various sectors, including public accounting firms, corporate accounting departments, and government agencies.
- Accounting professionals are required to stay up-to-date with the changing rules and laws.
IS THERE A WAY TO TACKLE CHALLENGES FACED BY THE ACCOUNTING INDUSTRY?
Currently, the accounting industry is facing some challenges that can be resolved with effective strategies. The most commonly observed challenges are:
- Risked accuracy due to loads of financial transactions.
- Errors and inaccuracy due to manual/paper-based documentation.
- Difficulty managing high volumes of data.
- Staying up-to-date with tax regulations and legal compliance.
- Demand for real-time financial data and analysis from clients.
How can these challenges be resolved? Well, the technical advancements we mentioned earlier are one of the best ways to tackle each of the challenges faced by the accounting industries in Canada right now.
They help you:
- Get access to real-time client data and financial records.
- Enhanced efficiency and accuracy.
- Increased communication channels lead to better understanding.
- Compliance with the updated rules and regulations.
These key points might have given you a gist of what sort of challenges are being faced in the Canadian accounting industry and how can technology play its role in helping you tackle them.
Keep reading to learn the predictable future trends and advancements leading to improvement in the industry.
KEY TECHNICAL ADVANCEMENTS IN THE ACCOUNTING INDUSTRY:
As of now, we’ve witnessed a lot of ongoing technological advancements which are providing a great benefit to the industry. Major advancements are:
- Increased automation:
Automation refers to a wide range of technologies that reduce human interaction in processes, primarily by predetermining decision criteria, subprocess linkages, and related actions and enforcing those predeterminations through machines.
Referring to this tremendous technological advancement, Robotic Process Automation has gained significant importance. Accountants use it for enormous data entry tasks, generating tasks, and other repetitive tasks.
One thing to add is, that automation doesn’t mean human dependency is totally lost. Accountants must now grasp and interpret data more thoroughly, especially when drawing broad conclusions from it. Furthermore, accountants require access to modern cloud-based technology that will allow them to take advantage of accessible data to get insights, record transactions, handle tax payments, and verify that the organization in question is operating at peak financial efficiency.
- Data analytics & Artificial Intelligence (AI):
All businesses have now access to top-notch AI tools that they can use to enhance their working experience.
Now, there’s no need to worry about how to incorporate your new data into pre-existing data, make plans based on data analysis, and many more.
It helps you focus on the thinking tasks more helping you out with the manual tasks. Such as data entry has now been a lot easier and faster with these tools and you can focus more on its interpretation rather than the entry.
You can also create customizable reports based on the input queries.
It can help you handle your invoicing and payment procedures automatically.
- Cloud-based accounting software:
Cloud-based accounting has made paper-based records dead a long ago and it still continues to evolve.
This is the major and most beneficial technological advancement of this era. If handled properly, it can help you access and handle your data from anywhere anytime with utmost security and consideration.
It helps you store and access your data from remote servers, totally reducing the need for physical storage.
You can also manage the access to your valuable data, who can or cannot access it, and how it can be used. It maintains the confidentiality and trust with your client and your service.
- Cash flow management:
There are over 1.19 million small businesses in Canada. And it is to say that these small businesses are generating the Canadian economy because statistics say 98% of businesses in Canada have less than 100 employees.
What does it mean?
It means that most of the businesses are surely small businesses.
However, it is noticed that nearly half of these businesses get late payments even after the due dates. The good news is when businesses work with an accounting advisor, it helps them implement new cash flow management technologies and maintain accurate cash flow forecasts. This way, businesses can better plan for the long term, make investments to develop their business, or employ staff to support growth.
- Blockchain technology:
Blockchain technology is an advanced database mechanism that allows transparent information sharing within a business network. A blockchain database stores data in blocks that are linked together in a chain.
It helps the accountants and auditors access clear database records without any hassle. You can assess smart contracts for your business using this technology. It will directly automate several steps making it easier for you to handle such as invoice generation, deadline alerts, making payments, etc without any risk of error.
WHAT TO DO NEXT?
The technical advancements and the evolution of approach towards accounting business might have made you think, what to do next?
Well, adopting these ever-growing trends is a wise decision to excel in your field and take your business to new heights. As the world progresses, businesses should too.
KEY TAKEAWAYS:
The accounting and finance industry is undergoing a massive transformation with the adoption of automation, AI, and cloud computing, significantly enhancing efficiency, accuracy, and data handling capabilities.
New technologies assist businesses, especially small ones, in managing cash flow more effectively, helping them plan for growth, manage late payments, and create accurate forecasts.
As technological advancements continue to shape the industry, adopting these trends will be essential for businesses to stay competitive and efficient.
For more insights, explore our blog on the Benefits of Bookkeeping for Small Businesses and learn How to Become a Certified Bookkeeper: A Complete Guide.
Want us to help you with your finances? Book your consultation slot now and let us give you a glimpse of our affordable accounting solutions near Mississauga.