Technology in 2022 is changing how both large and small businesses handle accounting.
The latest advancements in data analytics, automation, and cloud computing software for large-scale companies to single-person entrepreneurship are finally making accounting more manageable.
It has even reached the point where accounting firms don’t automatically need everyone to be busily working in the office. Instead, they can simply download Microsoft 365 Business, QuickBooks, or any number of cloud-based programs to streamline their office operations and work virtually from anywhere.
To appreciate the scope of how technology is changing accounting, check out these 5 examples.
1. Big Data Is Informing More Profitable Accounting Strategies
The name of the game in accounting, marketing, and every level of business is big data. Big data, processed by artificial intelligence-powered (AI) programs, is the all-important factor that helps companies in 2022 make crucial decisions, from budget restructuring to client relationships to ad placement.
Strategizing is possible because big data provides analytics on all types of information. It analyzes past trends in thousands of categories, including accounting, and predicts future ones. It highlights the superfluities in your budget and offers insight into where your money could be put to better, more cost-efficient use. It can even tell you which clients may provide bigger profits to your business.
Big data analytics are the key to knowing where and when to grow parts of your client’s business from an accounting perspective. That’s why most accounting software comes equipped with analytics technology to inform more profitable accounting strategies.
2. Automation Is Taking Over Tedious Accounting Processes
There is no doubt that traditional accounting is fraught with tedious processes. These processes waste valuable time and energy.
Automation is taking care of that problem. Accounting software and Microsoft 365 Business in 2022 can automate simple, time-consuming, and monotonous tasks that eat away at speed and efficiency.
Some examples of tasks that you can delegate to automation software include:
- generating financial statements and reports
- calculating complex transactions
- filling in ledgers
- scheduling office and team tasks
Keep in mind that in addition to only having to click a few buttons to start these automated processes, once they start, they typically take only seconds to produce the desired results. This speed and ease of generation saves the accountant or business owner hundreds of hours of work and makes it easier for them to succeed financially.
3. Cloud-Based Software Is Streamlining Accounting Work
In 2022, the best and easiest to use accounting software will be cloud-based.
Cloud technology revolutionizes and streamlines how businesses can conduct their accounting work. Not only are all the tools you need located in one program or suite of programs accessible from any authorized device, but you don’t have to worry about backing your data up to a hard drive. It saves instantly to the cloud, where you can easily access it anywhere through a secure internet connection.
Another benefit of cloud technology software is its flexibility, particularly for business owners and entrepreneurs who work remotely or from various locations around the world. Even in trying times, such as a global pandemic where working in public is not a safe option, you can still operate the financial end of your business as long as you’re using a program like Microsoft 365 Business that is connected to a cloud service.
4. Cloud Computing Power Is Shaving Hours Off Accounting Data Research
Technology has significantly changed how fast and easily accounting research occurs. Where once researching data took hours of poring over reams of paperwork stored in file drawers, it now takes just a few seconds and a couple of mouse clicks.
In 2022, accounting and financial data will be stored in computer databases such as Microsoft Excel, many of which are cloud-based for easy access from any location. Cloud computing power can handle immense amounts of information and pull out specific data points in a matter of seconds, making it a convenient resource for businesses when they need to perform in-depth accounting research.
5. Cloud Computing Power Is Speeding Up Accounting For Less Cost Than A Back-Office Infrastructure
Cloud computing software is fast because it is on-demand, runs on multiple servers, and has unlimited storage space. These factors make using cloud-based accounting programs a speedier alternative for businesses than buying or building an entire back-office infrastructure.
Cloud-based accounting software is also more cost-efficient because businesses only need to pay for the modules they use. The cost difference between using a cloud server vs maintaining a back-office infrastructure is stunning: the former costs an average of $400 a year, while the latter can cost up to $15,000 monthly.
This cost differential is an easy decision from a purely financial perspective: cloud-based software like Microsoft 365 Business is the superior alternative.