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How has Technology impacted the accountancy industry?

In this digital age, new ground-breaking inventions are being created every day. This is no different with the accounting profession, where new inventions, technologies and equipment are intrinsic to the role of a modern accountant.

These days, you’ll certainly be hard pressed to find any accountants using just a pen, paper and calculator to do the books. If you’re interested in learning about how technology has impacted the accounting industry, we have Manchester accountants, Alexander & Co here to discuss some of these ways.

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Reducing the margin for error with accounting tools

It’s fair to say that word processing tools have dramatically improved accounting accuracy. In doing so, tools like this have reduced the margin for error. While some accountants do still use Excel for data entry, most companies will use high tech accounting software that allows simplified data entry that can make it a near guarantee that reports are accurate.

This is particularly beneficial for business errors which can lead to uninformed decisions and tax penalties. Data entry software essentially means accountants are better equipped to help businesses stay afloat.

More time available to advice on business strategies

With software programs, the need for basic accounting training has declined. An accountant who has access to the right systems can perform statistical analysis, tax preparation services and many other tasks much more efficiently without the need of years and years of core training.

Accountants are not just number crunchers like they are perceived to be. The modern accountant has a diverse role and have become part of many businesses strategic planning team. Now, many accountants are developing new processes, giving advice and basically performing the tasks that computers can’t.

Accountants need IT skills as well as other business skills

In addition to being knowledgeable in accounting practices and being a skilled communicator, accountants also need to be able to apply their skills and integrate them with IT programs. While some professionals are not quite up to date with all systems, all professionals in the field will have to be able to merge IT and accounting.

What will the next 10 years look like?

With so much evolving technology in just the last 10 years, what will be the forecast for the next 10? We can expect the following:

  • In regards to information, we will have more readiness and access for the client.
  • A definitive change in the accountant role as a compiler of information, process and business adviser
  • More support for client in regards to tax matters, business processes and book entries
  • A vast decrease in paper
  • Transformation of book keeping

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