What’s New in Technology

What Does the Metaverse Mean for Businesses

Metaverse has become a buzzword with much debate on its potential implications once it is fully realized. As far as businesses are concerned, the metaverse presents new opportunities and challenges, especially for marketing, branding and communication professionals.

Understanding Metaverse

Metaverse became a hot topic thanks to Facebook announcing its rebrand to Meta in October 2021. However, the metaverse is not new and can be traced back to 1992 in the fiction novel “Snow Crash” by Neal Stephenson. Stephenson used the term to refer to a virtual world where people can do different activities.

As the internet moves to a new iteration as Web 3.0, different players are working toward creating their metaverse – or rather, a unified virtual space. This virtual environment is intended to be used to carry out activities such as playing games, attending meetings, buying digital goods and services, tourism, education and even for work.

Although metaverse might seem like a futuristic notion that will require massively advanced technologies, its foundational elements are already in place. This is because it’s enabled by virtual reality (VR) and augmented reality (AR). Some users, especially gamers, have had experiences with virtual reality and augmented technologies. Some online retailers already use augmented reality on their e-commerce platforms to help shoppers experience a product before ordering it.

However, metaverse technology seeks to connect all of these separate apps and platforms to create a continuous experience that will integrate audiences and elements from different platforms into one. The metaverse will be characterized by a boundless and decentralized virtual economy and immersive social experiences.

It is not possible yet to gauge how disruptive the metaverse will be, but one sure thing is that it will introduce new ways of doing things. As has already been witnessed, to keep up with trends, businesses had to adapt to technologies such as social media platforms even when they were initially created for social interaction. Hence, businesses need to be prepared.

Metaverse in Business

As any new technology helps early adopters gain a significant advantage over competitors, metaverse will be no different. However, it may initially favor large businesses that can afford to take risks and have budgets to invest in enabling requirements. Despite this, different-sized businesses should get ready to adjust their marketing strategies to the virtual economy.

$1 trillion. Hence, the metaverse has a massive business opportunity, including advertising, demand for new hardware, virtual events, e-commerce, etc.

As an example of the readiness for companies to adopt metaverse, consider Nike. The brand has already taken steps into the metaverse by filing for trademark applications, indicating its intention to make and sell virtual branded sneakers and apparel.

Businesses will benefit differently from the metaverse. For instance, companies manufacturing computer chips and servers stand a good chance for a significant gain to their businesses. So will cloud service providers that will be vital for the metaverse virtual worlds.

Manufacturers also will use the metaverse to create digital models of their products using digital twins technology (a virtual representation of a physical object or process). This will help adjust manufacturing processes, carry out quality control, product demos, and simulate the supply chain.

Remote work that was highly adopted due to the recent pandemic will be enhanced by the metaverse. It will be possible to have co-working spaces and carry out virtual trainings and simulations.

It also will help promote physical businesses. By interacting with objects in 3D form, shoppers can try on clothes online, check out houses, cars, etc. The ability to shop virtually means that businesses can design brands to suit different customer needs and increase retail sales.

Such possibilities mean that marketers will need to research customer behavior and preferences in the virtual space. This will require businesses to set up metaverse teams if they want to remain competitive. This is especially necessary to reach customers where they spend their time.

On the downside, there are concerns about privacy issues and data harvesting – like any other technology. The decentralized characteristic of a true metaverse also means it will be challenging to regulate. Such cases introduce risks to businesses. Nevertheless, such risks have never stopped businesses from adopting new technologies.

Conclusion

Customer experience is vital in any business. For businesses to continue maintaining long-term relationships with customers, they may have to adapt and use virtual avatars to serve as customer service agents. Thus, businesses need to be more innovative to tie existing communication channels to the metaverse channel. They can do this by formulating an entry plan to the metaverse while ensuring a balance between opportunities and risks.

Importance of Cloud Accounting Certification

Certifications are not a new thing in the accounting industry. However, with new technology trends, accounting departments are faced with the challenge of taking courses in technology in order to carry out their tasks. Many businesses are ditching desktop-based accounting software and turning to cloud-based software. This requires that the users be well-versed with necessary skills to use the cloud accounting solution.

What is Cloud Accounting?

Among the cloud-based solutions that businesses have adapted is cloud accounting. Cloud accounting has all the functionalities of desktop accounting. However, in cloud accounting all processes are carried out online where the data is stored on cloud servers.

Cloud accounting offers businesses various benefits, such as the ability to access the system anytime and from anywhere as long as there is internet access. It also offers access to real-time information, online payments, latest software versions, easier compliance and scalability, among others. At the same time, cloud accounting solutions also allow remote working.

As businesses strive to gain from the benefits offered by cloud accounting solutions, a new challenge arises: lack of skilled employees. Hence the need to upskill.

Why it is Important to Have Cloud Accounting Certification

As cloud accounting becomes highly adopted, there is no doubt that there will be an increase in demand for certification for individuals as well as for organizations.

For individuals, this is important as it will indicate they have the competence to use the cloud accounting software. This is an added advantage to retaining a job or for individuals looking to take up jobs in the accounting field. Employers also could look for certification as proof that an employee already has skills on the type of cloud systems the business uses.

A certified employee will be able to set up the initial business data on a cloud accounting system. They also will know how to handle daily transactions online such as payments, receipts, and invoices, among other tasks. Other important transactions handled by cloud accounting solutions include bank reconciliations, reporting, payroll administration, and budgeting.

Since cloud accounting uses advanced technology like artificial intelligence, the employees will acquire more advanced skills, including financial analysis and cash flow forecasting.

Certified employees will have a better understanding of security levels in the cloud, considering that security is one of the most important issues to businesses.

Apart from learning new skills, certification will enhance workplace performance, as users will be required to complete courses and exams before getting certified.

Again, employees who upskill are less likely to worry about being replaced and, in any case, new knowledge gives employees a chance to negotiate higher pay.

When it comes to businesses, having certified employees means that they can handle projects or tasks successfully as they have a common understanding of cloud accounting systems. This ensures a business of efficiency and reduced operational costs as it can implement a standardized system. Furthermore, customers prefer working with qualified professionals – and this can be demonstrated through certification.

Since cloud computing is a core competency for businesses today, a certification is not only suitable for bookkeepers and accountants, but also for business owners, managers, CFOs and anyone who will be using cloud accounting solutions.

And with trends such as remote accounting and cloud-based accounting services, the certification helps to become future-ready.

Conclusion

The benefits offered by cloud accounting promise to transform the accounting industry through bookkeeping efficiency and streamlined financial administration, as well as provide real-time information. However, the success of these cloud-based systems depends on the users having the appropriate skills. As new technologies emerge, there is a fear of been replaced. But by upskilling, businesses can attend to clients while employees not only get to retain their jobs, but also offer more value.

2022 Technology Trends for The Accounting Industry

Technology has had a major impact on the accounting industry. Gone are days when technology was a second thought and accountants preferred the traditional methods to which they were accustomed. As we start another year, technology is also progressing rapidly. The recent business disruption by the COVID-19 pandemic also has contributed to the acceleration in tech adoption. A major lesson learned from the events of the past two years is the need for digital transformation and prioritizing technologies that will help businesses remain relevant.

Since the accounting industry plays a crucial role in running businesses, it is important to be aware of relevant technologies that will impact their future work.

Remote Accounting

Remote work is picking up, and accountants have not been left behind. This creates a need for the accounting department to rethink their workflow and optimize hybrid arrangements that combine working in the office and remote work. Embracing hybrid arrangements will help avoid losing employees and enable access to a pool of employees with specialized skills as they can work from anywhere.

Cloud-Based Accounting Services

Cloud-based accounting solutions have enabled accounting services to be provided virtually. This has grown exponentially with the COVID-19 pandemic. Software solution providers are expected to continue developing innovative solutions that will enable remote accounting.

The need for cloud-based accounting services also will be heightened as more businesses seek to cut operational costs. With cloud-based solutions, they can pay for only what they use and not necessarily make heavy investments.

Increased Automation of Accounting Tasks

Automating accounting tasks has helped replace many time-consuming aspects of an accountant’s daily work. It is expected that more tasks beyond just data entry and calculations will be automated. As more accountants realize the benefits of automation, such as reducing errors in payments, ease of invoicing, less ambiguity, enabling compliance, etc., providers will develop more automated solutions.

millions of people quitting their jobs or leaving the workforce entirely. Such occurrences will increase robotic process automation (RPA) to include more efficient automation for critical functions such as payroll, purchases, invoices and payments.

Cryptocurrency and Blockchain Technologies

Although cryptocurrency and blockchain technologies have been around for a while, they are still difficult for most to figure out. However, there is an increased uptake of these technologies. Some countries already have allowed cryptocurrency as a legal transaction currency. As this trend continues to grow, accountants and auditors are tasked to understand these technologies so that they can offer sophisticated service to their firms or clients who invest in cryptocurrencies.

In other areas, blockchain technologies will continue being utilized in validation services such as audit and risk analysis, and balancing and sustaining accounting records.

Advanced Artificial Intelligence (AI) and Machine Learning

According to a CNBC TEC survey, 90 percent of executives surveyed agreed that machine learning is critical for companies in 2022, with 20 percent saying they would be willing to invest money in this technology.

There will be more adoption of sophisticated AI solutions that offer better insights, help make data-driven decisions, and carry out basic tasks that take up a lot of an accountant’s time.

Machine learning will be used to develop algorithms that learn patterns in accounting tasks to help reduce mistakes early and avoid wasting time looking for errors. It also will be useful for audits and predictive analytics to forecast future trends.

Although AI and ML may not work well in areas that require creativity and intuition, they can help aid decision-making.

Data Security

All the advanced technologies mentioned above offer promising benefits. However, they also present a new problem in data security. For instance, remote accounting adds a vulnerability that allows cybercriminals to gain access to a company network. Considering that the accounting department holds crucial financial data that attackers target, security is critical for any business.

With cybercriminals using advanced technologies such as artificial intelligence, it is now more important than ever to harden access to corporate data. Therefore, there will be more defensive cybersecurity services to handle the rise in security issues that come with technology growth.

Conclusion

As we forge ahead in the new year, one thing is certain: Technology will continue to be a main driver in the accounting industry. This creates a need for upskilling to evolve with new accounting roles. It also helps to be conversant with technologies that will help meet client demands.

Considerations When Automating Accounts Payables

Accounts payables (AP) is a process in the financial department that can be inconsistent and burdensome. However, today’s workforce has driven AP transformation – especially with remote working. Some businesses do not have much choice but to accept automation while others may have realized the need to automate accounts payables due to the numerous benefits that come with it.

Before hastily choosing automation, it’s important to make some careful considerations to avoid mistakes that come with the improper implementation of any business accounting technology. Here are a few guiding considerations:

What is the cost-benefit analysis? Any new system comes with its expenses and as such, it is important to measure its return on investment (ROI). This can be calculated using the expected benefits. By conducting a cost-benefit analysis, it will help you know how long it will take for an investment to pay for itself and help in the investment approval for businesses with senior decision-makers.
Understand and document the existing AP processes: Before settling on an automation solution, it is best to first fully understand the existing process. You must examine the format that invoices are received on, how they are numbered, where they are sent for approval and how they are recorded. Carrying out this documentation will help to identify the major pain points of the AP process that you would like to improve, such as manual data entry, missing invoices, discrepancies and more.
Understanding the existing process also helps in selecting the best solution that will not destabilize your entire workflow.
Processing Historical Documents: Consider what to do with invoices that already exist in employee workstations or shared drives as they need to be moved to the new system’s repository. Having these documents stored in a central location in an indexed manner helps to ease their retrieval – especially during an audit.
Types of the Available Solution: There are many available solutions, both cloud-based and premise-based. Some of them are ready-to-use, while others can be customized. Each of these solutions comes with varying modules and functionalities. This requires that you carry out thorough research from different AP automation solution providers. Some important features to look for include those that integrate with existing ERP or finance systems; are customizable, flexible and can scale as your business grows; include security features; use the latest technology such as artificial intelligence; and produce reports.
Engage with a Vendor: After selecting several vendors whose solution sounds like a good fit, the next step is to request a discovery call or demo. At this time, the vendor should review your business AP processes and integration issues. This will help to find a vendor that can meet your specific requirements.
Metrics: Have in place measures that will be used to check whether the AP automation meets the expected benefits. Some of the key performance indicators (KPIs) that should be tracked include time spent on each invoice, time taken to approve invoices, cost per invoice and number of payment errors.
Change Management: It may be easy to install a new AP solution, but its success is dependent on proper change management. As happens every time new technology is implemented, users can be resistant when they are used to doing things a certain way. There are also fears of losing jobs or being replaced by technology. Hence, the users must be involved in the change process. If users resist, even investing in the best solution will not help. Users need to understand that automating the AP process will give them time to shift to higher-value work. They need to understand the advanced workflows and adjust to their roles under the new automated solution.

Bottom Line

To find the best solution, you should prioritize the most crucial needs for your business. The major needs are accuracy, security, customization, integration with existing systems, data transparency and saving time.

Remember, automation does not automatically solve all your accounts payable problems. You need to first ensure that your AP process is optimized, as automation adds value to streamline processes.

Why you should automate your accounts payables

Accounts payable (AP) is a crucial function to any business, as errors in the process put a company in problems. Although many businesses still use manual methods as they find the system to work fine, it requires a lot of precision from the accounts payable team. There are better – and more efficient – ways to manage AP through automation.

Challenges of the Process

An AP team is responsible for receiving invoices, reviewing invoices, approving invoices, and paying suppliers and vendors. Some AP departments also handle other functions, depending on the nature of the business. However, AP can be a time-consuming, strenuous and paper-intensive process.

An AP team helps a business control costs, maintain a good supplier relationship and analyze spending. Various challenges might indicate that your business is using outdated practices. Such challenges might include:

Dealing with double payments
Difficulties in tracking invoices, especially when your business has many transactions
Forgotten payments
Fraud
Disappearing invoices
Missing purchase orders
Poor business reputation as suppliers lose trust in your business
Negative cash flow
Too much paperwork taking up employees’ time to sort and organize
Skipped processes
Manual processes that result in errors and delays

late payments cost small businesses $3 trillion per year, which means your late payments create a domino effect. Your business will also be subjected to late payment fines.

To avoid the challenges mentioned above, you should automate the accounts payable process.

Accounts Payable Automation

Automation removes slow and repetitive manual tasks and lets you digitally submit and approve purchase orders and invoices.

However, when making any investment, businesses are more concerned about the return on investment (RIO). Rest assured that through automation, you can achieve ROI through reduced employment costs, fewer late fees, savings on invoice processing costs, and reduced losses caused by errors, among other non-financial benefits.

Following are the benefits achieved by streamlining the accounts payable workflow through automation:

Get a more accurate picture of your finances – using automation software gives you access to reporting capability that makes it is easy to get a quick overview of business spending.
Have a better command over cash flow – manage cash better with the help of reports that can be created and reviewed in real-time, which improves AP team visibility and forecasting. Automation will help in invoice prioritization as well.
Improve user productivity – employees do not have to waste time sorting documents. With the data centrally stored, employees only need to run a query to find the necessary invoice or purchase order.
Enable remote work – using cloud-based software makes remote access possible and enables approvals to be done remotely.
Auditing is easy – all data is stored in a central database and can be easily accessed.
Cost-effective – it enables timely payments and helps avoid unnecessary penalties and interest fees.
Reduce overhead staff costs – automation will help reduce the accounts payable team, with no need to hire more staff even when a business grows.
Dashboard and analytics tools – allow access to separate dashboards for the team and approvers, each using individual login credentials. At the same time, analytics gives a quick overview of the whole process.
No manual data entry – scan documents to capture data and avoid manual data entry.
Standardized accounts payable workflow – ensures consistency even if your business has different teams responsible for handling the invoicing data.
Payment reminders – set your system to have reminders when pay dates are near. This will help avoid late or forgotten payments.
Qualify for discounts – with a smooth workflow, the accounts payable cycle will require less time, and you may qualify for discounts from suppliers for early payments.

Conclusion

A disorganized accounts payable process can run your business down. Choosing the right AP automation software will help improve accuracy, efficiency, quality and speed for your business accounts payable function. Your business also will have a balance between a healthy cash flow and, at the same time, maintaining a good supplier relationship.

Mistakes to Avoid When Implementing Business Accounting Technology

Choosing to implement new technology for your accounting needs is a big step toward improving your business. Accounting technology helps streamline the accounting system, thereby offering various benefits. However, poor implementation can impact your business negatively. To make your implementation a success, there are several mistakes that you must avoid.

Importance of New Accounting Technology

Before looking at the potential mistakes, it is important to understand why businesses implement new technologies. Technology advancement has played a great role in various life and business aspects. In businesses accounting, technology such as computerized systems help easily track and record financial transactions.

Various types of technologies have impacted business accounting, such as cloud-based systems, mobile accounting, big data, artificial intelligence, data analytics, robotic process automation, etc.

Businesses that have successfully implemented some of these technologies have witnessed improved accuracy, faster processing, forecasting, analytics and better external reporting, among other benefits.

As a result, more business owners wish to enjoy the same benefits as their counterparts. Unfortunately, rushing to implement a system will end up causing more harm to your business than what you are trying to change. Therefore, being prepared before the implementation will save you a lot of trouble.

In a continuously changing technology landscape, businesses want to remain competitive and do not have much choice but to keep up with technology trends.

Mistakes that Result in Poor Accounting Technology Implementation

Failure to define your business’ specific requirements
Rushing to implement a technology solution because a counterpart is benefiting from it is a bad idea. Remember each business is unique and, before implementing a new technology, you should first consider your kind of business. Identify functions to automate and research suitable systems that fit your needs. Failing to do this means you could end up settling for a generic solution that will not properly address your business needs.
Failing to plan the implementation process
Implementing new technology involves more than installations, configurations, setting up necessary devices and adding users to the new system. It requires – among other things – focus, resources, accountability and follow-up for its success.
Failure to include users in the implementation process
Users can determine how successful a new system will be. Involving users will help get the business process workflow right, and also plays a part in avoiding resistance to the new solution. If employees are opposed to the implementation, it will fail.
Assuming it is a one-time cost
Failing to anticipate post-implementation costs may result in abandoning the new systems you implemented. Any new technology always comes with other hidden costs, such as maintenance fees, subscription fees, training, etc. Find out the involved costs to help you budget properly.
Failure to properly train users
Many times, user training is overlooked to cut costs or with an assumption that they will learn on the go. Having the users properly trained will ensure only minimum support is necessary. All users should be well trained before the vendor or consultants finish with the implementation. Continuous training should be carried out to ensure that users leverage advanced features of a system that will help them be more productive.
Failure to consult
Once you decide to implement new technology, most likely other businesses have done it, too. By consulting with other businesses, you will learn what has worked or not. You also may want to check vendor reviews, which can be readily found online. As more businesses choose to outsource accounting, it is best to consult on technologies to use for integration issues. This will help avoid the need to implement different solutions.
Failure to consider security issues
In accounting, security is vital as you are dealing with personal and financial data. A data breach can result in financial loss or reputation damage. Consider your internal security, train your employees on security, and implement a security policy. Ensure that the vendors you choose to partner with prioritize security.

Take Away

One vital point to remember when you want to implement an accounting technology is not to rush to keep up with trends without proper planning. A good implementation strategy will help you avoid the above-mentioned mistakes, ensuring your business enjoys productivity and workflow improvement.

Is Your Business Ready to Outsource Accounting?

Accurate and timely accounting is critical for any business’ survival. At the same time, it’s important for entrepreneurs to pour their energy into core business activities and not waste time on day-to-day bookkeeping. Unfortunately, the cost of setting up a full-time accounting department is prohibitive for small and mid-sized businesses. Thankfully, there is an option to outsource functions such as bookkeeping, payroll, tax services, financing, budgeting, chief finance officer services, and more to a third party.

In this article, we discuss how to know if you are ready to outsource, the benefits, and how to choose the right professional.

How to Know if You Should Outsource

Here is how to know when you need to outsource.

Business growth – when you start adding more employees and your business is expanding, you might be more likely to commit financial errors. You may also realize you are experiencing difficulties in handling payroll and invoicing and need more than basic bookkeeping.
When your business accounts start to take too much of your time – you barely have time for your other responsibilities and you spend more time checking your business accounts.
Multitasking – if you find yourself multitasking or having employees spend extra hours on roles they were not initially employed to do.
Need an expert’s opinion – you do not feel confident in your ability to handle bookkeeping, or you need another person to check the accuracy of your accounts.
Need to reduce costs – running a profitable business requires a check on operation costs. An in-house team comes with extra costs, including recruiting, training, managing more employees, updated software, etc.
You suspect fraud – when you suspect abnormal transactions or want to prevent possible fraud in your business. Unfortunately, as a small business, you can’t afford to hire a chief finance officer and have no one to implement fraud protection controls.
Investors – when you have investors, you may be required to involve a third party for an unbiased financial assessment.
Latest accounting software – if your business needs the latest accounting software to stay up to date with technology, but the cost is too high for your business.

Benefits of Outsourcing Accounting

Choosing to outsource your accounting can be uncomfortable as it means you are allowing a third party to have control over a very important part of your business. But your business could miss out on the following benefits:

Access to a professional dedicated team. It is the role of the accounting firm to keep up with tools, regulatory requirements, and systems that meet accounting standards. This guarantees your business is compliant and avoids taxation issues.
A trained professional will take a proactive approach, as they check for any red flags in your finances, expenditures, or cash flow.
Save on cost. It costs less to outsource than build an in-house accounting department. You avoid overhead costs such as employee salaries, insurance, and benefits, among others. You only pay for the accounting service you use.
Increased operational efficiency – an outsourced team will advise on the right accounting system for your business. They take care of automation, which will speed up processes and thus enhance operational efficiency.
Better decision making – you have access to industry insights and financial and management reports that will help make better decisions.
Access to the newest technology – it’s the business of the accounting firm to ensure they provide their clients with the latest accounting technology.

How to Choose the Right Firm

Having seen why you need to outsource and the benefits that come with it, the next step is to choose the right firm to outsource your accounting and bookkeeping needs.

First, you need to be clear about the actual services you need. This will help you choose a firm that aligns with your business values.

Where possible, look for recommendations from existing clients on the expertise, experience, and reputation of the firm. Be sure to check the payment schedule that will work best for you, whether they charge an hourly fee or monthly. Don’t ignore what is included on the packages offered. Other things to check for is their package flexibility, the onboarding process (should allow to define roles, expectations, communication policies, and procedures).

Most importantly, ensure that you understand the terms and conditions before signing a contract in case you need to terminate the agreement.

Conclusion

Whether you are a small business, medium sized, or a non-profit, with time your accounting functions will go beyond what your bookkeeper can handle. The best option is to outsource a dedicated team that acts as your accounting department or complements your existing accounting staff.

Technology Driven Accounting: How to Prepare Staff for a New Age in Accounting

Technology has no doubt changed the traditional way of doing things. Businesses and professionals are left with no choice but to adopt new technology to remain relevant in a changing environment.

However, the successful adoption of this new age in accounting can happen only if you prepare your staff in advance.

Why it’s Necessary to Prepare for the New Age Accounting

Technology offers many benefits; however, the constant rapid changes in technology create a major challenge to organizations and even to the professionals/employees. Some decide to stick with systems with which they are already proficient. Unfortunately, such a decision is not an option if you want to remain relevant in a changing accounting landscape.

Technological changes that have affected the accounting field can be attributed to technologies such as 5G, data analytics, robotic process automation (RPA), computer-assisted auditing technologies (CAATS), blockchain, and cloud computing, among others.

These technologies are literally creating new roles in the accounting field. For instance, automation will take away some accounting jobs, such as data entry, payroll, tax handling and bank reconciliations – thanks to Enterprise Resource Planning (ERP) systems and more advanced systems like Robotic Process Automation (RPA).

CPA evolution. This is aimed at incorporating changing skills and competencies in the accounting field. As a result, this will include a new curriculum and new CPA exams expected to be launched in 2024.

Despite the disruption in the accounting field by technology, it has introduced many new opportunities. Consider this: while automation takes care of repetitive tasks, the accountant can devote more time to planning, organizing, and advising. This enables the accountant to add more value to an organization as they focus on major tasks.

However, this advantage will benefit only those who are well prepared in advance and ready for the new form that accounting is taking.

How to Prepare Your Staff for a New Age in Accounting

Change is not always welcome, but preparing your staff in advance will help ensure a smooth transition. Here is how to prepare your staff:

Communicate
Let your employees know the intended changes in roles as well as new technologies that you plan to implement. Employees also can play a role in selecting technologies best suited to your business operations.

Mindset Shift
Help employees accept the technological changes. They need to shift their mindset and accept the changing digital landscape. This will help with expediency and the ability to take advantage of its benefits.

Upskilling and Reskilling
Give employees a chance to enhance their abilities. They also should learn new things to ensure they have relevant skills to continue working in advanced areas of accounting that require innovation, critical thinking, decision making, etc. Where necessary, they could learn basic programming and even basic automation for more advanced roles like data analysis. Gaining new skills will help your business transition from old systems to new ones, without necessarily hiring new staff.

Soft Skills
Accountants now more than ever need to learn non-technical skills so that they can easily interact with people. If they are expected to take up advisory roles, they should be good at problem-solving, communication, relationship skills, business acumen, etc.

Emerging Business Models
Let your staff be aware of new business models, such as microservices, marketplace platforms, and do-it-yourself models. This especially affects accounting firms whose employees need to be creative on how to leverage these models.

Positive Culture
Develop a culture that enables staff to compete at a new level to keep their morale up so they are not worried about losing their jobs.

Stay Updated
Keep everyone up-to-date with trends even when you don’t intend to implement every new technology that comes up. It helps to stay in the loop of what’s happening in the accounting field.

Keeping up with evolving accounting trends and changes will save you from losing clients. Preparing your staff for the new age of accounting will help your business provide value beyond traditional accounting to your clients. This is because you will be serving as business consultants and strategic partners as opposed to simply accounting experts.

Audits in Accounting: Improving Audit Quality with Data Analytics

Auditing is crucial to ensure the accuracy and fairness of financial information. However, one of the biggest threats to audit reputation today is data quality. This is because of the large volumes of data that businesses produce today. To deal with so much data, auditors are now turning to data analytics.

Data Analytics and Audits

Technology has played a major role in business growth as it aids in reducing operational costs and improving customer service. As such, many businesses have adopted enterprise resource planning (ERP) systems. These systems result in huge volumes of data, making it nearly impossible to analyze using the traditional audit process.

Auditors are left with no choice but to also use IT-based solutions; and this led to the development of audit software to support the auditors in data extraction and analysis.

To further enhance the workings of audit software, it’s now being integrated with data analytics. Given that data analytics works with structured data, the systems incorporate machine learning (deep learning) to extract useful data from a host of unstructured data.

Although these developments in the audit profession have not changed the primary role of auditors, they have changed how an audit is done by helping produce high quality audit evidence.

How Data Analytics Improves Audit Quality

Traditional audits involve combing through piles of data, which is time consuming. As a result, auditors prefer workarounds like data sampling, which does not give a true outcome.

With data analytics, an auditor does not have to restrict data to financial reporting systems only. Instead, they can use data from multiple complete data sets, such as sales statistical data and employee and customer master data. This enables an auditor to go beyond traditional audits that target limited data and include different audit relevant data.

Using data analytics tools, auditors look for predefined patterns that help reveal ambiguous relationships between variables that a manual system might not identify. This helps facilitate a more comprehensive decision that includes all data sets.

By integrating data analytics, auditors have access to a powerful tool that helps them better understand a business. As a result, they can easily identify key audit risks, provide deeper insights into a business’ systems and controls, detect fraud, and provide value in a less costly manner.

Apart from simplifying and speeding up the audit process, data analytics also enables auditors to focus on key risks.

The capabilities of data analytics continue to evolve to the point of automating the auditing process through advanced data analytics (ADA). This enables the automation of routine audit processes, allowing the auditors more time for matters that require professional judgment.

Challenges of Audit Data Analytics

AICPA introduced data standards to be used for data requests and to ensure production of standard reports from the ERP systems.

Another challenge is the integrity of data fed into the analytics systems, as this determines the quality of the end results. Systems used should be designed around collecting meaningful data. Auditors must also ensure that the conclusions fed into the systems are accurate and correct.

Although data analytics reduces the sampling risk, it introduces the challenge of getting numerous exceptions, mostly referred to as outliers, that produce results outside audit expectations. This calls for auditors to investigate the exceptions/outliers to determine if they are errors or misstatements.

Conclusion

Integrating data analytics into the audit process greatly improves audit quality and credibility. With rapid advancements in technology, the capabilities of data analytics will continue to evolve, making auditing work even more efficient while maintaining high quality.

Although the adoption of data analytics is dependent on the size of a business, availability of skilled staff is also crucial. To remain relevant in a fast-changing environment, auditors need to advance their skills to effectively use the data analytics tools.

How to Choose the Right Accounting Software for your Business

Business accounting activities can be tedious when performed manually and are prone to errors. For these reasons, many businesses have shifted to accounting software that offers numerous benefits, including data accuracy, time savings, easier auditing and on-demand reports.

With so many available options, it’s overwhelming to choose the right fit for a particular business. As more software vendors join the market with different enticing offers, it’s wise to be equipped with the right information.

Making a Decision Between Different Accounting Software

Each business is different and varies with industry. For efficient accounting operations, you cannot afford to choose a one-size-fits-all solution. Here are tips to help ease the selection process.

Understand your business requirements
Whether you are a start-up or already have an existing business, begin by establishing your accounting requirements. This will help in making a list of features that you need in accounting software. Avoid copying other businesses without understanding what your business needs are. Consider your business size, number of users and projected growth (in order to support business scaling).
Conduct Research
Learn more about accounting software options. Some might offer only general accounting features while others provide industry-specific features. By reading online reviews, you can see what users are saying about different accounting software.
Get Recommendations From Your Accountant
Accountants who have already worked with the software have better knowledge about the product and can advise what will work for your business. Get their opinions.
Your Budget
A business budget is a major determining factor in purchasing an accounting program. Note that software vendors have different pricing models. Depending on how much you are willing to spend, you can choose between monthly subscription fees or a pay-per-use model. Ensure that you have checked out any extra or hidden costs as you could end up spending more than initially planned. And pricing aside, avoid choosing the cheapest option just to save on expenses. The wrong software could cost your business more in the long run.
Integration with Other Software
Businesses today use various software applications. It’s crucial that you select one that integrates with your existing business applications. This will help avoid duplication of work, such as manual data entry from one program to another.
Online Versus Offline Accounting Software
You might prefer to have accounting software that you install on your computer, or maybe you’d rather use the online hosted version. Online accounting software is gaining popularity among SMBs due to its affordability. To use this option, you don’t need to install anything – just access it with your credentials. This allows users to access the accounting software from anywhere, even using different devices.
Availability of Customer Support
Check whether the software vendor offers support after you have purchased or subscribed to use the software. What times do they offer support? And for how long will this support be available?
Data Security
Data security is especially important for those who choose to work with online accounting software. Consider security measures offered by the software vendor to safeguard against data breaches and other cybersecurity risks. A good software vendor should have measures in place like automatic data backup, data encryption, and allow granular user roles to be assigned.

Parting Words

Accounting software is crucial for businesses of all sizes as it plays an important role in the accounting process; thus, you can’t afford to choose randomly. Consider all your business needs before making a choice for the best fit for your business. Create a list of preferences, then check for vendors that offer free trials to get a taste of their services before making a final decision.

Remember, choosing the right accounting software will save you from the costly mistake of replacing a wrong one.

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