Automation and the Future of Accounting Summary (Accounting Today)

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Accounting Automation…Friend or Foe?

Accounting Today’s podcast with digital evangelist Dave Bergstein dives into how new software solutions are shifting the accounting landscape.

Accountants Aren’t Going Away

For those who think that professional accountants simply crunch numbers and enter data, think again. The intended purpose of the accounting profession is to interpret business language and ensure compliance with industry standards.

Despite not Being Number Crunchers, they are Still Often the Numbers Guy or Gal

So many decisions are predicated on what the numbers (or data) say. However, accountants are trained to glean insights from observing those numbers. Gathering, inputting, and extracting data figures create an inefficient draw on the accountant’s time. This precludes their “powers” from being fully unlocked, and thus, fails to adequately service client needs.

Less Time Entering Data = More Time for Personalized Advice

Bergstein refers to this as diagnostic information. These insights can be as simple as noticing poor spending habits or cash flow holes that are subverting earning potential. If your accountant isn’t spending every free waking moment punching numbers into a spreadsheet, they will have significantly more time to analyze the actual accounts, and how to best maximize financial processes.

From Score Keeper to Coach

Automation requires a restructuring of how entry level accountants are trained. Traditionally, they gain exposure to the field by executing data entry and formatting tasks. Automation would undoubtedly change this.

Accountants of the future will be able to properly leverage existing and emerging tools to become more effective in their professions. Bergstein explains that “Nobody wants to work 80 hours a week.” However, failure to utilize these tools to properly satisfy clients and remain competitive will make 80 hour work weeks a grim reality.

Listen to the full podcast “Automation and the Future of Accounting” here.

Curious about what automation software looks like? Learn more here.