How Artificial Intelligence Is The Future Of Accounting | Learn Now

By | May 14, 2018

Are you worrying Machine Learning impact on Accounting in future?

The technological advances must think about the future of our career. We should participate in the operation of the execution of the organization. Traditional accounting fails because its main approach no longer serves. The accounting is based on the idea of company history that is what it has done up to now. Its accumulated value thus, what it values are usually its assets what it has and its benefits what it earns. Many experts in finance already applied new mechanisms for valuing companies. The future of accounting will have to perform new roles such as:

Contribute to conceive the organization:

On several occasions, how current accounting mechanisms may not be adequate in an era. In which intangibles reign more than physical assets. The whole movement of intellectual capital goes precisely in the direction of looking for mechanisms to measure intangibles in organizations with the objective. The new changes in the context of the accounting mission and the new evolutionary needs of companies imply reorienting the accounting mission. The two main axes of this evolution are:

  • Information systems are as a basis for the analysis of causal relationships.
  • The intervention of the accountant is as a participant member of the management team and therefore in decision-making.

Traditional accounting generally worked with retrospective chronological cycles. The future of accounting must be acceptable. Be prospective as its future is uncertain, due to the successive and emergent changes of the context. Its approach must be strategic. That consists of establishing flexible and adaptable goals to the changes. Having as a base the life of the product and the costs must evaluate those life cycles. In this way, the costs anticipated to the crisis and the discontinuity of time becoming Target Costs. The Target cost demands the implementation of the necessary infrastructure to reach the goals proposed by the strategic planning, instead of historical costs.

With all these changes, there has been the emergence of gradually more sophisticated financial and commercial transactions. Accounting has historically been the fundamental instrument. This is for the patrimonial management and the responsibilities derived from that management. The information about the management and patrimonial control is the object of Accounting. For examples are Investors, entrepreneurs, shareholders, financial entities, governments, etc. Make sound decisions in your operations and take the forecasts for your strategic planning. Accounting currently possesses are not sufficient to respond to the challenge of the information demanded by the Contemporary World.

In order to carry out scientific and technological research in the accounting field, the accounting profession must change its traditional paradigms. Focus on accounting as a science, since it is the only way to do scientific research. Leaving in the background what has been the accountant has been doing.

The convenience of billing and accounting

We like to inform our clients about discoveries and new forms of accounting. An online, agile and secure tool allows you to manage fully your business from anywhere, 24 hours a day. Now, imagine that you could post your invoices in an online application. Just scanning them in your office printer or taking a picture with your mobile phone. Then pressing a button would be added to your accounting books.

Trends in information technology

  • What is the International Federation of Accountants?

Information technologies are changing the way accountants work. The framework in which their activities developed because they have changed the way companies organize and manage. According to IFAC, the following trends in Information Technology (IT) are particularly worth mentioning:

  • The wide availability of powerful, inexpensive and relatively simple to use computer programs with graphical user interfaces.
  • The step of acquiring customized computer systems to use the turnkey software.
  • The passage of large centralized equipment or mainframes is too personal computers used alone or as part of networks.
  • The growing availability of computerized data accessed in real time or delayed through local or remote access.

Internet

New data capture and storage technologies lead to the computerization of data and information in text, graphics, audio and video formats and emphasize the management, presentation, and communication of information using multimedia techniques. The growing use of networks connects individuals and companies and inter-companies with systems. These could be such as e-mail and the Internet, including the World Wide Web. The new development systems based on information technologies software engineering tools CASE object-oriented for programming and workflow technologies. Continuous development of intelligent incorporates expert systems, neural networks, intelligent agents and other problem-solving techniques. New business re-engineering methodologies based on the effective integration of information technologies and business processes.

Technologies help the accountant to do their work

These technological advances can be valuable for the future of accounting systems to meet information needs efficiently. The automatic processing of information plays a fundamental role and shows how Artificial Intelligence is impacting The Future Of Accounting. Below we described how information technologies could change.

Information Automation

The accounting information system plays a fundamental role in the measurement of financial results. The processing of accounting data today quite automated in most companies. This means the impact for the future of accounting automation of computing has covered all aspects of accounting management. The Daily accounts receivable and payable, preparation of the payroll are obtaining financial statements. The financing statement provides quantitative accounting information.

Strategic Information

For the future of accounting services, it is necessary to modify the information systems to accommodate the information of the strategic level. If we follow Porter’s Competitive Core model, the key data required at the strategic level. These are related to competition, customers, suppliers, barriers to the entry of new competitors and substitute products. An information system is not limited to the classic accounting information. That reports on the average time taken to start up a new product in the market.

Intranet and Groupware

Information systems must design with the knowledge of the organization flows. It favors intangible assets are used efficiently and increase. Two tools enable these uses are Intranet and Groupware. Employees have browsers to access the internal data of the company, addresses, data, internal work documents, internal email, utilities to send files, make video conferences or electronic meetings.

Groupware

This tool addresses knowledge management. It is being able to work in groups, using the possibilities of information technology and telecommunications is fundamental. It combines the management capabilities and document consultation, with email, calendar, Web browser, access to news forums and video conferencing. Many available programs, some of them free on the Internet, perform groupware tasks.

Electronic Banking

This concept is increasingly used in companies to make known balances, reconciliation or make transfers. An electronic banking system must be based on the real-time connection of its users with the central computer of the bank. Make available to its customers, in an integrated manner. In this way, the factors distinguish some electronic banks from others would be:

  • Time range, available 24 hours a day
  • Comfortable, easy and simple screen
  • Possibility of multimedia
  • Transfer query information to spreadsheet or mail programs.
  • Standardization of communications
  • Interactive help
  • Fast transmission of files
  • The possibility of Internet access

The phase of communicating information to users follows that of analysis. That involves both external economic agents as well as internal ones to support decision-making in the company. In order to try to satisfy all users, the accounting information system must be flexible. Each user of the accounting information: investors, management, the state, shareholders, creditors, etc have different needs and different access to information. Globalization is part of a historical process of expansion. Before addressing these mechanisms, it is necessary to identify the people or groups of people that make up each of these sectors in conflict. The future of accounting is approaching more quickly due to the current pace of business. Legal rules governing business, moving from national standards to international standards, in the accounting, financial and international law fields.

Requirements that a counter must meet for future organization

The accountant must gather some fundamental characteristics, such as values, capabilities, integrity, objectives, services and many others. Continuing education and lifelong learning are very important for accountants as it goes beyond certification. It is very important to acquire new skills and knowledge in a changing world. For these values, the following levels of involvement are needed for the future of accounting:

  • The increase of the firm and of the business
  • Individual professional growth
  • Attract new quality professionals
  • Increase training and training
  • Promote the transformation of certification exams to evaluate new competencies.
  • Accountants must be able to perform high-quality work in an efficient and appropriate manner.
  • The requirement of a broad knowledge base and increase more specialized services
  • Require a competence project of all accountants considering the profession as a whole.
  • To achieve that the accountant is looked for by clients and patterns
  • Accountants must conduct themselves with honesty and professional ethics.
  • The requirement of new norms or guidelines for the services that arise
  • It influences sales, as well as the scope of services to maintain the integrity
  • Increase the value of employees.
  • The requirement of a clear focus
  • Realize the ability to provide unique value to current and new services
  • Increase in sales opportunities and expansion
  • Encourage more confidence in the market.

Conclusion

The advances technology has to update the information on what may affect the accountants. We have everywhere new software, new hardware, information updates. Those companies can take into consideration to avoid suffering a delay, especially when there is a lot of competition. The number of innovations in this era the accountants is not yet trained fully to develop within this field. They prefer to focus on what are the updates of laws, rules, and regulations and leave aside the updates regarding technology. It is not difficult to achieve development the future of accounting. A well-known Chinese proverb says, “The best time to plant a tree is 20 years ago. The next best time is now.”

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