From communication and transportation to health and entertainment, technology has dramatically disrupted several industries and businesses over the past few years. Now, some savvy financial experts are utilizing financial technology, or Fintech, to improve operations, expand flexibility, cut costs, serve clients faster, improve decisions, and forge a strong client relationship.
As per the Statista survey, “Fintech companies acquired $137.5 billion globally in investment during 2019 and are now represent the fast-growing companies in the world.” Today, from electronic payments to banking, accounting, insurance, and wealth management, various financial fields are getting a digital facelift. This infers businesses need to band together with Fintech at the earliest opportunity to flourish.
Remember, most of the people across the world are not familiar with Fintech and many financial professionals are reluctant to embrace technology. Undoubtedly, those financial experts who adopt, tend to thrive while those who don’t, get left behind.
Being future-focused and stay up to date with the latest technologies can help you stand out from your competitors and make you a better financial expert. Here are a few latest technologies that advisors should embrace in 2020 and beyond to become a financial expert of the future.
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According to Capital Counselor, “Companies that use cloud accounting add 5 times more clients than companies that don’t use these tools.” Certainly, cloud accounting is the future of the accounting industry and providing numerous benefits to CPAs and accounting firms.
Today, many financial professionals are using cloud-based software-as-a-service (SaaS) applications for an array of work and processes that might be considered non-core, from customer relationship management to financial accounting to human resources. Banking and financial institutions should embrace the benefits of the cloud fully because core service infrastructure in areas such as consumer payments, credit scoring, and billings are going to become utilities in the coming years.
Cloud computing gives the power to financial fanatics to update their accounts as easily as they update a new post on Instagram. With cloud accounting, you can access financial data at any time, from anywhere, and safely encrypted and store it on a cloud server. Moreover, this cutting-edge technology can help you reduce IT costs and save time by keeping you constantly connected to the business. So, add cloud accounting to your financial arsenal today, and share and collaborate data with ease, reduce your reliance on paperwork, speed up the payment process, and better control your financial processes.
Cash Flow Forecasting and Management
When planning future changes in your client’s business, a cash flow projection will give you the information you need to make informed decisions. As managing cash flow is one of the top financing challenges for small businesses, offering cash flow advisory and helping clients to manage their cash flow through emerging technology can help accountants stay ahead and quickly position themselves as a trusted advisor.
There are several AI-powered cash flow forecasting software that can help you improve your client’s cash flow and finances – understand the impact of possible outcomes on the future cash flow, keep track of overdue payments, plan for upcoming cash gaps, track spending, remove the jeopardy, growth planning, and more. Moreover, providing cash flow projection report to banks can help your clients get business funding easily.
Doing business in these competitive and economically trying times is not as easy as it seems. As cash flow is one of the most common and biggest reasons for business failure, it becomes important more than ever to have cash flow forecasting and management software at your disposal.
Accounting and blockchain are just destined for each other. The financial sector has been one of the biggest blockchain sectors with a market share of 60.5%. It is forecasted that by 2025, more than half of the accounting firms will have utilized blockchain for their everyday operations. Besides, this cutting-edge technology will bring disruptive changes to the fintech industry, with the market expected to climb to over $39 billion in size by 2025.
The power of distributed ledger technology offers loads of advantages to financial professionals. You can leverage these benefits to take your accounting firm ahead and to become a financial expert of the future. Financial institutions will use blockchain for reducing errors, increasing efficiency, easing reconciliation, improving regulatory compliance, and reducing cost, fraud, time, and auditing.
Its transparent, immutable, decentralized and easily reconciled features help financial specialists increase the efficiency and value of the accounting function. Moreover, it eliminates the various fundamental problems with modern accounting such as unauthorized transactions, human error, and traditional accounting methods.
Robotic Process Automation (RPA)
RPA has become one of the fastest-growing concepts in this rapidly changing accounting industry. This intelligent automation enables you to reduce the human labor required to process accounting and financing processes.
Accountants and other finance professionals can use this future technology to automate their clients’ accounts payable (AP) and accounts receivable (AR), and reconcile information from multiple systems at a fraction of the cost and time. Having robots assume control over a portion of the physically escalated work from humans could result in increasing accuracy and quality. Besides, this safe and non-invasive technology will provide flawless consistency in performing the activities across the broad each time.
According to Deloitte, 72 percent of organizations will be working with RPA within the next two years and it will reach near-universal adoption at some point in 2023. Pega Systems, Blue Prism, WorkFusion, and UiPath are some of the most sought-after vendors that provide RPA tools to thousands of accounting firms worldwide. Having access to accurate and error-free data will improve the quality of analytic, employee productivity, customer satisfaction, and the operational quality of IT support and management.
Artificial Intelligent integration with accounting platforms offers applications such as data handling & processing, real-time financial status, streamline data entry, as well as automated AR and AP. As per the report of Sage “56% accountants agree that Artificial Intelligence will automate accounting tasks, improving productivity and efficiency.” Not updating your accounting practices with the latest AI trends can cause your profession to fall behind with slower work times.
And to your surprise, AI has already started impacting the accounting industry. Accounting solutions like Xero, QuickBooks and ForwardAI have begun integrating AI-based automation capabilities.
You can seamlessly reduce accounting errors and workload that allows you to move to advisory roles. From predictive and forecasting solutions to smarter assistants, automatic allocation of transactions, and anomaly detection, there are a lot of ways artificial intelligence will impact accounting professionals in the coming future. So, be ready and adopt the change ASAP to become a reliable and trustable accountant/advisor of the future.
Technology is shaping the future of accounting and the above-mentioned technologies are becoming part of the finance team at a lightning speed. The future of accounting and finance will belong to those accountants and business owners who will adopt it as it is emerging. Don’t let yourself be left behind – embrace the latest financial technologies to take your accounting career to the next level and become a financial expert in the future.