Assignment Problem: Accounting software manages and records an organization's day-to-day financial transactions, such as fixed asset management, expense management, revenue management, accounts receivable, accounts payable, sub-ledger accounting, and reporting and analytics. A comprehensive accounting system tracks an organization's assets, liabilities, revenues, and expenses. These transactions then populate the general ledger in real-time, giving CFOs, treasurers, and controllers instant access to up-to-the-minute financial data. It also provides P&L owners with visibility into their operational performance.
The systematic recording of these financial transactions allows for the creation of quarterly and annual financial statements, such as balance sheets, income statements, cash flow statements, and stockholders' equity statements. Accounting software is essential to an enterprise resource planning (ERP) system (Oracle, 2022).
The 8 Best Accounting Software for 2022, include FreshBooks, Intuit QuickBooks, Sage Business Cloud Accounting, AccountEdge Pro, Wave Accounting, Xero, GoDaddy, and Zoho Books (Rosenberg, 2022).
Although, when I was working with a container shipping company as an accountant, the name of the Accounting software I used was ocean software for accounting-related operations. This software is peculiar to container shipping companies.
The Trend in Accounting Software.
Consumer attitudes and technological advancements herald a shift in the accounting industry. These changes have been a long time coming, with reports revealing that 99 percent of accountants believed the industry was shifting toward a reliance on technology. The COVID-19 pandemic has been a significant catalyst for the rapid adaptation of transaction processes (Controllers council, 2021). Below is the trend in accounting software.
1. Automated accounting -- Auditing clerk, bookkeeping, and accounting jobs will almost certainly become fully automated. Automated processes are more efficient and reduce errors. It would enable accountants and businesses to use data to optimize operations and make data-driven decisions more
2. Accounting software integrated with ERP -- Switching to an enterprise resource planning (ERP) system is one example of an emerging accounting trend. An ERP allows businesses to integrate their accounting and financial data with other critical areas, such as supply chain, order, and production management. An integrated system allows all essential information to be entered into a single application and made available through multiple channels. Companies can gain numerous advantages by consolidating all accounting and other critical details under one roof: ERP.
3. AI for Accounting -- Accountants and CIOs agree that AI software is one of the innovative technologies that will influence the industry's future. According to a survey, 20% of accountants currently invest in and implement AI technology. Another 20% said they intend to implement AI technology within the next 12 months (Sage, 2020). Conversely, 47 percent of CIOs genuinely think that the COVID-19 pandemic has hastened digital transformation and the implementation of emerging technology such as artificial intelligence, machine learning, blockchain, and automation (Harvey Nash/KPMG, 2020).
4. Big Data and IoT in Accounting -- Big data and the Internet of Things (IoT) are impacting the development of new technologies that assist businesses in broadening their assessment scope and techniques. CPAs can spot potential challenges and develop mitigation strategies using big data. Companies that understand how to use big data will be more alert than those that do not. Finance experts and accountants are needed now more than ever to recognize valuable data and guide firms in acting based on the insights gained.
5. Blockchain -- Big 4 accounting firms such as Deloitte, KPMG, Ernst & Young, and Price Waterhouse Coopers have all jumped on the Blockchain bandwagon. These companies have employees working in distributed ledger labs, hoping to develop fixed distributed ledgers. Blockchain technology is transforming the financial sector. It has decreased the cost of sustaining and reconciling ledgers and produced tracking digital assets relatively quickly.
6. Data Analytics -- Companies prefer accountants with a background in data science and analytics. This is because technology in the accounting industry focuses on data analytics. Accountants are now required to act as advisors with solid data analysis skills. And even though data analytics in accounting is not new, it is only now gaining traction as an industry standard. Accounting firms use data analytics in taxation, risk management, auditing, and consulting. It is proving helpful in identifying weak points in processes that need to be improved right away.
In conclusion, the accounting industry's emerging trends can be attributed to generational change, marketing trends, public regulatory policies, and economic instabilities. These adjustments will assist the accounting industry in keeping up with changes in other sectors of the economy and positioning itself to satisfy a new generation of clients.
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