The world of bookkeeping and accounting is rapidly evolving thanks to breakthroughs in technology. Powerful new tools are emerging that promise to transform how businesses manage their finances and streamline bookkeeping processes.
In this in-depth analysis, we’ll explore several bookkeeping technology trends that are gaining traction and could play a major role in shaping the next 10 years for this industry. From AI and automation to expanded cloud services, let’s take a look at where the future is headed.
Rise of AI and Cognitive Automation
Artificial intelligence is infiltrating many fields, and bookkeeping is no exception. AI capabilities like machine learning, natural language processing and computer vision enable new potentials for automating repetitive, labor-intensive accounting tasks.
Some predictions include AI: automatically capturing and categorizing receipts using image recognition; answering basic accounting questions via chatbots; generating financial reports by analyzing transaction data; and even performing complex analysis like fraud detection.
AI bookkeeping assistants can take over routine work, freeing up human bookkeepers for higher-level advisory duties. Early adopters are already seeing productivity gains and cost reductions from selective AI integration. Expect this automation trend to accelerate as AI systems get smarter.
Expanded Cloud Accounting
Cloud-based accounting software has been around for over a decade now, but cloud solutions continue improving at a torrid pace. Faster internet, more advanced cloud infrastructure and internet of things trends are enabling richer cloud accounting experiences.
Features like real-time financial dashboards accessible anywhere, integration with more third-party business apps than ever before, and the ability to securely share financial data between multiple stakeholders in the cloud will become standard in the 2020s.
With all accounting workflows happening in web and mobile apps rather than desktop software, the anywhere-anytime nature of cloud accounting truly removes geographical barriers. Expect continued innovation expanding capabilities of remote and collaborative cloud accounting platforms globally.
Industry Specialization
As AI and cloud services advance bookkeeping automation, human bookkeepers may increasingly specialize by industry vertical. Bookkeepers expert in the specialized compliance, workflows and nuances of fields like construction, healthcare, real estate and more will stay relevant.
Integrated solutions catering specifically to the unique needs of certain sectors will likely rise alongside industry-focused bookkeeping services. With finance becoming such an integral part of every business, specialized expertise provides bookkeepers a competitive edge in this evolving landscape.
Advanced Analytics and Reporting
As troves of accounting data accumulate in cloud systems and AI learns patterns, sophisticated predictive analytics and interactive dashboards will provide deeper financial insights. Future bookkeepers may act more as strategists using data mining to inform high-level decisions.
Customizable interactive reporting accessible on any device will replace static printed reports. Real-time tracking of key metrics against rolling forecasts allows prompt course corrections. Personalized analytics may even optimize individual client financial wellness over time.
Blockchain and Cryptocurrency Integration
Blockchain technology first emerged with cryptocurrencies, but its decentralized transaction ledger capabilities also hold promise for accounting applications. Blockchain could potentially transform functions like transaction processing, auditing and even payment exchanges.
Full-scale blockchain bookkeeping platforms represent the next evolution. Some foresee blockchain ledgers automatically reconciling transactions across systems in real-time for maximum visibility and control. Cryptocurrencies too may become a viable option for some business payments.
Accounting as a Service
The transition is already underway – traditional bookkeeping is evolving into flexible, subscription-based “accounting as a service” models. Rather than maintaining in-house systems, businesses tap tailored accounting solutions customized for their specific needs from expert third-party providers.
On-demand, scalable pay-as-you-go cloud services optimize cash flow for growing companies versus upfront software costs. They also free internal resources to focus on core functions instead of bookkeeping minutiae. Full-service outsourced accounting solutions will likely gain further traction.
Democratization of Expertise
Through cloud-based financial education resources, AI assistants, and community forums, accounting knowledge and best practices are becoming more accessible to the average small business owner. Self-service tools remove the hurdle of high costs that previously restricted entrepreneurship.
Crowdsourced accounting approaches like allowing clients and freelancers to post projects for competitive bidding bring market forces to drive down service costs. Democratization creates more accounting choice and empowers non-expert business owners with financial know-how that was traditionally gatekept.
Final Words!
In closing, technology is rapidly advancing every business function including bookkeeping. By embracing emerging tools like AI, cloud accounting, and data analytics, forward-thinking firms can streamline operations and gain a competitive edge. It will be an exciting decade ahead as these transformative bookkeeping trends disrupt convention and unlock new opportunities across the industry.
