Cloud Accounting has become extremely popular for several reasons. Not only is it more practical than traditional software, but it’s also significantly more efficient and time effective. In 2018 alone, Intuit stated an increase in demand for its cloud software by 1 million subscribers. Likewise, Xero, another cloud-based accounting software provider, stated an increase of 1.386 million. These stats alone are a clear indicator of the growth of cloud accounting and how it’s revolutionising the accounting industry as we know it. But what exactly does cloud accounting offer that can’t be covered by traditional accounting solutions? At first, device independence, omnipresent accessibility, and unrestricted resource limit were some of the initial benefits of cloud computing. However, the recent increase in demand has caused innovations within the niche to skyrocket, now offering tech innovations that were never available with cloud accounting. Here are some of the key new innovations you can enjoy from using cloud accounting as part of your tax and accounting services.
Accounting Bots
We have already seen the use of bots in several different industries. Originally, this could be seen with smartphones with the use of Siri and eventually speakers such as Alexa. Bots are also being used for websites to quickly deal with customer inquiries. But how exactly are they being used in the accounting industry? Companies such as Xero make use of their own Messenger app to track expenses and accounting features. The tool works by integrating with IM apps to keep track of all financial transactions. Users can then interact with the bots to ask for details about a particular transaction, much like how you would ask a friend or colleague in the past.
At first, it was a market fear that these bots would soon take over the role of the accountant. However, this soon proved not to be true. If anything the role of the accountant is more important than ever, as accountants can effectively analyse the data provided by accounting bots. The bots used are reliant on cloud-based technologies and by themselves cannot present comprehensive conclusions. As we see more accounting companies using smartphones as part of their day to day operations, the rise of accounting bots is expected to increase. As of currently, the potential of AI is yet to be fully explored and as a result we are not yet sure just how far accounting bots will take us in the future. It is expected that accounting bots will be used to deliver greater assistance to all users and make their experience as smooth as possible. After all, accounting software can be extremely complex to even those who are trained to use it!
Innovation Of Job Models
Over the past 20 years, the outsourcing of accountancy work had a significant impact on individuals working in the accountancy industry. Today, it is expected that new cloud technology will further revolutionse the market. Future accountants will be required to have both the accounting skills necessary to complete their work, as well as an in-depth understanding of the various software they are using. New cloud accounting software such as QuickBooks has changed the industry so that anyone can manage their own business accounting with ease. However, a professional accountant will still deliver significantly greater results than someone with little to no experience. This means that the skill set of a professional combined with cloud technology will definitely have a huge impact on the future of the industry.
Within the industry, there is still some worry that the implementation of cloud technology will remove certain jobs from the marketplace. However, technology is actually transforming the job models of individuals, rather than removing their jobs altogether. The work from home model (which is already used in several different industries) will likely become more popular amongst accountants due to the power of cloud accounting systems. In addition to this, experts who work in the accounting field will also be the first choice for testing new features and coming up with innovative solutions. Therefore, though jobs themselves may change, they will not be removed altogether.
Enhanced Customer Experience
No matter what industry a business operates in one thing must always come first: the customer. Due to the general privacy of data, accountancy is an industry in which customer experience is crucial. Every top accountancy firm can enjoy customer loyalty due to the outstanding experience they provide each and every customer. The innovation of cloud accounting will allow such businesses to further enhance this experience.
Cloud accounting has innovated tax and accounting services in several ways. Customer support is no longer dependent on a call centre or voice calls. Instead, cloud based services can be used to quickly respond to customer enquiries. With both the user and the provider being able to work from any location at any time, a whole new level of communication has been established within the niche.
As well as collaboration through the same platform, the cloud also allows for several communication solutions to be used and synced to a single platform. These include IM chat, voice calls, video calls, text messages, social media posts, all of which can be used by an expert to quickly help clients using their favourite form of support. As a result, accountants can provide significantly greater levels of customer service.
