Evolution of Accounting & Bookkeeping with the Advent of Technology
Accounting and bookkeeping processes have undergone major processes in the recent past. Digitalization has been the major change that transformed the systems of accounting and bookkeeping. However, it is also important to note that quickly adapting to digitalization remains the biggest challenge faced by companies in relation to accounting & bookkeeping.
Accounting and bookkeeping are functions crucial to the financial department of a company. Bookkeeping is the process of recording financial transactions. Accounting can be defined as the process of interpreting, classifying, analyzing, summarizing and reporting financial data.
The advent of technology has greatly initiated some significant changes in the world of accounting and bookkeeping. Nowadays, with the help of top-notch software companies can manage all the aspects of their business. Without exerting much effort, companies can automate the selling process, employee management and finance functions related to the business. New software can automatically manage finances, thus making the accounting and bookkeeping process a lot easier.
Benefits of Adopting Technology In Accounting & Bookkeeping
1. Real-Time Information
With the advent of technology, any real-time data can be fetched out at any point in time. The options in the accounting software offer flexibility in checking the data on a real-time basis, which increases the flexibility to use modern bookkeeping in organizations.
2. Automated Process
The process of carrying out tasks has been automated. In the past, a bookkeeper manually needs to make calculations to achieve the business numbers which were prone to error. With the help of new technology, the function of every count has been automated saving precious time.
3. Bulk Corrections
Earlier, if an error occurs in the bookkeeping records the person handling the bookkeeping process had to change the entire dataset. Modern bookkeeping solves this issue by offering the opportunity for bulk correction at any point in time. Nowadays, the bookkeeping software allows rectification of errors at any point in time.
How UAE Fair in Adapting of Technology in Accounting & Bookkeeping?
Being a top hub of business and a favoured commercial destination of global investors, UAE has to play a key role in adapting to the transformative phase in accounting and bookkeeping processes. A recent report by the Association of Chartered Certified Accountants (ACCA) sheds light on how the accountants in UAE are planning to tackle the challenges posed by Artificial Intelligence (AI) and Machine Learning.
The report states that 40% of accountants in the UAE consider AI as hype while 55% believe that the prediction of AI transforming accounting will become a reality within three years. In the UAE 46% have no plans to adopt machine learning in their organization and 12% of accountants remain undecided about it.
However, 27% are having initial discussions or exploring concepts, compared to 24% globally. On the positive side, 5% have reported that they are currently at an advanced testing stage and plan to go live with the new technologies in a short span of time. Another 5% stated that they are in production mode with the live data.
Challenges Posed by Modern Technology in Accounting & Bookkeeping
1. Need to Train Staff
For the UAE, the main barriers to adopting machine learning are cost and lack of qualified staff. The ACCA survey states that 56% are not willing to adopt the new tech due to cost implications. Meanwhile, 49% have cited the dearth of skilled staff to lead the technology adoption. Interestingly, nearly a third says they see no clear benefit from using machine learning.
Machine learning is considered to be a critical area as far as accountants are concerned. In the coming years, accountants need to understand its value and benefits in addition to the challenges it poses.
2. Upgradation Accountants’ Skills
Al potentially saves time of accountants and bookkeepers. The companies that adopt AI can shift accountants’ role to more valuable work such as data & trend analysis. This can help the company to focus more on profitability and growth.
AI and machine learning are predicted to add more value to the profession of accounting. These technologies can drastically alter the way accountants in UAE deliver insights for business decision-making, fraud detection, risk assessment, understanding complexities in taxation and also with more effective non-financial reporting. However, companies need to equip their staff on how to deal with new technologies.
Accounting Services in Dubai & UAE with the Help of Modern Technology
Machine learning and AI gives a huge opportunity as professional accountants in the UAE. The accountants get an opportunity to develop their grasp over future technologies, thereby empowering their digital skills. If a company is grappling with accounting & bookkeeping processes it is advisable to outsource such services.
Jitendra Chartered Accountants (JCA) offer accounting and bookkeeping services in Dubai & across UAE. Using modern technology in accounting & auditing industry, JCA help businesses in recording all the financial transactions and helping companies to comply with local & international regulations. JCA is consist of a team of qualified chartered accountants who mainly focus on addressing cash flow requirements, preventing insolvency & bankruptcy, plan & forecast budgets leading to efficient financial management, analysing the performance of the company based on various ratio analysis and timely preparation of accounts to make strategic decisions.