By Auto Count Team
Throughout the history of business, people have utilized various methods to record and report data, leading to the accounting processes we see today. Innovation has propelled accounting technology evolution, progressing from physical ledger books to computerised spreadsheets, to professionally designed software, to even Cloud and AI solutions. These advancements streamline financial reporting, boosting efficiency and data processing capabilities for accountants.
Latest Accounting Technologies
Two innovations that have been game changing for the profession are Cloud-based accounting and Artificial Intelligence (AI) Accounting, which are some of the latest accounting technologies for accountants. Cloud accounting is an accounting system hosted within the cloud that does not require an organisation to own the whole system. It enables remote data access, which is especially useful for businesses with multiple sites or mobile teams. Beyond these advantages, what other benefits does cloud-based accounting provide?
Meanwhile, AI Accounting systems work similarly to Cloud-based accounting systems, with a touch of extra modules, such as additional analysis and forecasting modules, and are touted to be able to reduce costs and save time by automating the bookkeeping process.
AI Accounting systems utilize machine learning to analyse data, detect abnormalities, perform data checking and prevent data errors, thus further reducing the need for cross-checking and notifying accountants of possible mistakes.
Just like cloud accounting systems, AI systems can be programmed to meet regulatory requirements, ensuring compliance. Some also offer extra financial forecasting modules, aiding businesses with predictive insights based on past performance and current market trends.
On-Premises Accounting Solutions vs Cloud-Based Accounting Systems
Cloud Accounting and AI Accounting emphasize accessibility, yet some businesses still prefer on-premises systems. How do on-premises systems differ from Cloud-Based Accounting technology?
Unlike cloud systems, on-premises accounting confines users to local access, and even though hindering remote work and collaboration, offers independence from unstable internet, ensuring uninterrupted on-site access.
For security and maintenance, on-premises software is locally installed, and the owner has complete control. There are customized security measures, spanning system security to physical safety measures to protect sensitive information and assets. In contrast, cloud-based accounting utilises logins, multi-factor authentication, and data encryption for security, and automatic backup eliminates the need for data recovery. For maintenance, on-premises solutions require users to update system or security patches, often involving tech support at an additional cost, but cloud solutions handle upgrades on the provider end, with each user login leading to the latest features.
However, on-premises accounting software offers an exceptional advantage: customisation. For organisations with specific system requirements, on-premises accounting can be tailored to address that need, may it be industry-specific needs or user-specific recording and reporting preferences. These are often plug-ins to be integrated to enhance the system’s capabilities and align it with the organization’s requirements. The possibilities are limitless.
Even though cloud accounting does not offer the same level of customization, it comes with essential accounting features that cater to standard usage and are deemed sufficient for most SMEs and accountants for reporting processes.
Accounting technology has revolutionized accountants’ work, and this transformation boosts efficiency, accuracy, and data security. Real-time updates empower accountants with instant access to information for informed decision-making.
Cloud-based accounting systems heighten accessibility and cost-effectiveness for both businesses and accountants. As technology advances, accountants become more efficient and client-centric. Explore AutoCount Cloud Accounting, a real-time solution offering flexibility with minimal investment.