Chartered Accountants & Tax Specialist
General update by IBBZ Accounting on latest tax news, business growth and technology tips.
What is the Future of Accounting & Role of an Accountant?
Accounting is completely dependent on technology these days. Technology plays a vital role in today’s changing business environment. And there is no doubt accounting has been part of this. Over the past few years, there have been significant changes in accounting world. Yes, accounting wasn’t easier earlier than what we are doing these days with just one click.
Technology such as accounting cloud software has changed the view of accountants in terms of doing accounting. However, the fact it relates to accounting is that it is mere a tool, the medium which gives a shape to what the fundamental purpose of accounting is and nothing more.
Technology is merely a tool
Technology assist in creating reports on past performance in a most cost effective manner. In determining what the future of accounting really is, we have to think “What do you do after you get a financial report?” Of course, it will show the performance of the business you are in. But, importantly it will reflect your “business decisions” that you have made during the year. Suppose you have made a loss in the year, you can directly correlate it with your bad “business decisions”.
Technology helps the accountant in creating this record now; more efficiently, faster, and at minimal cost. Thanks to automation, user friendly cloud based systems, and connectable databases. Once things are entered into databases, the software makes the data into records. This has reduced paperwork and risk of losing data in any circumstances.
The Role of Accountant
The traditional role of the accountant was to prepare financial reports “After the fact” and ensure everything is under required compliance. Based on your financial report and his/her ability to understand your decisions, your accountant will help you evaluate your past. And to do so, your accountant creates an accurate and reconciled record of the past.
The future role of accountant is beyond the numbers. A good accountant looks into different ways of improving your business, creating more wealth for you, securing your existing wealth, lower your taxes and much more.
To server the real purpose of accounting there was, is and will always be requirement of accountants who can help and navigate their clients in taking right future decisions based on past. A good accountant help client to understand the future consequences of their decisions.