For nearly ten years now, technology has been developing at a rapid speed. New devices, apps, and games have been developed, and social media is now used by the world’s businesses and or brands to promote products and to target customers.
Just like other fields and industries, the financial services industry is where professionals keep looking to for new ways to improve online customer services. Consumer brands, like Google, Facebook and Amazon, and small-sized financial services companies, keep looking for innovative technologies or tech gadgets to ensure efficacy, provide unique customer experience, and speed up the process of expanding their networks.
Thus, it can be said that exponential growth in the field of IT (information technology) prompts financial services companies to leverage the digitization of banking technology in order to transform the industry.
Here is how technology impacts finance & accounting
1. Cloud-Based Systems
These days, there is a strong need for businesses to utilize the internet as their success and long-term survival depend on it. Some businessmen think that the internet is nothing more than a place where their official websites and social media accounts reside. However, there is a momentous change that is continuously sweeping across the corporate world – the cloud.
Cloud computing can be defined as the on-demand availability of computer systems or resources, such as computer power and data storage, with no need for a direct user to manage things. A significant number of financial accounting firms have already started using cloud-based systems in order to streamline their data.
Irrespective of whether you have just established your financial company or are in this field for years, you can use different cloud-based systems to access the data anytime, anywhere.
2. Diversity for Every Accountant
One of the most dreadful tasks for accountants is compiling and computing the information. However, with the advancement of technology, it has become easy for them to use a number of programs or software solutions to compile, manage, share, and compute data.
For Example, MS Excel can be used to calculate things, and an accountant can use MS Word to prepare official documents or financial accounting statements. Similar programs can be used for bulk work.
Accountants are now able to manage multiple and diverse tasks simultaneously and may be provided with better and more specialized roles depending on their performance.
3. Safe and Better Client Transactions
In most situations, financial companies have to provide specialized services to their customers. For example, they might be asked to provide a comprehensive platform for safe and secure transactions, and they have to do it. If you are a businessman working in the financial accounting field for long, you will have an idea that the client’s financial information needs to be secured.
In simple words, we can say that technology has made it possible for financial companies to allow their clients to process payments or transact money through safe and secure modes. PayPal and Payoneer, for example, are being used around the world over for this purpose.
We can say that with the advances in accounting technology, now we do not need on-site consultations as clients and accountants can now access real-time data remotely, edit, view, and fix statements, and can discuss projects through Skype, WhatsApp or web-hosted video conference. Thus, technology has left a good, positive impacts on finance and accounting.