The accounting profession is rapidly transforming partially due to the advanc...
The accounting profession is rapidly transforming partially due to the advanced technologies. Required: Part One: Discuss how do the advanced technologies have impact on the accounting function of a company? (50 marks) (Word limit 500, 10 marks deduction for over limit) Part Two: Think of at 2-3 accounting tasks that can be automated by using Robotic Process Automation ("RPA"), and describe how the tasks can be done by RPA. How does a company make use of these automated accounting tasks to improve the operation efficiency? (50 marks) (Word limit 500, 10 marks deduction for over limit)Part One: Discuss how do the advanced technologies have impact on the accounting function of a company? (50 marks) (Word limit 500, 10 marks deduction for over limit)
Answer to the QuestionPart oneThere has been a tremendous technological revolution in the past few years that’s impacted various aspects of business operations. Accounting has also been affected by this change and has experienced a dynamic shift in terms of productivity.Stacks of papers have now been replaced by apps and analytics, helping accountants make the giant leap from task-oriented projects, to becoming modern-day business advisers.Access to the smart software programmes that can perform tedious tasks in a short amount of time, along with automated tools has made financial accounting operations efficient, organised and more productive. Read on to learn how just how much this industry has been impacted by technology.While new developments have been immense, certain new advents have restructured accounting processes. Cloud-based systems are a popular technology in accounting that are used by various firms to streamline information and facilitate easy access. This way, accountants can access important data from anywhere, unrestricted by time and space through web. This also facilitates the analysis of data in real-time as storing large files is now possible through cloud computing which offers unlimited storage space.Accounting apps and analytics are new technologies that have surfaced in past few years. These apps allow accountants to conduct operations such as accessing financial data and tools on mobile devices. Some of the most popular ones used by small business owners are QuickBooks, Xero, FreshBooks and more. These tools remove human error and provide businesses with timely financial information and cash flows, which can be produced by simply filling in a form or at the click of a button, streamlining operations and reducing administration costs.The impact of technology on accounting has become so crucial that it has diversified the role of an accountant. Considering that major time-consuming tasks can be done at the click of a button, accountants can now focus on analysing data to make better business decisions and strategic plans for their clients. Industry analysis is now a smooth process as everyone is able to view and interpret data remotely. Enhancements in accounting software and application have made the work of accountants specialised.Consumer-friendly applications also benefit non-accounting professionals who can now understand financial dealings and structures. One of the main aspects of accounting - client and accountant interaction - has also changed as on-site consultations are no longer required and both parties can access real-time data simultaneously online. This makes conducting business operations easier, and client gets to enjoy better services, making it a win-win situation for all.Social media is among the most prevalent technologies in accounting and is reshaping many functions. As a global platform of engagement, it has caught the eye of big names in industry such as Gary Boomer, CEO of Boomer Consulting Inc. who is using social media to connect with current and potential clients. Firms are constantly seeking new ways to market themselves and adding social media to their business development strategy has helped many target their goals, Accountants must embrace all new changes that technology bringsPart TwoRobotic process automation, or RPA, has gone from strength to strength in the last few years, This, combined with a growing need for organizations to invest in new technologies that will improve their operations, has led to a steep rise in the market.1. Customer ServiceRPA automation changes how businesses can deal with their customers. Namely, it makes ticket resolution significantly easier and faster.Rather than having an employee manually go through the timely process of seeking information for customers on their own, businesses are more frequently using RPA to automate this process.Companies use RPA to automate every step of validating the data associated with a customer’s profile and integrates the data sets necessary, removing the need for a human worker to switch between applications.Customer service RPA in actionA company is receiving a stream of complaints, but until now has been dealing with them manually, one at a time, with a human agent.They install an RPA bot, which is programmed to sort and process the information gathered from the complaints into determined categories.If complaints fall into categories that have pre-determined courses of action, those actions can then be undertaken by the bot.2. Invoice ProcessingInvoices can be difficult be process. When dealt with manually, people can expect to deal with file formats that are disparate, awkward email attachments to deal with—these routine tasks take up a lot of time and energy.Invoicing would be considered a prime candidate for automation. This is because invoicing by it’s nature is a rules-based process; it’s simply reporting a state of affairs to the customer, which makes it a perfect job for an unattended RPA bot.Invoice RPA in actionThe way it works is that a bot is programmed to check on a particular folder. When an invoice file is put into the folder, the bot is alerted, and proceeds to read and document all the relevant necessary information and disseminate it to where it needs to go.7. AnalyticsRemoving the human element from data gathering is also important when it comes to providing you with data analytics and insights.The amount of data in business provides great opportunities for valuable insights for what can be improved within your processes.For decision makers, quality data is an important tool. Unfortunately, because of human error, these business leaders can have to deal with data that is of poor quality.Every company expects greater efficiency in its processes to increase its productivity and thus its profits. Thanks to the digital transformation this task has been simplified, especially with the arrival of Robotic Process Automation or RPA.To keep customers happy it is necessary to give them effective solutions and quick responses. With Robotic Process Automation it is possible to do it, as these systems can sort the queries into categories so that customers reach the care agent who will resolve their problem. In addition, they can provide initial responses to these that may resolve their concerns.Another Answer for Part OneOne of the most important advancements IT and the rise of digital and cloud based infrastructure had for accounting professionals radicates in a company’s capability to create computerized systems and feed them continuously with their records about financial transactions. The clear tracking of these movements, without having to depend on hand written reports or manually filling spreadsheets is a blessing for both companies and accountants. And these tools can also generate reports within the desired filters and views, in mere seconds.Better FunctionalityAccounting departments have managed to improve their delivery times for gathering accounting information and financial information. And in doing so they improved their reporting capabilities as well as their operations analyses, giving management a clear and transparent view of a company’s state of current operations. Since the utilization of computerized systems, and the rise of digital transactions, the sheer number of reports has grown, from market share reports, to departamental profit or loss ones. More pertinent and clear reports give the company’s a better chance of making the right decision.Near-Instant ProcessingSoftware solutions with accounting systems empowers accountants to process extremely large amounts of financial information, and analyze it fast through their accounting system. Less time is needed in order to close each accounting period, this happens due to faster processing times for each transaction, and the general use of cloud computing and digital systems that have almost erased the need for physical data entry.Important financial events, like end of the year closing periods, can take a big toll on the accounting department of a company. Some accountants may need to use extra hours in order to meet their deadlines, which leaves the talent pool extremely tired and makes the company incur in higher labor expenses. Shortening the time needed to process, thanks to new technologies, helps individual employees work better and in a more healthy way, as well as lowering costs for the business.Enhanced AccuracyMost accounting technology have internal checking features to help their users guarantee every single transaction and account is balanced correctly before preparing financial statements. These tools won’t allow the posting of new journal entries that are out of balance, establishing a trustworthy structure of financial information.Some accounting softwares even come with layered access permits, reducing the amount of people that have an entry to sensible information. As well as employing new cybersecuruty features, like blockchain. Having a hierarchy of data access improves the quality and accuracy of the financial statements, allowing only qualified supervisors to make adjustments to important projects.Improved Communication via ReportingOne of the most important responsibilities an accounting firm or department has is to report back with the financial data. Stakeholders and investors can have better reports delivered to them, middle management can access relevant data faster, and even clients for the company can benefit to some degree of improved decision making when being explained how that company’s fees function, So Accountants must embrace all new changes that technology brings now a days.
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