The Future of Accounting Operations: Embracing Technology and Automation

The accounting industry has transformed from a tedious series of manual processes into a specialized field assisted by integrations and spreadsheets. 

But now, the world of crunching numbers, triple-checking calculations, managing client emails, and gathering documents via attachments, links, or—dare we say—fax, is edging its way toward new technological breakthroughs.

AI, cloud-based solutions, and platforms that assist with a multitude of tasks are all propelling manual accounting operations toward a future of automated tasks, organizational helpers, and tools that provide insights into a firm’s operations.

Below, we discuss how these pioneering technologies are helping accounting professionals with the (wait for it) more taxing aspects of their operations, helping them to grow their teams and place their focus on maximizing their clients’ experience.

How Automation Is Transforming Accounting Workflows

Automation helps accountants streamline daily tasks, and the most powerful transformation happening in automation is AI.

AI-powered automation enables accountants to place their attention where it is the most effective: managing the team, performing high-level analysis, and making decisions for the future of the firm. 

Automation is used to manage repetitive tasks like invoice processing and reconciliation, reducing errors while significantly increasing the rate and accuracy at which these tasks can be completed. 

Automated real-time monitoring and reporting, alerts, and notifications vastly improve daily workflow. As a result, collaboration between teams and communication with clients improve as well.

AI and Machine Learning in Accounting Efficiency

AI enhances decision-making by analyzing vast amounts of financial data, allowing accountants to identify trends that improve forecasting and strategic planning. By leveraging the increasing integration of AI-driven technology and automation, firms can make more informed decisions, optimize financial strategies, and stay ahead of market changes.  

AI and machine learning (ML) help firms save time in their accounting operations by automating redundant tasks and core processes related to payroll management and audit reports. AI streamlines audits by analyzing entire datasets instead of historical samples, improving accuracy and reducing errors, all while saving time and resources.

ML is used to study processes and learn from them. It is also used for predictive analytics, which empowers firms to better understand not only their own performance but also their clients’ unique needs.

Data-driven forecasting, client insights, and other ML-based information allow firms to leverage data to anticipate client needs, provide improved financial guidance, and take action to strengthen long-term client relationships.

Cloud-Based Solutions

Cloud-based computing, data storage, and other services are used for real-time access to client data and streamlining multiple processes. The cloud is used to help teams collaborate, to integrate with other platforms, and to automate the data that flows between platforms like client communications and bookkeeping solutions.

Cloud systems not only help provide a centralized view of data that flows from numerous separate platforms, but also avoid costly errors and prevent duplicate data from wasting the team’s time.

The cloud is a powerful weapon in protecting data security, reducing breaches, and strengthening a firm’s compliance. Cloud-based data can be accessed using role-based access controls, where people have administrative privileges only for information directly relevant to their job roles.

Enhancing Client Experience

Technology that supports improved client experience includes:

• AI chatbots that assist with client updates, shorten response times and reduce follow-up calls
• Client portals for self-assisted processes like document uploads and downloads, project updates, eSignatures, and other processes that boost client satisfaction
• Integrated emails and other client communications for fast response and to address all client concerns
• Centralized data to prevent overlooking important deadlines

All of these technological benefits improve transparency with clients, so they remain in the loop at every stage of accounting services.

Data Security and Compliance

Along with the convenience of managing client communication and document sharing online, cybersecurity risks also rise. This requires strong protections like multi-factor authentication to verify who is logging into accounts. 

Firms must ensure client information is protected through regulated procedures and report on what steps are taken to ensure safety and security throughout all internal and external systems. Cloud platforms share some of this security responsibility, providing state-of-the-art protective measures for firms using their technology platforms.

Project management platforms help strengthen security through encrypted storage, secure client links, and data tracking for audit reports throughout the year.

Case Study: Providing AccountAbility the Features They Can Count On 

Our client, AccountAbility (yeah, we love the name too!), was struggling with a disjointed, outdated software suite until they found Canopy.

This top-tier accounting firm had worked with service-based businesses in 48 states for over 24 years. They were ready for a boost in their client communication, document management, and overall daily operations. Canopy provided the platform they needed and helped AccountAbility reduce annual costs by $50,000.

Preparing for the Future: Steps Firms Can Take to Stay Competitive

With technologies like AI, cloud solutions, and platforms that provide powerful automation, the future is wide open. Firms looking to embrace change in order to scale their operations can still provide clients with an uncompromising quality of service.

To stay ahead of competitors:

• Take an honest look at your current areas for improvement.
• Identify gaps in service and challenges in efficiency.
• Research emerging technologies that can help you improve in those areas.
• Evaluate productivity platforms and what they can offer.
• Consider what integrations your firm needs and whether those platforms offer them.
• Factor in security, compliance, and client portal features.
• Compare these offerings to Canopy.

Sure, we took that opportunity for shameless self-promotion, but can you blame us? Canopy views the modern solution for managing your accounting operations as a firm-wide operating system that brings all aspects of your business together in one place. Want to see what that looks like? 

The future is yours, but only after you make the first move.

Start your free trial today!