If modern accounting firms want to deliver maximum benefit to their clients, then they must embrace all the possibilities that new technologies can provide them. In this day and age, what this means is that modern accounting needs to turn to the world of fintech to see what new products, solutions, and services the world of financial technology can provide.
So, what kind of new technology has already made a difference in the accounting sector, and how can fintech in accounting help firms to achieve their objectives and answer the needs of their clients. This article will discuss the role of fintech innovations in modern accounting, and explore how the INAA can help to implement these disruptive tools.
Blockchain
Blockchain (also known as distributed ledger technology) is a digital system that has great potential as a form of data storage for accountants. It simultaneously records asset transactions (such as money, land details, securities, etc) in multiple locations simultaneously, rather than in one centralised location.
The main advantage of this peer-to-peer-network of data nodes is that the accounts can now be accessed easily by all relevant stakeholders, including accountants, auditors, clients, and regulators. And for those worried about security, remember that blockchain tech employs advanced cryptography, as well as private and public keys for user authentication, to keep all relevant data safe.
Digital payments
Similarly, the newfound prevalence of digital payment methods is also a boon to those in the accountancy industry. There are now numerous digital payment providers out there who are capable of using solutions such as Payment Orchestration to help vendors streamline their payment options and manage their ingoing and outgoing payments, while also providing a variety of payment options and currencies for customers around the world.
All this is relevant to the accountancy industry because it has the potential to make the job far easier for firms around the glove. Digital business payments can be processed and reconciled far more easily — not to mention at any time of day from any location. Automatic audits, therefore, help accounts eliminate the more tedious minutiae involved in financial reporting.
Cloud-Based Accounting
With more and more businesses migrating away from on-prem facilities and infrastructures and moving instead towards cloud-based working methods, accountants should do the same and take advantage of cloud-based accounting solutions.
These services allow businesses to access their financial data at any time, from any location, with any device with an internet connection — which makes it easier for any stakeholder to access all the relevant accounts. Cloud-based accounting is also scalable, which means that accounting firms and accounting departments can add or remove users and features to account for changes in budget or company strategy as they see fit.
Automation
Artificial intelligence also has the potential to completely transform modern accounting. By automating more mundane tasks, accountancy firms can free up more resources and cut back on costs, allowing accountants themselves to focus on higher-level objectives. Chat-style interfaces can also enable accountants to pose queries to the AI, which can then dutifully provide relevant information and answers.
Keep your accounting firm competitive with INAA
At INAA we’re always trying to stay ahead of the latest developments in the world of accounting, finance, and tech, and we have the expertise to help modern accounting firms implement and integrate fintech into their existing stack.
So, if you’d like to learn more about how you can take advantage of these new technologies, then visit our official website and apply for your membership today.