Also known as ‘FinTech,’ financial technology is an umbrella term for the designing and delivering of financial services using the latest technologies, such as AI, big data and machine learning. And, as all does technology does, it continues to evolve.

Helpful as this technology is to the financial sector, it can also be used to great effect in accounting, meaning that professional accountants no longer have to rely on paper-based ledgers, manual data entry and rudimentary spreadsheets to manage the financial records of their clients. Coming with a number of challenges, from the frequency of errors and delay of financial reporting, to time-intensive tasks and a heightened risk of fraud, among others, the advent of technology in this sector, has been a godsend to most.

Let’s take a closer look at the impact financial technology has had on the accounting sector:

How FinTech innovations are changing the way accountants work

Among the many changes financial tech innovations have brought to the accounting sector, perhaps the one of most note is how routine and highly repetitive tasks have become automated, saving professionals time and money, and increasing accuracy, too.

Continually evolving and helping to transform the collection, processing and analyzing of financial data, here are just some of the ways in which fintech is changing and redefining the way in which accounting records are both maintained and used:

  • Accounting software with automation, AI and RPA

Helping to change the very face of accounting, modern accounting software is fully kitted out with artificial intelligence and robotic process automation capable of handling a wide range of highly repetitive tasks, such as invoice processing, data entry and reconciliation. Reducing the risk of human error, they have also enabled accountants to focus their professional attention on other activities of higher value, like analysis and strategic financial planning.

  • Accounting software based in the cloud

Revolutionizing the storing and assessing of financial data, cloud-based accounting software has enabled data to be stored securely in the cloud, rather than in localized machines. Making the sharing and accessing of data possible from quite literally anywhere, accountants can collaborate with their clients with ease and convenience. Businesses are also able to make decisions that are better informed for the purposes of financial reporting, thanks to their access to continually updated information.

  • Blockchain technology

This type of tech has also reshaped a variety of accounting practices, providing accountants with a ledger of financial transactions that are both secure and unchanging. Helping to minimize the risk of errors and fraud, blockchain technology also streamlines the auditing process; making them much more transparent and highly efficient.

  • Big-data analytics

Unlocking a whole world of possibilities, accountants using big-data analytics are now able to analyze huge swathes of datasets, and easily identify trends, insights and anomalies that they simply weren’t able to see before. In terms of fraud detection, risk assessment and the identifying of opportunities to optimize revenue and reduce cost, these analytics are especially powerful for accountants.

  • Innovations in tax software

With the introduction of user-friendly interfaces, mobile accessibility, A—driven optimization and stronger security measures, innovations in tax software have revolutionized how accountants prepare taxes for their clients. Simplifying tax compliance, such advances also help to improve efficiency and accuracy.

With the role of accountants constantly changing thanks to fintech, no longer are they seen as mere number crunchers; they have become a powerful weapon for businesses with their newfound capabilities to advise on strategic financing.

Now able to wear more than one professional hat, accountants can help your business become more efficient and meet client demand with ease. If you’re an accountant with a busy practice, why not outsource some of your requirements, after all, no one knows better than you how helpful a good accountant can be!