The Future Of Accounting: Automated or Human?

The accounting profession is undergoing a major transformation due to the rise of automation and artificial intelligence (AI). Many routine tasks that were once done by accountants are now being automated, leading to concerns about job displacement. However, experts believe that automation will not replace accountants altogether. Instead, it will free up accountants to focus on more strategic and analytical work.

One of the key technologies that is driving the automation of accounting is intelligent document processing (IDP) software. IDP software can automatically extract data from documents, such as invoices, receipts, and contracts, and use this data to automate tasks such as accounts payable, accounts receivable, audits, and procurement. Such automation is helpful to accountants and accounting firms looking to work more efficiently and streamline their operations.

Where does this intelligence leave accountants, however? As software becomes more advanced - instantly spotting errors, erasing duplicates, and performing complex tasks in seconds - humans are threatened. But they don’t need to be. After all, humans must adapt and put on the helmet that allows them to be the link between data and clients. Accountants of the future will need to be tech-savvy to keep up with the latest trends and technologies. As more businesses move their data to the cloud, accountants will need to be proficient in using cloud-based software to provide clients with up-to-date financial analysis.

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‍Opportunities, not threats

While automation can help accountants reduce costs and improve efficiency by eliminating tedious and time-consuming manual tasks, software is still unable to take on more strategic tasks that require creativity, collaboration, and ingenuity, such as business analysis and risk assessment.

Accountants can use their unique human skills to transform data insights into financial planning and reporting. In an integrated environment, they can collaborate with other business units to use financial data to drive innovation, build resilient supply chains, and develop business management plans that promote growth and continuity.

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The role of IDP software

IDP software is a valuable tool that helps accountants improve efficiency, accuracy, compliance, and customer service. As the use of IDP software continues to grow, it is likely to become even more important in the accounting profession. Below are some of the ways that IDP software is currently being used in the accounting field, and how accountants can leverage them:

• Automating accounts payable: IDP software automatically extracts data from invoices, such as the vendor name, invoice number, amount due, and payment terms. This data can then be used to create payments, track payments, and manage vendor relationships.
• Automating accounts receivable: IDP software can also extract data from customer invoices. This data allows accountants to manage customer relationships and create a more positive impact.
• Reconciling bank statements: IDP software can be used to automatically extract data from bank statements, such as the date, amount, and payee of each transaction. This data can then be used to reconcile bank statements and identify any discrepancies.
• Auditing financial statements: A bank reconciliation statement is meant to compare the balance of a company's cash account in its accounting records with the balance shown on the bank statement. Accountants then analyze this data to identify any potential errors or irregularities.
• Risk assessment: IDP software can be used to assess the risks associated with a business, such as the risk of fraud or non-compliance. This can help businesses to make better decisions about how to manage their risks.

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Tomorrow’s accountant is a strategic one

The role of accountants is evolving, and the skills and responsibilities of tomorrow's accountants will be different from those of today. Accountants will still need to have a strong foundation in financial concepts and analysis, but they will also need to be proficient in using new technologies and have a deep understanding of the business.

Accountants will play an increasingly strategic role in businesses, working with other departments to make better decisions. They will also be responsible for managing data and using it to identify trends and opportunities.

The future of accounting is likely to see a continued rise in automation and AI. However, this does not mean that accountants will be replaced by machines. Instead, accountants will need to adapt to the changing landscape and embrace new technologies.

By leveraging IDP software and other automation tools, accountants can free up their time to focus on more strategic and analytical work. This will allow them to add more value to their clients and help businesses succeed in the digital age.

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‍About Invofox

Invofox is an intelligent document processing (IDP) software company that helps businesses automate the process of handling invoices, receipts, and other documents. The company's AI-powered platform can automatically extract data from documents such as invoices, bills, bank statements, and tax forms and validate the extracted data for compliance.

Invofox's customers include businesses of all sizes, from startups to large enterprises. The company's software is used by businesses in a variety of industries, including software, accounting, finance, logistics, and construction. 

If you are looking for a document processing software solution that can help you automate your document handling processes, improve accuracy, reduce costs, improve compliance, and improve customer service, get in touch.