How Fintech Is Transforming the Accounting Industry
Date: 29 October 2021
FinTech is changing the way businesses manage their money and approach their bookkeeping for good – there’s no doubt about that. New software and advancements in financial technology like cloud-based bookkeeping, and forward-thinking initiatives like Making Tax Digital (MTD) are changing the game – but does this spell trouble for accounting professionals?
In this article, we look at some of the most prominent ways fintech is transforming the accounting industry and what this means for businesses and their accountants.
Unprecedented access to data
Access to data is possible in ways never seen before, and one of the biggest catalysts in this shift is the emergence of cloud-based bookkeeping software. Financial information can now be tapped into at any time, from anywhere in the world (with a decent internet connection), by anybody who has access.
In the airport waiting to catch a flight? No bother. Working remotely? Not to worry. Cloud accounting means geography is no longer a limitation on account management and reporting.
Automation is levelling up the game
Artificial intelligence and automation are two other key drivers of fintech-inspired change within the accounting industry right now.
Automation in particular means that processes like credit control, forecasting, invoicing, cashflow reporting and reconciliation have become significantly less manual and therefore notably less time-consuming. This, of course, frees up time and resource and gives businesses and their accountants more breathing space to don their strategic hats and take a more calculated approach.
Productivity over reactivity equals better business decisions
With access to real-time data and reports and more accurate forecasts and cash flow analysis, as well as streamline automation, businesses get the upper hand. With all of this on their side, business owners can become proactive rather than reactive, planning ahead and putting contingencies in place and budgeting better.
Fintech gives businesses and their accountants a far clearer look into the future, which makes for more informed financial decisions across the board.
So where does this leave accountants?
The skillset of accountants is evolving
Given how fintech is helping business owners become more proficient at managing their finances and bookkeeping, you’d expect this to strike fear amongst accountants everywhere. However, when you put a more positive spin on the matter, it’s quite the opposite.
For both those working in practice and in industry, fintech absorbs a lot of the arduous admin work accountants have historically been tasked with, replacing it with more deep-diving strategic thinking, forecasting, and advising.
Accountants now have the time and headspace to take a more analytical approach to their role, with some perhaps even evolving into more consultancy-based capacities as a result.
Fintech is great news for businesses, and it certainly doesn’t have to mean bad news for accountants either – it’s simply turning tradition on its head.
Fintech is an exciting tool that will help those on either side of the fence become more streamlined and efficient when implemented well, transforming both profession and service.
Article written by Pandle – Intuitive and easy to use accounting software.
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