Accounting information systems (AIS) have become invaluable to all professionals who handle financial data. Where once accountants had to rely on their own experience and resources, this technology can now step in and process faster and without human error. Our piece titled ‘Three Examples of How an Accounting Information System Works’ notes how it makes input, processing, and output much more streamlined and straightforward. Overall, a reliable AIS is a tool every professional in the industry should have.
Now, the AIS is entering a new stage of its evolution, with new technology emerging that promises to heighten its capabilities and advance accounting in the digital age.
Here’s a quick overview of the stellar software that’s developing.
Automation
While accounting requires critical skills and insight, much work is still involved—including balancing accounts, reconciling errors, and similar jobs. Automation in new AISs can cut away these repetitive tasks, taking over tasks such as checking and copying financial information across systems. This means financial experts have more time to focus on more cognitive-heavy tasks like advising clients on reaching their financial goals. One major function such systems can handle is revenue management. Take Softrax’s revenue management solution, which can simultaneously account for exchange rates, tax, and payment data to ensure precise and timely processing. It can also integrate with any existing CRM and CPQ to trigger bill and revenue recognition. These features can simplify revenue management and allow companies to progress toward continuous accounting.
Big data
AISs can now also process far more big data than they were previously capable of. Because of this, financial experts have more information to draw out pivotal insights and patterns, allowing them to generate better reports for their clients, offer enhanced risk management tactics, and make better financial forecasts. Accountants, auditors, and other professionals may want to use enterprise data management and analytics platforms like Cloudera, which can transform complex data into clear, real-time insights. Even better, it’s partnered with the distributor Tech Data to expand its features. Cloudera now offers two new core services: Data Flow, which allows financial experts to connect to any data source with any structure and deliver it to their chosen destination using a low-code authoring experience, and Stream Processing, which can create hybrid streaming data pipelines for a stateful processing solution. With these new organizational tools and the breadth of data, financial experts gain an improved proficiency that can elevate their clients’ financial performance.
Artificial intelligence
Artificial intelligence has recently made headlines in the technological world, promising to significantly disrupt many major fields across multiple industries. The accounting industry is no exception. Machine learning, a subset of AI, can be particularly potent—this technology can determine underlying paradigms and rules based on given data points and then act within those mandates to deliver or find content. In an accounting context, experts can use this feature to help classify transactions and predict forthcoming ones, refine monetary data models, and identify anomalies to set financial patterns within an AIS. Booke AI is an excellent example of machine learning capabilities, as it can both find and correct errors in your bookkeeping and study your processes, ensuring that your transaction categorization grows more consistent and exact as time goes on.
Cybersecurity
With all this new and more specific data that technology can attain for accounting experts, there is a danger that more sensitive information can be stolen. Fortunately, cybersecurity software has also made rapid strides to ensure data safety. The cyber protection company Malwarebytes exemplifies this with its award-winning endpoint protection product that can provide holistic shielding from consumer threats. Financial experts can rest assured that any digital hazards to their AIS will be flagged early and dealt with, allowing them the peace of mind to concentrate on their accounting and auditing work.
Accounting information systems are evolving by the day. While tech can never replace financial professionals’ competencies, it can help elevate their accuracy and help them attain a higher level of expertise.
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