People rode with a large map in their hands, checking it regularly to see when the next turn was supposed to be. Now we wonder how obsolete this common habit has become. Technology has a way of doing this by making the mundane obsolete. Classic accounting is a good example. What was once considered the most efficient way to process financial data using spreadsheets now manually seems as old-fashioned and risky as driving a car with a map in your hand? When spreadsheets first launched 40 years ago, they changed the game by replacing the previously used 10-key number pad, paper book, and sharp pencil with an eraser. Each interruption resulted in process improvements that increased efficiency, reduced the likelihood of errors, and enabled more empathetic and productive work practices.
Conventional audit procedures focus on verifying the content of annual financial statements and preparing a client’s annual financial statements. It is essentially a one-time retrospective assessment to protect against intentional or unintentional misstatements. However, actions that have a material impact on a business, such as events such as stock or derivatives trading, mergers, acquisitions, and credit programs, should not be recognized in a company’s financial statements until the impact is realized. So, what are your alternatives?
According to the so-called Big Six accounting firms operating in Asia: Arthur Andersen, Deloitte Touche, Ernst & Young, KPMG, Coopers & Lybrand, and Price Waterhouse, soon to be merged, traditional auditing practices have lost relevance to the terms of their customers. They also understand the importance of “continuous business review methods” that focus on the entire organization and the threats it faces. And to varying degrees, everyone is driving this transformation in their business. However, it can be argued that their accountants used similar techniques earlier. They would have been better able to discern recent business problems in Asia.
Today’s businesses demand real-time data on their preferred device. You are looking for seamlessly interconnected systems. Accounting not only lives well but is also developing tremendously. Real-time connected information at the push of a button on any device, once unthinkable for small businesses when the technology revolution was still in its infancy, should now be a crucial part of our business systems, processes, payment, and security. Sign contracts, save documents online, and pay bills securely? Today’s accounting system consists not only of entering debit and credit data but of end-to-end network solutions.
Taking advantage of the Cloud, automation, and AI
Consider this: By improving communication and collaboration, centralizing data management, including cloud technology, dramatically eliminates waste and reduces costs. Collecting, accessing, sharing, and analyzing data is more accessible with standardization and a consistent data sphere. As data silos are broken down, visibility improves, and data quality improves rather than deteriorates as data volume increases. Similarly, automation reduces costs and improves efficiency by eliminating tedious and time-consuming manual steps (such as data entry and three-factor matching) and human error. It allows human accountants to focus on strategic activities related to creativity, collaboration, and innovation that AI currently cannot reliably perform.
The “hard” analytical work, on the other hand, can be done by AI. By translating raw data into a more intelligible format and establishing established linkages across diverse data sources, AI can create symbiotic partnerships with humans, offering a “what” that humans can further refine into “how” and “why.” New ways to explore, analyze, and share video game data and new process improvements and the integration of financial and strategic planning will be made possible by virtual, augmented, and mixed reality technology. According to a Robert Half report, 71% of US managers use or plan to employ virtual reality in the next three to five years.
Accountants, for example, can apply their unique human abilities to turn high-quality data into more efficient financial planning and reporting. You may work across departments to communicate, leverage financial data to drive innovation, build more resilient and agile supply chains, and establish business management strategies that enable growth while ensuring resilience and continuity in an integrated environment.
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