Digital transformation in accounting is rapidly evolving and offers many advantages for accounting practices. Large accounting firms were the first to adopt these technologies and are leaders in digital transformation innovation. However, smaller accounting practices are now increasingly seeing the value of these solutions and are also getting on board. Digital transformation in accounting can have many applications and advantages, especially in routine and rules-based processes.
Accounting practices face many common challenges, such as hiring and retaining talent, keeping up with technical advancements, implementing AI, and dealing with globalization and competition. Cybersecurity concerns and work from home issues also add to the challenges. Accounting practices need to upskill and provide additional services to clients such as payroll, BI and analytics, and ERP management solutions.
The use of technology tools for deploying digital transformation services is at the core of what digital transformation in accounting is. Robotic process automation (RPA) is the number one tool used for digital transformation in accounting, which involves the use of software bots that perform tasks like a human would. RPA bots can perform various tasks such as bank and credit card reconciliations, data entry and extraction, running reports, and many administrative tasks. Cognitive AI for reading documents and learning over time, as well as conversational AI, are also commonly used in accounting practices.
The advantages of digital transformation in accounting include addressing many of the challenges faced by practices, such as keeping and retaining talent, reducing costs, and driving up profits. Digital transformation in accounting helps practices offload redundant routine work to bots, freeing up time for higher value tasks. RPA and bots can also capture data nonstop for clients, assist them in Business Intelligence efforts, and drive down costs.
Digital transformation managed services can help smaller accounting practices with limited budgets. The large accounting firms often purchase expensive enterprise and seat licenses directly from digital transformation vendors and hire their own engineers to build and run systems for them or contract with expensive consulting firms to provide this service. However, smaller accounting practices can leverage digital transformation managed services to stay competitive and benefit from the advantages of digital transformation without incurring these high costs.
Conclusion
Digital transformation in accounting offers many benefits, especially in routine and rules-based processes. Accounting practices need to overcome challenges such as hiring and retaining talent, keeping up with technical advancements, implementing AI, and dealing with globalization and competition. The use of technology tools like RPA, cognitive AI, and conversational AI can drive down costs, drive up profits, and free up time for higher value tasks. Smaller accounting practices can leverage digital transformation managed services to stay competitive and benefit from the advantages of digital transformation without incurring high costs.
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