To keep a close eye on cash flow, most companies opt for some form of accounting software. By tracking money coming in versus money going out, accounting departments use accounting solutions to spot trends, uncover losses and otherwise make necessary financial decisions and adjustments to not only remain in the black, but to stay open for business.
Some think of accounting software as the single-user, basic account balance program that can be purchased online or from a store shelf. While the primary functions of payroll, invoicing, AR, and AP are vital functions of accounting software, the future of accounting will involve far more capability through the use of emerging technologies.
Next-generation accounting software will go far beyond essential account balance functions, so here we look at some of the technological advancements your financial team will be able to leverage in 2020 and beyond:
Integrations are the future
The days of individual software suites attempting to be all things to all people are effectively over, and let’s all rejoice their passing. If we look at the technologies of decades past, one concept made abundantly clear is that no software suite has ever succeeded in doing everything – no matter how hard it tried.
Software packages were often developed with specific core functionalities, but to compete with similar packages, developers threw every bell and whistle on top, typically resulting in bloated price tags, unwieldy user interfaces, and slow processes.
Luckily, cloud computing has largely turned this development strategy on its head. Instead, modern software packages are developed in strategic partnerships with complementing solution developers, which allows more focus on a core product and leaves the extra functions third-party compatible solutions to supplement the core offering, known as integrations.
The benefits of third-party integrations are hard to ignore: lower costs, streamlined core products, and the ability to pick and choose combinations for the leanest technology solution.
The key takeaway here is that your accounting software needs to be able to work well with other business software solutions, and if it doesn’t, you should consider one that does.
Real data analysis
Accounting software of today and beyond features robust analytics tools that make old accounting solutions seem primitive. Many accounting products on the horizon will feature AI-enabled data analytics, allowing management to draw upon machine learning analysis and forecasts that would either have completely eluded or demanded tremendous amounts of time of human accountants.
Additionally, with your accounting software integrated with all of your other business solutions, the analytic powers at your fingertips will draw automatically from all data silos in your operation.
Delivering on the promise of automation
Automation has been a hot topic, but something of a pipe dream for decades – finally, it appears to be a reality. Generations of accounting suites have boasted automation capabilities but often fell short of real automation due to the cumbersome setup that many elected to skip them altogether.
This is where machine learning re-enters the conversation. Where once you had to struggle through tedious setup processes for enabling automation in your accounting software, machine learning is a game-changer.
New features in forward-thinking accounting software track the usage and repetitive processes to learn what you do without you having to go out of your way to configure those tasks. So, rather than digging deep through counter-intuitive user interfaces to tell your software what to do, the software itself tracks what you do and learns to do it for you.
Which cloud accounting package do you need?
Voted #1 Accounting Software Product in Customer Satisfaction by G2 Crowd, Sage Intacct is built for finance professionals by finance experts. Through automation of your core financial processes with advanced functionality and accessibility in the cloud, you get everything you need to increase productivity and make timely decisions to drive your business forward.
As a Sage Intacct Partner, e2b teknologies is a best-in-class provider to move your business to the cloud.