8 Technology Terms every US CPA should know in 2022
We are in 2022 and there is nothing technology has not done for humanity and accounting is not an exception. With the emergence of new technologies taking the center stage of every domain, particularly accounting and finance, global certified accountants like US CPAs are faced with new challenges in managing their tasks as it involves the touch of technology and automation. This is nowhere indicating that technology has taken over an accountant’s role but trying to reduce repetitive tasks and enable focus on higher goals and enrich expertise in the field. To keep up with the ever evolving accounting world, you need technology to make better decisions and strategize your operations for a challenging future.
5G
5G is a fifth generation wireless technology and it is expected to be 10 times faster than the 4G network. A research by Deloitte shows over 45% of Europe’s population use smartphones to perform professional routines and this has set a trend for the demand of smartphones. Since accounting involves huge data sets, it needs digital capabilities to analyze and transfer at a quicker pace for informed decision making. This keeps accountants like US CPAs ahead of the game in the market.
AI/ML
A Forbes research suggests that the AI/ML deployment in the accounting industry can boost 40% performance of the firms. Hence US CPAs need to harness the power of AI/ML to delegate redundant tasks to focus on higher organizational goals of conducting business partnerships and advisory services. CPAs can adapt AI/ML into operations to make strategic decisions based on the results achieved by the software and automation technologies.
Big Data
US CPAs need to care about IoT (Internet of Things) as it helps them to obtain real time data to build accurate budgeting, cost planning and forecasting. IoT majorly helps CPAs to understand the product of the company as well as its customers to minimize risk and enhance performance and growth.
BOTS
BOTS is a robotic software application that emulates an accountant’s activity on a large scale. BOTS helps US CPAs determine and categorize huge data sets and try to inform about where the data is coming from and the source to make informed decisions. They can also adapt to the accountant's behavior and understand the various human inputs to better decision making.
CRM (Customer Relationship Manager)
While a company may not fully be equipped in conducting mergers and acquisitions and estate planning besides others which requires the help of a US CPA. However, US CPAs need some technical abilities to make it possible. Customer Relationship Manager is one of the most in-demand software that is used by over 60% of accounting professionals to derive tangible data to drive decisions and better serve customers online quickly capturing data from online visitors to keep marketing and sales performance of the company on track.
Blockchain
Blockchain has a great reputation in the accounting industry as it has the power to assist in supply chain optimization. US CPAs can leverage blockchain to help maintain transparent, immutable and accurate accounting information and records. It serves them to streamline processes and audits which earlier in the traditional way was fraught with errors, hence grab this revolutionary tool now.
IoT
US CPAs when called to advise and lead a company’s accounts and financial health, they need IoT to connect human minds with things. Granting devices the ability to probe, collaborate and interact with other devices to drive real time data-driven decisions to sharpen budgetary skills, improve reporting standards, cost planning and detect fraudulent activities while crunching time and resources.
ERP
For accounting professionals like US CPAs, the past is vitally important to predict growth and performance of clients and this is where Enterprise Resource Planning (ERP) software takes its due place. The software helps accountants to record, track, predict and streamline data to support effective decision making and streamlining accounting processes.
One potential way of getting hands-on these new-age tools is to choose the best CPA Review Institute in India where you would be strategically informed by leading experts and industry practitioners. CPA classes can serve a bottomline to know how these upending digital capabilities can support your business in an era of competition and innovation.