Running an accounting firm requires maintaining records, managing finances, staying up-to-date with tax laws, researching information, preparing accounting data, and much more.

 Traditionally, accounting and tax professionals used paper and pen-based methods to calculate or record any finances manually. It often made routine tasks tedious and time-consuming.

 However, the advent of modern-day technology is dynamically reshaping the face of the industry. Various technological advancements, especially cloud and artificial intelligence, has helped to minimize mundane tasks. It further enables accountants, CPAs, and other financial professionals to focus on their core competencies, creating a positive and modernized impact on any accounting firm.

Here are 6 ways explaining how cloud and artificial intelligence improve the productivity of accounting firms:

1.  Improved Remote Working

With the recent impact on the work processes due to pandemic, accounting firms around the globe are looking for ways to adjust to the change. Remote working has undoubtedly come to the rescue at such a time. However, it is crucial to find the best technology to optimize the system.

 Adopting cloud technology allows any time, anywhere, access to the business data from any internet-connected device like smartphones, laptops, or tablets. Hence, there is no need to travel back and forth from the office to complete any task. It also increases the accessibility of the accounting firm so that it can serve clients from any corner of the world. It improves the productivity of accounting professionals by saving them traveling time.

 Additionally, AI (artificial intelligence) improves the remote working process by creating a virtualized accounting environment by analyzing the working pattern of accountants. It examines human behavior and helps develop policies to fit the requirements of employees and the company accordingly.

2.  Better Data Management

The role of accounting professionals is no longer restricted to bookkeeping and tax filing tasks. With the advancement of technology, clients are now expecting more from them, such as financial advice.

Hence, as the work is increasing, the amount of data is also growing.

Moving the business data on the cloud or hosting accounting software ensures there are no hardware or storage restrictions in the process. Cloud hosting providers offer scalable resources, such as the number of users that can access the system, required RAM, and storage space.

Therefore, an unlimited amount of data can be stored without any limitations. Following that, AI governance helps to sort this massive amount of unstructured data. As all of the information is stored in different formats, procuring anything from it becomes difficult. AI processes the data with the help of machines with integrated APIs for faster and more efficient workflow.

3.  Automate Manual Tasks

An accounting firm needs to manage records, books, and other financial information every day to stay ahead in the market. However, manually keeping notes and storing the invoices, bills, payrolls, and more becomes a tedious task. Even though there are many accounting tools and solutions that ease the task, integrating different applications might take a toll on the performance of the software if it is hosted on a local system.

The use of cloud computing ensures seamless integration with any number of add-ons without compromising the performance of the system. For example- QuickBooks can integrate with TSheets (to track billable hours and time), Drake Software (to export financial information for tax filing), Method:CRM (for customizable CRM), and Bill.com (for billing process management).

Moreover, AI provides an augmentation of labor-intensive tasks with automation. It automatically extracts the required information from any document and inputs it into the right field. It analyzes the pattern and optimizes results with each job. This process eliminates most of the tedious tasks so that accountants, CPAs, and tax professionals can focus more on their core competencies, thereby improving their productivity.

4.  Advanced Security

The confidentiality of data is one of the major concerns for any accounting firm. Most of the accidental threats or cyber-attacks like fires, malware attacks, unauthorized access, and more can compromise the security of information. However, the advancement in technology has helped to mitigate the impact of such threats.

Cloud technology might seem like an unsafe option for most of the companies, but it is essential to note that most of the reliable cloud hosting providers implement many security standards at the virtual and physical levels to avoid such attacks. Some of the most prominent measures include: 

●     248-bit encryption

●     Anti-virus and anti-malware system

●     Internal and external firewalls

●     Multi-factor authentication

●     Intrusion Detection and Prevention System (IDPS)

●     DDoS prevention

●     CCTV surveillance

●     On-premise security personnel

●     Fire-alarms and biometric scanning

Additionally, to complement these standards, artificial intelligence is used for risk analysis of any system. It helps to detect any potential threats and fix them in a timely manner. It provides a line of defense against errors causing disruptions in the workflow.

5.  Cost-Effective Solutions

The cost of setting up and managing the accounting firm is massive. One requires infrastructure and staff to house and manage all the resources.

However, if the accounting system is shifted to the cloud, it becomes the duty of the cloud hosting provider to take care of all of the hardware and software resources. This process eliminates the need to hire an additional team to manage IT-resources. Most of the cloud hosting providers also offer pay-as-you-go pricing plans so that accounting firms can only pay them as per their usage.

Moreover, the use of AI helps to review expenses as per the budget of a company. It helps to cut down any unnecessary finances so that accounting professionals can invest the same money in tools and solutions that can help them improve their efficiency.

6.  Real-Time Insights

The decision-makers require real-time updates to the work process and business data to run a successful accounting firm. They further need to analyze financial situations in order to serve their clients better.

 Hosting an accounting system on the cloud allows managers and heads to monitor the performance of each employee. They also get regular updates on the stocks, bills, invoices, dues, and payrolls through a centralized dashboard.

 Furthermore, the integration of AI with the system provides comprehensive insights that help forecast and predict the client’s company’s growth rate and other financial reports. It prepares the accountants to take the required measures in order to stay one step ahead in the market.

In Conclusion

The points mentioned above show how cloud and artificial intelligence (AI) empowers accounting firms and improves productivity in the process. It helps to do more work in less time and provide best-in-class services to the clients.

Author's Bio

Bhavleen Kaur is a writer at Ace Cloud Hosting- a leading QuickBooks cloud hosting provider. She specializes in writing about accounting, cloud technology, tax software, and likes to know about upcoming technology and trends. You can follow her on Twitter and LinkedIn.