UK: Accounting & Finance Technology

Here in the UK, HMRC is trying to cut costs and increase efficiency by doing more online. Some of these changes will have a big effect on tax software, and on the business model for many accountancy practices. Taxpayers who log on to their digital account will be able to pay the tax at any time in the year. Businesses will still need help and advice from tax specialists, but the nature of that help will inevitably change. Advisers will therefore need to consider what tools they will need in future.

Clients expect their accountants to offer automated services, and accounting professionals of all specialisms are struggling to meet those demands. This expectation isn’t just coming from clientele, either. According to a survey conducted by the Association of Certified Chartered Accountants indicated over 50% of C-level executives in the accounting industry anticipate the development of automated accounting systems. If the accounting software you rely on isn’t current with changing times, you could find yourself and your company behind the curve within a few years. 

Here are a few of the most important accountant technologies we suggest you be familiar with. 

Cloud computing 

Many professionals have undoubtedly heard the buzzword “cloud,” but what exactly is cloud computing? 

Cloud computing is the storage and accessibility of data online rather than on a hard drive. Accessing programs via the cloud gives a free flow of information, no matter where you are or which device you’re using. The cloud also gives clients and colleagues the ability to access certain data, making it easier to collaborate and exchange information. 

Cloud computing is already a big deal in accounting, and you can further establish yourself as a forward thinking leader in the field by brushing up on your knowledge of the popular accounting software options available only in the cloud. These include QuickBooks Online, Xero, and Sage. 

Automated accounting technology 

The business landscape is quickly approaching the “no-code, low-code” era of accounting, which means there will be virtually zero data entry required in the industry. Automated technology has always presented the double-edged sword of convenience against the replacement of humans with technology. 

Those in the accounting field argue that automated technology will make accountants’ lives more efficient, cutting down the time spent on manual entry and reducing human error. This efficiency can provide accountants additional time to optimise their involvement in a company’s economic strategies. This could translate to higher profitability. 

Cloud-based accounting systems such as Xero are considered automated accounting programs, but they represent only the tip of the iceberg. With automated accounting, professionals will be able to utilise the latest technologies that highlight anomalies or patterns without manual data input. 

Today, API’s (Application Programming Interface) allow us to connect software together like “Lego-bricks”, this ensures integrity of our data and reduces manual entry errors. Not to forget, up to date data for better management information and tax submissions. 

Optical character recognition 

In 2016, optical character recognition (OCR) hit the ground running in tax software, making accountants’ lives easier. 

OCR applications scan printed and handwritten documents and convert them into machine-readable text. When they can scan a handwritten note (or photograph of a note) and create an electronic document, professionals can quickly share information with colleagues and clients. 

The integration of OCR with accounting software allows accountants to perform a simple digital search to find the information they need. They can also digitally copy or edit information as required. The best part is that OCR allows accountants to cut hours of work from such tasks as itemising receipts, organising invoices, tracking expenses, recording taxes, and eliminating paper clutter. 

Becoming well-versed in OCR, among other growing trends, can make you a highly valuable employee for even the largest accounting firms.

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