If you attended Xerocon last week, you know the future of accounting is extremely exciting. Technology is completely reshaping the way accounting works, as cloud software platforms offer real-time data tracking and scalability. Here are some of our key takeaways from the conference:
Technology is making compliance more challenging for SMBs
Keri Gohman, President of Xero Americas, focused on the impact technology has had on accounting over the past two decades. The cloud has changed everything in terms of creating efficiencies and freeing up tons of time formerly spent on tedious manual processes.
But as technology streamlines certain business functions, it also complicates others. Compliance is one of those issues. State and local governments are using the same technology that helps businesses increase efficiency and grow to crack down on compliance all over the United State. This creates new challenges for companies in every industry.
To keep up with constantly changing regulations like newly imposed reporting requirements by individual states, businesses are turning to software solutions that make their lives easier. But not everyone has caught up yet, especially in the small business sector.
“This leaves [small business owners] with huge knowledge gaps as technology keeps accelerating,” Gohman warned.
She noted that only 32 percent of the SMBs in the United States hire accountants, and less than half even consult with an advisor in any capacity. This small number is puzzling in spite of business owners naming compliance issues their number-two concern this year.
The future of accounting is geared toward AI
Gohman and several of her fellow panelists — namely Xero CEO Rod Drury and technology author Tim Leberecht — spoke of a future in the accounting field dominated by AI technology. Cloud software gives businesses the ability to streamline and automate processes, but AI complements this with instant insights and advice.
“This is the golden age of accounting and advice, but what’s next?” Gohman asked. “Next generational technologies will fully unleash the proficiency from efficiency to advice and integration power.
Drury spoke of AI as the logical next step in the ongoing technological revolution, with broad implications for accounting. He said the field will probably see more innovation in the next two or three years than it has seen in the past decade.
No matter how the landscape continues to evolve, Taxify by Sovos’ adaptable, scalable platform will continue to help businesses automate their reporting and filings processes and save businesses from tackling complex and time consuming manual tasks.
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