11/30/2022 - Technology and Innovation

Accounting: A profession capable of being automated?

By Francisco Gaetano

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Imagen de portada

Today we come with the idea of writing and relating themes corresponding to two recurring areas in this medium, on the one hand Accounting (Economy and Finance) and Process Automation (Technology and Innovation).

How is the accounting of the future?

Before answering the question, I consider it necessary to briefly analyze and reflect the evolution of accounting as an activity in recent years. Without going into detail, it is evident that there was a reduction of face-to-face procedures, the home office mode was implemented, a change in the way of empowering itself and so many changes that had great incentive thanks to pandemic during the years 2020 and 2021. This has shown all colleagues that the implementation of technology provides a multitude of facilities.

Many of the concepts and examples to be developed already exist so it would not only be to speak of future, but also of the present.

Although it is not possible to make clear statements about what will happen in the future, if a reasoned analysis can be made to predict the potential course of accounting. It should be noted that the activity in question has multiple areas of implementation, among the best known we have Audit and Taxes. Since each accountancy domain has its characteristics and way of proceeding, some sections will change more than others, but with the common aim of making it easier for the professional to reduce the level of intervention with regard to operational tasks, such as data load or the liquidation of certain taxes.

What is the degree of advancement in accounting technology?

It is necessary to take into account that by technology we allude to the Software and not Hardware part, thus understanding that the concept to relate is the System.

In order for a process to be automated, you must comply with a certain standardization level, i.e. all movements follow a pattern and one or a set of possible results. That is why the implementation feasibility will depend on that so submitted will be a certain area at the discretion of the counter as a professional.

On the one hand, we may find situations where the criterion is zero, such as the charge of invoices in an accounting system, where we have a sequence of user clicks and the revenue of a given goal as the amount of a competitor. On the other hand, there are situations where professional intervention has less flexibility, for example the liquidation of high complexity taxes, such as the tax on Ganas and Personal Goods.

It should be noted that, although the implementation degrees are variable depending on the different areas, the technology must be tailored to the needs it requires each of them.

Entrance barriers

Many believe that this point of the note will allude to the economic factor of an implementation, which is not entirely certain.

On the one hand, we have the macro side, which consists in the context where a company is located (in this case an accounting study). To implement these features, it is necessary to take into account that the simpler and didactic the web pages where users have to develop will be much better for the implementation and performance of it.

On the other hand, it is the micro that consists basically in the mere criterion of the professional and also of its familiarization with the technology. It is much more feasible than a study composed of young professionals with the desire to innovate in the processes implements an automation that makes it a study of many years of trajectory that already develops manually and considers this the best way to make the requirements of their customers.

Although the economic side is usually a considerable investment, since the costs of consulting and development should be covered, it can often be implemented simple that would save a lot of work time. The best example is the Excel macros where we can tell the system the sequence of clicks that we need the software to do, or that it saves us certain clipping in PDF form, among other so many things. Obviously it will not be at the level of an implementation carried out by a consultant, but if you can save time and money.

Finally, but not least, when making a large-scale implementation and looking for the way to optimize all processes, the investment values and their return on real incomes should be considered, which requires an appropriate financial engineering that evaluates possible scenarios. It is not a question of implementing technology by the fact that it is fashionable or by the simple need to reduce working hours.

Conclusion

To close with the note a small reflection on the topics mentioned; technology surrounds us to facilitate and add dynamism with the central goal of optimizing the most valuable resource that humans have, time. I consider that with their different methods little by little one will achieve the balance that will allow to increase the quality of life. There are many cases where a robot cannot replace a human, but they can do jobs that are tedious and take us time to do other things. With well-performed implementations we can reduce the margin of error and work at non-usual times or times.

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francisco gaetano

Francisco Gaetano

Hi, I'm Francisco Gaetano. I'm 23 years old and I'm an accountant about a year ago, I'm currently working in a multinational consultant in the process consulting area. I also worked in accounting and other private and public entities.

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