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What You Need to Know About Automation in Accounting

In Pittsburg State University’s Master of Business Administration in Accounting online program, students will become well-versed in many principles and practices of accounting and business, including issues such as the integration of technologies like automation — which is affecting most every industry and profession, directly or indirectly.

There is potential for automation software to efficiently accomplish many of the job duties currently carried out by highly skilled Certified Public Accountants (CPAs). Yet automation in accounting can provide CPAs with the information, advanced analysis and free time necessary to improve their impact and contribution to an organization.

Automation technology integration is an increasing necessity for businesses to succeed, so CPAs will need to understand and effectively utilize automation software for accounting processes. Thus, the forward-thinking CPA can benefit greatly from the study of automation and how it will affect the accounting profession in new yet advantageous ways.

What Are the Benefits of Automation in Accounting for Businesses?

Using software for the automation of routine accounting operations like the updating of records and data entry for payables and receivables can drastically reduce human error and increase the efficiency and the usability of analytics.

Automation in accounting can help businesses do more than just keep up with the competition in today’s chaotic business environment. Organizations must stay ahead of the technology integration curve in order to secure an advantage, and accounting automation software can be essential to this.

Accounting automation can offer businesses exact, real-time feedback on cost versus benefit analysis, helping to highlight where resource management is working or needs improvement. Automation software can also compare available data to that of competitors and market conditions, allowing businesses to pinpoint areas to focus on.

In addition, the integration of AI processes involved with automation in accounting can help provide accurate forecasts of growth and a business’s financial scalability. All of this can serve to improve cost effectiveness and resource management, with the end goal of increasing profit margins and business potential.

What Does Automation Mean for Accountants?

All of this may sound good for businesses but troubling for the future of the accounting profession. Will automated accounting software render the human CPA a profession of the past? The reality is quite the opposite: Automation in accounting has the potential to carry out the brunt of mundane, routine data entry and analysis tasks that accountants traditionally handle. Thus, automation can free up substantial amounts of valuable time so accountants can accomplish what they do best: turn facts, figures and data into actual strategy and policy, constantly refining and improving a business’s resource management.

Accountants work across departments with management, leadership and project teams to help integrate resource management strategy into everything from supply chain and logistics to marketing and human resources. Communication between an organization’s departments is key to an business’s resource management. Accountants also serve as catalysts for intervention in other departmental resource and financial strategy where necessary.  

Essentially, automation augments the capacity of accountants, expediting data collection, fine tuning analysis and allowing accountants to focus their time on the human component of resource management strategy.

All told, the human element of accountancy is still indispensable to every organization looking to secure and advance its market niche. But, as the integration of technology in all business operations will only continue to increase, the advanced study of automation software is necessary for accountants who wish to remain relevant and advance in their careers.

Learn more about Pittsburg State University’s MBA in Accounting online program.


Sources:

AccountingToday: No, Automation Won’t Kill the CPA

AccountingToday: Why Automation Is a Positive Turning Point for Accountants

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