Modern accounting: How accounting technology is changing the industry

Technology touches every aspect of our lives, and accounting is no exception.  

When we think about accounting technology, spreadsheets are often the first thing that comes to mind. But that’s just one piece of the technological landscape.  

The emergence of cloud-based accounting software has revolutionized how businesses collect, analyze, and report on financial data. And adopting modern software can transform the role of accountants.  

Whether you're a business owner, an accounting professional, or a controller, modern accounting technology can free you from tedious tasks and give you more time for data-driven decision making.

Let’s dive into how technology is leading the evolution of the accounting industry.  

The evolution of accounting technology

The practice of accounting has been around for millennia, and the tools of the trade have had quite a journey from clay counters to handwritten ledgers to cloud-based accounting solutions.  

Today, accounting technology encompasses a wide range of solutions and platforms designed to streamline financial processes and enhance accuracy.  

Let’s go over the most important innovations in accounting technology in the past decades and how they have transformed the accountant's role.

Automated accounting systems  

Accounting is one of the professions most impacted by manual, brute-force solutions that lead to long hours and burnout among accountants.  

This is why one of the most groundbreaking advancements in accounting technology has been the development of automation software. These sophisticated solutions perform routine tasks such as fixed asset reporting, tax depreciation, and reconciliation with minimal human oversight.

The automation of these processes not only reduces the risk of errors caused by manual entry, but it also streamlines operations, allowing accountants to use their time more efficiently.  

This shift empowers accountants to grow their roles from number crunchers to strategic advisors, contributing to better resource management and strategic planning within their organizations.

Cloud-based solutions

Cloud computing has transformed the accounting landscape by providing real-time access to financial data, enabling businesses to make informed decisions quickly. Plus, cloud-based solutions remove restrictions like location or time, providing more flexibility for accounting teams.

The most widely used cloud-based solutions in accounting are enterprise resource planning (ERP) software like NetSuite, which facilitate better financial management through:  

• Intuitive user interfaces (UI) that enable collaboration across teams
• Automation that simplifies accounting processes and reduces errors
• Accurate reporting that enables financial analysis  
• Increased customization  

Cloud-based solutions exemplify the shift towards more agile and responsive financial management. However, ERPs weren’t developed for accounting specifically, and their out-of-the-box functionality doesn’t always meet accountants’ needs.  

But because they’re highly customizable, ERPs allow businesses to tailor the software to their operations. This is possible through embedded solutions that enable businesses to streamline processes within their ERP. (We’ll come back to this in a moment.)  

The benefits of adopting accounting technology

Accounting technology not only improves efficiency and accuracy, but it also offers deeper insights into financial performance, enabling better decision-making. Let's take a closer look at the benefits of accounting technology.

1. Automation reduces manual tasks and ensures greater accuracy

Automation streamlines accounting processes and reporting, saving time and reducing errors by eliminating manual entry.  

For example, NetAsset provides an automatically generated asset roll forward report, so neither you nor your auditors need to create this report manually or worry about its accuracy.

The most important benefit of automation is that it frees up valuable time for accounting professionals, allowing them to focus on more strategic activities like financial analysis, which we’ll discuss next.  

2. Enhanced data analysis enables decision making

With advanced accounting technology, businesses can now leverage big data analytics to uncover trends, predict future performance, and make informed decisions.  

This level of analysis was once out of reach for many businesses because they didn’t have the time or resources. But thanks to modern solutions, small accounting teams can quickly generate reports, analyze the data, and come to informed decisions that move the business forward.  

3. Improved compliance and security protect financial data  

Technology has played a key role in enhancing the security of financial data. ERPs like NetSuite provide robust encryption and secure data storage, meaning businesses can protect sensitive information while conveniently accessing their data.  

Additionally, software solutions like NetLease help ensure compliance with ever-changing financial regulations by staying up to date on new standards and incorporating them into the accounting process.  

Check out how PCF Insurance moved away from manual spreadsheets and ensured all their leases comply with current lease standards by adopting NetLease.  

4. Collaboration is streamlined

Accounting software facilitates better collaboration among team members, stakeholders, and clients. That’s because cloud-based systems enable multiple users to access, edit, and share financial documents simultaneously, regardless of their location.  

This real-time collaboration ensures that all parties are up to date with the business’ financial status, leading to more cohesive decision-making.  

Cloud-based systems eliminate the delays and confusion that can come from managing disparate systems or sending spreadsheets back and forth and losing track of the most recent information.  

5. Cost reduction

Adopting modern accounting technologies can significantly reduce operational costs. By automating routine tasks, businesses can minimize the need for manual entries and reduce the risk of costly errors.  

Plus, embedded solutions can help businesses eliminate the need for costly third-party tools or software by keeping everything within their ERP.  

Lastly, the increased efficiency and accuracy these technologies provide can lead to better financial management, ultimately saving businesses money by avoiding financial pitfalls and enabling more strategic planning.

Considerations for adopting accounting technology

Now that you know the benefits of accounting technology, you may be ready for the next step—deciding whether to adopt new solutions, such as lease accounting software or close management software.  

As you evaluate your current solutions and research new ones, keep the following considerations in mind:  

• Native solutions vs integrations: Consider whether you can consolidate your tech stack by adopting solutions that are embedded directly in your ERP (also known as native solutions) or if your operations require that you integrate third-party software. Some businesses require a combination of both.  
• User-friendly UI: As you compare solutions, consider whether they offer intuitive UIs that everyone on your team can quickly learn to use.  ‍
• Customer support: Look for solutions that will set you up for success with quality customer service and onboarding to ensure smooth implementation and ongoing support.  

Discover how Netgain’s accounting technology can empower your team

From automating routine tasks to providing advanced analytical tools, technology has transformed how businesses manage financial information. And new solutions bring new opportunities for businesses to thrive and grow.  

That’s exactly why we create innovative accounting solutions here at Netgain—to empower accountants to take back their valuable time and amplify their impact.  

Netgain’s solutions are revolutionizing accounting processes by automating manual tasks and giving accountants more time for strategic thinking, all without leaving NetSuite. Our embedded software empowers accountants to achieve more within your ERP, reducing context switching so you can stay in your flow state when you’re getting things done.  

Plus, Netgain’s solutions enable you to customize the software to your operations, maximizing your NetSuite return on investment (ROI).

Not sure if you’re getting the highest ROI from your accounting software? Use our accounting software evaluation checklist to find out, then check out a demo to discover how Netgain can help boost your NetSuite instance.