For a long time, the Internet of Things (IoT) seemed like something that only science fiction movies could imagine. Still, it has become a reality for companies in a wide range of market segments, including the accounting sector. We are talking about how IOT Services impact in accounting.
It is no surprise that the role of the accountant is changing as society and technology evolve. This professional, who previously provided only manual services and compiled information without any analysis of the deliverables, is now going much further. Today, he also provides specialized consulting services on various issues such as tax management and financial planning, for example.
That said, IoT in accounting is a realistic trend that will have a significant impact on the sector in the coming years. To see how this technological innovation will change everything we know, keep reading this blog!
What is the Internet of Things in Practice?
The Internet of Things (IoT) is a concept that describes how physical objects can be connected to the Internet to exchange data with other devices. More precisely, the Internet of Things is the concept of integrating different electronic devices into a single system, through data transfer over a network.
IoT allows a new dimension of practicality, automation, and interconnectivity to be provided to people’s real and professional lives. As a result, you can see the revolutionizing effect of accounting Through IoT Services which will be a more agile dynamic that provides companies with a series of benefits in relation to data security, employee productivity, information storage and sharing, speed of deliveries, among other factors that will support managers’ decision-making.
What Are the Impacts of IoT on Accounting?
According to a report by Gartner, one of the largest consulting firms in the world, it is predicted that more than 26 billion devices will be connected by the end of 2020, including approximately 7.3 billion computers, tablets, and smartphones- one for every inhabitant of the planet. Therefore, IoT will generate significant impacts on accounting, as this technology has the potential to leverage the sector, especially because of automation and mobility.
Increased Data Security
Privacy and information security are issues taken very seriously in the accounting industry. After all, we are talking about confidential client data that, if it falls into the wrong hands, can dismantle a company overnight.
Therefore, the Role of IoT Services in Transforming Accounting is precisely the increase in this security. This technology is also linked to strong encryption systems developed to ensure that banking data, personal documents, and files that must be kept confidential are only accessed through authorized devices.
Cost and Time Optimization
We live in an era where, more than ever, time is money. As a result of all the digitalized information and changes in consumer behavior, the pace at which people buy and consume services has accelerated. Therefore, a very positive reflection of the automation and integration provided by the interconnectivity of the Internet of Things is that processes are carried out much more quickly and at lower costs.
In other words, the same work that previously required hours of work and a series of resources to be completed can now be done automatically and quickly through a few taps on the screen of a smartphone integrated with accounting management software, for example. This is how IoT Services are shaping the Future of Accounting.
Better Information and Data Management
All data sources related to companies’ financial, tax, and management transactions are benefiting from IoT, thanks to accounting management systems that allow the integration of multiple devices and remote access to information stored on a virtual server.
In other words, the office can access any file, document, or information it needs in real-time on an interactive dashboard. This opens up the possibility for more automation tools to assist in data processing and analysis.
Optimization of Consulting Services
As mentioned above, the role of the accountant has changed significantly over the last few years. From being a professional who only dealt with budgetary issues, he is now a provider of specialized consulting services, covering a wide range of company matters, such as:
⦁ tax management
⦁ accounts payable and receivable
⦁ contract management
⦁ HR related functions
⦁ financial planning
⦁ data analysis
Among other crucial aspects, thanks to IoT in accounting, you can put yourself in a much stronger position to help your clients make increasingly intelligent financial decisions that generate visible results.
Increased Employee Performance
Last but not least, it is worth mentioning the productivity gains that the team will benefit from being able to rely on interconnected devices. We are talking about the possibility of obtaining accurate data on the working hours and performance of each employee.
Think about how much automating manual, bureaucratic, and repetitive activities, so common in the accounting sector, can make your team’s life easier. The time spent manually analyzing a huge volume of data can be dedicated to more important issues, such as customer service, which needs to remain humanized in order to maintain a strong business relationship.
We can cite some simple examples of IoT in accounting, but which are already parts of the routine of an office, such as the fact that an employee in the sales department can send a document about the results to the finance department, through a portable device, at any time and from any place he is. The benefits that the amount of energy, time, and resources saved in this simple process generated are invaluable.
Conclusion
As you can see that the growing impact of IoT Services in the Accounting Industry will significantly transform the segment over the years. To prevent your company from becoming obsolete and being overtaken by competitors, you should contact NexIT. Through the provision of transformative IT solutions, we will help businesses unlock their full potential. This will keep your company updated with digital transformations and technological trends.
