Cloud-based accounting software is increasingly being preferred by accounting firms to enhance the ability to access and edit financial data through the internet, enhance security associated with financial transactions, and to reduce costs. Cloud based accounting software is an accounting software, similar to software as a service (SaaS) model, hosted on remote servers to allow users to perform functions off-site. The accounting data is sent to the cloud, processed, and then returned to the users. This process saves time with automation, creates secure collaboration of financial reports, and provides real-time data and access to financial data from any location. This tool allows the users to access accounts from any devices (smartphone, laptop and others) through the internet, secure the data from online and offline threats, and provides better alternative solutions at lower costs than conventional tools.
In 2018, according to the “Accounting Today” survey conducted by Sage, a software company, 45% of small companies, 57% of midsize companies, and 58% of large companies preferred cloud accounting over desktop alternatives. Additionally, 67% of accountants prefer cloud accounting tools and 53% of them have already adopted cloud-based practice management solutions for project management and communication with clients. QuickBooks, a cloud-based accounting software, has 2.55 million subscribers online at a global level.
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Artificial Intelligence In Accounting Services
The global accounting services market is expected to grow from $574.4 billion in 2019 to $734.7 billion in 2023 at a compound annual growth rate (CAGR) of 6.3%. The use of advanced technologies such as artificial intelligence to analyze and quickly identify irregularities in the data is expected to drive the growth of the accounting services market in the forecast period. Auditors use artificial intelligence to spot suspicious activities or inaccuracies in accounting entries and transactions. Artificial intelligence uses rules created by humans to reason through issues and reach conclusions by identifying patterns from the huge data sets available. Artificial intelligence tools can be adjusted to figure out how accounting entries are being used to cover up irregularities like incorrect revenue recognition or deferring liabilities by businesses. For example, GL.ai is a tool developed by PricewaterhouseCoopers which helps the company to identify anomalies in a business’s general ledger.
