Why technology is important in the financial state

Financial technologies are never new, they keep on evolving. The people of Mesopotamia ranged from recording transactions on clay tablets to an accounting of state finances to the Roman emperors, from Chanakya writing the first financial management book for a sovereign to the Italians to the double-entry book-keeping system started of. 

The latter became the foundation upon which Scottish entrepreneurs invented modern accounting and finance between the first two industrial revolutions. At the height of the Second Industrial Revolution (1870–1910), the Institute of Chartered Accountants was established in England and Wales, which transformed accountancy into an organized profession. However, the 20th century is actually when accounting and finance entered the field of business practice and economics in academia.

As businesses evolve, so do commercial transactions that inspire new accounting, financial, business and legal practices. It is no exaggeration that accounting and finance will be significantly disrupted by technology during the next decade. 

The industry is already witnessing disruption due to cloud computing, blockchain, artificial intelligence, digital payments, cryptocurrencies and robotics. Further disruption is inevitable. But so far, financial institutions have harnessed technology-induced business disruptions and enabled entrepreneurial ideas to flourish.

Although fundamentally, the current financial system is unsuitable for technological advancements in business and finance services, at a time when new technologies have become important for startups and new ventures. 

For example, digital money is already ubiquitous and includes less than a central bank digital currency, private cryptocurrency, B-money issued by banks, electronic money provided by private business entities, and i-money issued by private investment funds. has taken at least five forms. 

They pose a regulatory challenge to central banks (such as the RBI in India) and a threat to the existence of traditional financial institutions.

Against this background, there is an urgent need for the finance and accounting profession to reinvent itself as it used to be centuries ago. However, reinvestment is likely to prove more difficult than before. 

For example, the term ‘financial reporting’ triggers images of spreadsheets, charts, long tables and footnotes generated by armies of accountants and analysts who prepare financial statements for corporate leaders, promoters and investors to facilitate business decisions. Huh.

From Wall Street to small towns and everywhere in between, financial teams work hard month after month to complete the financial reporting process. Their goal: to deliver data executives use to make business-critical decisions on everything from budgeting to business process management. To deliver the maximum possible value, financial reports need to be timely, accurate and complete – especially in today’s fast-paced global economy. But this is one thing that can be said more easily than done. Troubled by outdated workflows and a lack of proper tools, financial professionals, both large and small, struggle to timely complete the financial reporting process to provide actionable insights that provide value.

Happily, today’s advanced digital technologies can take the pain out of reporting. Understanding how the use of technology can improve financial reporting begins with understanding the capabilities of today’s advanced digital tools, and how they allow you to collect, manage and collect financial data with greater speed, accuracy and utility than ever before. How we can help to do, analyze and deliver.

Modern financial reporting requires speed, accuracy and clarity

The modern market is moving at an unprecedented pace. More and more, companies eager to gain and maintain a competitive advantage seek digital solutions that will help them achieve greater efficiency, speed, accuracy and transparency. As a result, the traditional approach to financial reporting—a long, arduous process that requires substantial labor from large employees—no longer cuts the proverbial mustard in the world of Big Data.

The primary challenge in dealing with all this big data can be best expressed in “three versus”: diversity (different data sources), velocity (the rate at which data is being generated), and quantity (of the data generated). Quantity). In financial business reporting, as in other fields, taking on the massive influx of information that comes with doing business with manual workflows and printouts isn’t just leaning on windmills; It’s leaning on Godzilla with a butter knife.

With data in abundant (and potentially overwhelming) supply, it’s vital that businesses have strategies, and tools at hand, to organize it if they hope to harvest for insight rather than crush it down. and to analyse. Pet care adda 

Chief financial officers (CFOs) and other stakeholders expect the finance function to optimize its reporting processes (eg, accounts payable (AP) reporting) to deliver results as quickly as possible – and, in many cases, in real time. They need financial data for actionable business insights, and hopefully they can use to make better decisions.

They often struggle to get over it: In Deloitte’s 2016 survey of more than 600 CFOs and other senior financial professionals, 53% of respondents reported data quality as a problem within their organization. For those businesses without executive sponsorship for the digital transformation to enhance financial reporting, this value increased to 80% by the help of credit card processing 

And while Deloitte’s research found that while taking advantage of new technologies and their associated skills—as well as standardization—finance work allows team members to interact directly with the business rather than devoting their time and energy to reporting. For example, only 35% of those surveyed felt their current level of technology supports effective financial reporting and analysis. In fact, survey respondents indicated that their financial operations spent nearly half (48%) of their time preparing and updating financial reports and less than a fifth (18%) communicating those results to stakeholders.

In addition to ensuring financial and legal compliance with accounting standards, one of the most important roles of finance in any organization is to provide business insight. It has become increasingly clear that, without the support and investment of new technologies, companies will struggle to find and leverage those insights when they are fresh and actionable.

By adopting powerful and innovative digital transformation technologies such as artificial intelligence (particularly machine learning), robotic process automation and advanced data analytics, finance leaders are redefining the financial reporting process to prioritize speed, accuracy, transparency and usability. Huh.

By Anurag Rathod

Anurag Rathod is an Editor of Appclonescript.com, who is passionate for app-based startup solutions and on-demand business ideas. He believes in spreading tech trends. He is an avid reader and loves thinking out of the box to promote new technologies.