This paper examines how emerging technologies are reshaping the accounting profession, with a focus on cloud computing and Software-as-a-Service (SaaS) platforms, big data analytics, XBRL reporting standards, and mobile computing. The analysis describes each technology's effect on accounting processes and financial reporting, noting how cloud-based and SaaS solutions are shifting software procurement from capital to operating expenses. The paper also illustrates these trends through the real-world example of Cincom Systems, an enterprise software provider that has modernized its legacy accounting infrastructure using cloud-based integration and financial reporting analytics.
Accounting and finance continue to see rapid improvements in the accuracy, efficiency, and performance of systems as advances are made in the fields of analytics, big data, system integration and reporting, mobility, and cloud-based platforms including Software-as-a-Service (SaaS). Taken together, these technologies are accelerating the pace of change in accounting today. The intent of this analysis is to describe these technologies and explain their effects on accounting processes. They are also discussed in terms of how they are changing accounting practices at Cincom Systems, a provider of enterprise software.
The most significant advances in technology impacting the accounting profession are occurring in the area of cloud computing and SaaS, as cloud architectures are fundamentally changing the economics of how software is purchased and used (Arnesen, 2013). The growing interest in SaaS-based accounting, finance, and Enterprise Resource Planning (ERP) systems is also drastically reordering the landscape of accounting and finance systems and how they are used throughout organizations today (Arnesen, 2013).
Cloud-based accounting, finance, and ERP systems all have the ability to share information in real-time across all users simultaneously, and are increasingly being integrated into legacy systems that companies have had in place for decades (Ionescu, Ionescu, Mihai, & Cojocaru, 2009). What is most unique and disruptive about cloud-based and SaaS accounting, finance, and ERP systems, however, is how they are purchased. Typically, an accounting department can pay only for the portion of the system it uses, often drawing on operating expense (OPEX) budgets rather than capital expense (CAPEX) accounts, which have traditionally funded accounting and finance systems (Arnesen, 2013). As software companies continue to pursue cloud and SaaS-based strategies, more businesses are adopting their solutions and replacing on-premise accounting and finance systems as a result.
A second significant area where technology is affecting accounting and finance today involves big data and reporting using advanced protocols, including XBRL (Brands, 2013). Big data is opening up opportunities for many accounting and finance departments to mine decades of previous transactions, looking for insights into how to better serve customers and control costs. Closely related to this trend is the widespread adoption of financial analytics and advanced reporting functionality (Christensen & Skaerbaek, 2010). These applications are also fueling greater use of predictive analytics and an increased reliance on advanced business intelligence (BI) as part of the broader suite of accounting and finance tools companies use (Collins, 2013).
All of these advances are particularly relevant for publicly held companies that trade on U.S. stock exchanges, as such companies must file their financial statements with the U.S. Securities and Exchange Commission (SEC). The SEC has been testing and continually validating the XBRL standard for several years, and every publicly traded company is now required to file reports using this standard (Brands, 2013). While the XBRL standard applies only to publicly held companies, all accounting and finance departments benefit from gaining greater insights from their legacy systems through the use of systems and process integration (Ionescu, Ionescu, Mihai, & Cojocaru, 2009). This area continues to flourish, with cloud-based integration architectures (Arnesen, 2013) and advanced connectivity applications becoming more commonplace than ever.
"Smartphones enable real-time executive access to metrics"
"Cincom modernizes legacy systems with cloud integration"
Advances in cloud computing, big data, XBRL reporting, and mobile platforms are collectively accelerating transformation across the accounting profession. Organizations such as Cincom Systems demonstrate that integrating these technologies yields measurable gains in visibility, accuracy, and decision-making. As these trends continue to evolve, accounting professionals will need to remain current with technological developments to remain effective and competitive.
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