The current technological landscape is shaping the accounting industry in its best form which the world has never seen before. With the blessing of the technological advancements like cloud computing, artificial intelligence and machine learning, the accounting industry has witnessed drastic changes in its operations and all this modification has happened for good.
Out of all these technological advancements, the Internet of Things has also played a significant role in revamping the accounting industry and it will continue to do so in the near future. But before moving into the conversation of how Internet of Things has changed or will change the accounting practices and operation, we need to first understand what Internet of Things really is.
What is Internet of things?
Talking in simple language, IoT is simply a system of interconnected machines, devices, etc., which are able to exchange data with each other even communicate without the need of any human interference. In other words, IoT is an extended application of the internet, where devices and application can share data with each other over the internet.
This technological solution opens a new opportunity in the field of interconnectivity while modernizing and morphing various industries including the accounting.
How IoT will impact accounting?
Looking at the current growth of the IoT, we can soon witness many changes in the accounting industry, especially in the auditing field. The IoT solution will surely change the flow as well as the source of the data while impacting normal accounting operations like billing and resource planning. For example, with IoT in the accounting system, CPAs will no longer need to go to a bookkeeper for collecting the client’s data as they will receive it automatically through a digital system.
With the help of IoT, CPAs will be able to get their hands on real-time transactional data, along with enhanced control and power on the existing operations.
What are the challenges that will come along with IoT?
Being up to date
With the introduction of the IoT, the accountants will have to move out of their comfort zone of numbers and become more tech-savvy. As the modernized solution of IoT will come closer to the doors of accounting, professionals from both the industries will have to work together in order to get the required results. With their collaborative efforts, they will be able to serve their clients in a better way and build an IoT based business structure.
Intricate data governance
Another hurdle which will come along with the introduction of the IoT is not being able to get authentic and accurate data from the sources. Currently, the data is handled by the ERP system and with proper control, it is made sure that the data is not fake or a spam. So you will be able to trust the ERP system better than the IoT system in terms of authenticity of the data.
Security of data
In a situation where all your devices and appliances like the car, watch, sunglasses, washing machine, laptop, and phone are connected internally, the chances of getting your activity and data getting tracked increases. In such a situation, we need to articulate plans which will ensure complete security in such vulnerable interconnection.