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From the transformation of modern accounting systems and processes to the transformation of manual tasks into automated functions, the term technology itself is consistent with the development of today’s business landscape. It has made it possible for businesses to operate more efficiently and effectively.
In the last few years, new technologies and tools have surfaced and changed almost every aspect of the industry, which include a promotion, management, IT, and finance. It is common to feel that bookkeeping and accounting have been neglected. Till recent times, this industry had been stuck in the dark ages. In addition to on-site solutions, developments such as SaaS have seen the industry add cloud-based memberships, but that does not stop there. However, with the surge of powerful emerging technology innovations over the years, it is beginning to look that this industry is ready for an interruption.
The collective drivers behind the general disruption of the finance or accounting industry in Dubai are as follows: –
- Requirement of better connectivity by the clients
When we look at any service-based businesses in today’s time, we can identify in several ways in which the developments have started or have already become more customer-centric. Now, with Internet facilities, cloud advancements, and remote tools, accountants do have the capacity to link with customers in a substantial manner. In addition, it would seem that they could finally take advantage of these abilities.
- Data entry automation
Automation is the key driver for the interruption of bookkeeping and accounting in Dubai. Regarding things like automatic import, e-documents, and robust software, some companies are even able to fully exclude data entry. This gives rise to more expertise and enables organisations to make better use of human capital rather than using manpower for the task of data entries.
- Great insights from machine learning
Accountants are generally able to classify through data and allocate analytical insights based on past information. That being said, as technology advances, things like machine learning and AI (artificial intelligence) make it possible for accountants to obtain real-time insights that can be used to enhance the value of organisations and customers at the moment.
- A demand for specialisation
All Businesses now have a taste of specialisation, and they have already got to expect it in every product or service they use. The specialisation is one of the driving characteristics of disruption in every industry. As far as the accounting industry is concerned, this trickles over and creates demand for specialisation over bundled packages. Businesses only want to pay for the services they need. This is eventually adding pressure on the marketplace too.
- Accounting software
It has only recently become intense, and competition will grow even fiercely in the years to come. User-friendly operations and more functionalities will be vital, but developing efficient solutions will be the primary concern for all accounting software companies. At the very same time, it cannot be overlooked that the main purpose of the software is to increase production efficiency and minimise manual tasks. The market will certainly experience a higher level of growth. Also, Fortune Business’s insights suggest that, between 2019 and 2024, the market will experience a growth at a CAGR of 8.5 per cent. The adoption of modern technologies in Asia-Pacific would also fuel the growth of accounting software companies.
Some popular accounting software in Dubai are: –
- Sage Intacct: Provides Useful accounting solutions for cash management, accounts payable and receivable functions and expenditure management
- Xero: It facilitates tracking and editing transactions, monitors invoicing and billing, and perhaps even processes payrolls.
- FreeAgent: It allows you to send and track invoices and prepare budgets and manage expenses. Its built-in stopwatch also helps keep time records.
- Gusto: It comes with automated payroll management capabilities to ensure the reduction of human error.
- Sage: It facilitates accounting for Business Cloud. This model integrates accounting, cost management, and compliance management under one platform.
- Outsourcing of accounting functions
Outsourcing accounting functions has become a useful approach for many companies. It is among the fastest-growing areas in the accounting industry because it is widely seen as a feasible way of increasing profitability by saving employment costs such as payroll, taxation, salaries, benefits, and training costs. And that is the primary reason why there seems to be a huge increase in the outsourcing of accounting services by the companies.
- Data analytics and Accounting
The accounting industry in Dubai is already shifting its focus to data analytics because it helps reduce a set of specific accounting tasks. Because accountants are seeking and taking on new roles as advisors, analyzing numbers enables them to develop unique skill sets to acquire important insights and recognise improvement opportunities. It also helps to increase efficiency and effectively manage risks. Larger accounting firms utilise the tools of data analytics in tax, consulting, risk management, and auditing, and many other vital processes.
- Social media leverage
The use of social media for accountants in Dubai has quickly become an effective branding and sales channel that enhances their exposure. Approximately 77% of accountants utilise social media as part of their marketing and advertising strategies. It also is highly recommended that their skills or expertise in social media be boosted, which, in turn, provides numerous opportunities to learn much more about the business sector.
- Remote work and offshore staffing
Accounting leaders in Dubai are increasingly adapting to the trend of enabling employees to engage in remote work. This would not have been possible in the past years. So, with technological developments and the emergence of computerised accounting information systems, accountants have started working from home and are able to produce excellent results.
- Advisory services
The introduction of new remedies for analytics will combine accounting technology and insight from financial advisors in the near future. Experts are also predicting this. Accountants in Dubai will be able to concentrate more on decoding data for deeper insight. Increasingly, the launch of more advanced technologies in the accounting sector enables accounting firms to focus on the quality of their advisory services.
With these significant trends being experienced in the accounting industry in Dubai, it would not be an exaggeration to say that the entire industry is set for a tectonic shift in the years to come.