For a long time, when someone thought of accounting, images of bulky paper files, time-consuming manual processes, laborious tasks, and mind-boggling numbers would come to mind. This traditional accounting approach adds billions of dollars to operational costs and slows company growth. However, the influx of AI-powered accounting automation solutions has permanently turned the accounting industry upside down and completely revolutionized the accounting landscape.
In this blog, we delve into the top 5 technology trends redefining multi-entity accounting in the U.S.
1. Reliance on predictive analytics for industry insights
Multi-entity accounting enables businesses to gain valuable industry insights through predictive analytics by integrating Artificial Intelligence (AI) and Machine Learning (ML) in the accounting process. Predictive analytics can forecast upcoming trends, identify patterns, and mitigate financial risks. Furthermore, AI-ML can automate all routine & repetitive manual tasks, allowing accountants to focus on more strategic and revenue-generating initiatives.
Docyt’s Insightflow feature provides users with real-time industry insights to swiftly identify trends, generate instant financial reports, and drill down into details for critical areas like expenses, revenue, invoices, and receipts. InsightFlow empowers clients to excel in industry-specific accounting, generate insightful reports on key business metrics, and track industry-specific Key Performance Indicators (KPIs) for informed decision-making.
2. Rising focus on compliance using AI
2023 witnessed some of the biggest accounting scandals. From Fortune 500 companies to small & medium businesses (SMBs), organizations of all sizes have fallen prey to accounting fraud and have lost millions and billions of dollars. These colossal losses could have been prevented with effective and efficient compliance processes.
Leveraging AI-powered accounting solutions, multi-entity accounting firms can streamline compliance processes and meet dynamic regulatory requirements. Accounting software automates crucial aspects of accounting, like tax reporting and financial audits, to ensure adherence to accounting standards, like USALI, and prevent multi-entity accounting firms from incurring hefty penalties due to non-compliance. Docyt is SOC2 compliant, employs bank/military-grade data encryption, and ensures data security compliance.
3. Securing accounting transactions with blockchain integration
Blockchain has been instrumental in addressing the pressing data security and transparency concerns involved in multi-entity accounting. Blockchain technology’s decentralized and transparent nature makes it a viable option to secure accounting transactions and build tamper-proof financial data protection.
According to a study from the London School of Business & Finance (LSBF), blockchain technology can:
- Reduce data breaches by up to 80%
- Save businesses $365 billion annually by 2030
- Reduce financial services transaction costs by 35%
With this in mind, multi-entity accounting firms are integrating this technology into accounting systems to reduce costs, improve accuracy in asset ownership, and reduce reliance on
4. Empowering mobility with mobile accounting apps
A vast percentage of young accounting professionals prefer to make business payments, view accounts, and access, manage, & monitor multi-entity financial data on their mobile phones. This creates an urge for financial technology (FinTech) or accounting automation firms to develop mobile accounting applications to cater to their requirements effectively.
5. Rise in the adoption of AI-powered accounting automation platforms
There has been an imperative and rising trend of implementing AI-powered accounting automation platforms to increase efficiency, cut costs, and save time. AI-powered accounting automation platforms play a significant role in streamlining multi-location business accounting, leveraging the power of artificial intelligence. AI-powered accounting automation platforms like Docyt enable multi-entity businesses to:
- Automate tasks like expense splits, journal entries, and transfers between businesses.
- Track discrepancies in merchant processor and cash deposits.
- Generate accurate daily revenue reports with continuous ledger updates and access consolidated financial reports for a comprehensive overview of all business entities.
- View aggregate or comparison profit and loss and balance sheets, along with the flexibility to drill down into individual entities for detailed insights.
Why Docyt?
Docyt360 enhances financial processes, optimizes expense management, automates revenue tracking, and facilitates a streamlined month-end closing. The platform runs multi-entity operations from one centralized accounting software platform to provide unmatched insight into the performance of each business entity with on-demand flexible reporting options. It also streamlines payments with its mobile or web app and accelerates payments through AI-driven duplicate detection, access controls, and automatic syncing with accounting software. Docyt also streamlines workflows from invoicing to reconciliation in one integrated platform for multi-entity accounting firms.
Want to learn more about how Docyt can help your multi-entity business? Reach out to us.
