AcctTwo Blog

The concept of "Digital Transformation" using technologies like Artificial Intelligence (AI), Robotic Process Automation (RPA), and Blockchain can be overwhelming for any organization to sort through, much less implement an adoption strategy for.

As an example of the difficulties organizations have had with digital transformation, a recent Gartner survey shows that even though companies have made data and analytics a priority in recent years, 91% of companies don't feel that they've reached a "transformational" level of maturity in that area. Companies are eager to embrace the potential of integrated technologies and analytics, and they recognize that in many industries digital transformation is essential for remaining competitive. The problem is that wanting to change and actually transforming can be miles apart.

The reason we conduct auditing on a cycle is because there has never been another way. It takes significant time and labor to compile the necessary accounting data and ample resources to ensure the audit is complete and correct. The overall amount of input necessary means that auditing always has to stop after starting.

Artificial intelligence (AI) is rightly being called one of the most transformative technologies in human history. Systems that are intelligent and adaptable will make it possible to accomplish and understand more than has ever been possible before. The repercussions for business are huge, but the impact is likely to reach every corner of humanity.

It's appropriate to talk about AI excitedly, but it's also a little misleading. The promise and potential of AI is huge, but it's not going to change the world overnight. It's also not going to solve every hassle or headache that companies deal with. AI is a powerful tool, but it's not a panacea.

Nonprofits don't get enough credit for their savvy strategic thinking. They have to sustain themselves and secure growth just like any private enterprise. But they must do it with tighter budgets, tougher restrictions, and higher standards for transparency and accountability.

It's an impressive achievement that nonprofits are able to balance boldness with prudence so successfully. But it's also a challenge. When every dollar of every donation or grant matters, nonprofits can't afford to make bad bets or hasty decisions. Otherwise, they could put their mission, reputation, or future in jeopardy.

We've read and written quite a bit about how quickly accounting regulations, processes, and technology are changing in the private sector, but many of those trends also apply to nonprofits and government entities whose accounting revolves around funds. Fund accounting is different from for-profit or commercial accounting. It encompasses most aspects of commercial accounting but goes beyond those requirements in both form and function. Learn about five important trends we see in the world of fund accounting:

Automation has been used in accounting since at least the first adding machine. But now that automation is driven by advanced algorithms and intelligent machine learning, it's impacting accounting more than ever before.

Most offices rely on some form of automation to expedite accounting and ensure accuracy. However, the recent trends in finance and accounting automation suggest it's evolving beyond a tool and into a mission-critical asset. The capabilities currently coming online promise to have a positive impact on accounting for a long time to come:

When the tech-giant Sage announced plans to acquire Intacct we were excited for several reasons. Obviously, the resources of Sage Intacct would grow, which would allow us to offer more to clients, but we also knew that Sage shared our deep commitment to giving.

If you were operating a business in the '90s this scenario is probably familiar: You purchase a desktop accounting software with some basic transactional tools. Then you pour dozens of hours into issuing checks, recording invoices and other basic obligations. Everything else, especially financial and compliance accounting, is sent off to professional accountants.

This was the dominant mode of accounting pre-internet, and it didn't meet anyone's needs especially well. Business owners poured tons of time into accounting, but due to their lack of professional expertise the books were often incorrect and disorganized.

Effective financial reporting empowers companies to operate flexibly, strategically, and confidently. More commonly, however, reporting is a cumbersome process with minimal benefits. Despite spending ample time and resources pouring through data, companies learn little to propel themselves forward.

The specific pain points that limit the potential of financial reporting are unique to every organization, but they can all be traced to common problems. By focusing on those, it's possible for any company to transform reporting into a true asset. Follow these four strategies to learn more in less time:

Today's CFOs have a mandate to implement new technology across their organizations. A recent survey by Grant Thornton and CFO Research revealed that 69% of the senior finance executives who responded planned to invest more in technologies, with almost 40% increasing budgets by 10% or more. These efforts are intended to not only catch up with the competition, but also to surpass them with new offerings and a better customer experience. 

Unfortunately, the urgency of adopting new technology is matched by its complexity and difficulty.