How Automation is Changing the Future of Accounting

Team Nomi

Jan 17, 2025
7 minutes read

Automation is reshaping accountants’ roles by taking over repetitive tasks and allowing them to focus on higher-level responsibilities. In the past, accountants primarily handled manual processes such as data entry, invoicing, and financial reporting. Today, technologies like automation and cloud-based software can automate these functions, reducing the time spent on routine work.

Therefore, the role of accountants is shifting from traditional tasks, such as bookkeeping and tax preparation, to that of strategic advisors, leveraging financial data to provide actionable insights that drive business growth. This shift increases efficiency and enables accountants to engage more deeply with clients, offering valuable advice on economic strategies and decision-making. 

This blog will explore how automation transforms accounting practices, its benefits, and the new skills accountants need to customise in this changing landscape. Understanding these changes is important for anyone in the field, as accountants’ roles continue to evolve alongside technological advancements.

What is Accounting Automation?

Accounting automation refers to the use of technology to perform accounting tasks that were traditionally done manually. This process involves software and tools that well organised various financial functions, reducing the need for human intervention and minimising errors. Common tasks that can be automated include data entry, invoicing, payroll processing, expense tracking, and financial reporting.

By automating these routine activities, businesses can save time and resources, allowing the role of accountants to shift towards more strategic aspects of their work. For example, instead of spending hours entering data or reconciling accounts, accountants can analyse financial information and provide insights that help guide business decisions.

Automation also increases accuracy by reducing the chance of human errors in calculations and data entry. Additionally, it provides real-time access to financial information, enabling quicker decision-making and improved cash flow management. As a result, the role of accountants evolves to focus on advisory functions rather than just transactional tasks.

Overall, accounting automation is about leveraging technology to create a more efficient and effective accounting process. It empowers accountants to take on new roles as strategic advisors while ensuring that routine tasks are handled swiftly and accurately. This transformation is important for businesses looking to stay competitive in a rapidly changing financial landscape.

Automation Tool in Accounting

The integration of automation tools in accounting allows professionals to shift from traditional, manual tasks to more strategic functions. By automating repetitive activities such as data entry, bookkeeping, payroll, and invoicing, accountants can focus on higher-level tasks like financial analysis and strategic planning. This transition not only increases efficiency but also increases accuracy, reducing human error in financial reporting.

Therefore, automation does not threaten the existence of accounting jobs, rather, it enriches the profession by allowing accountants to engage in more meaningful work. By embracing change, accountants can increase their roles, improve client relationships, and contribute significantly to their organisations’ success in an increasingly complex financial landscape.

Benefits of Automation for Accountants

Automation is transforming the accounting profession by well-organising processes, increasing accuracy, and significantly reducing the time required for routine tasks. Here’s how automation is driving this change:

1. Increased Efficiency and Productivity
   Automation significantly improves efficiency in accounting tasks. By using software to handle repetitive activities like data entry, invoicing, and reconciliations, accountants can save valuable time.
2. Increase Accuracy and Reduced Errors
   One of the most significant advantages of automation is its ability to minimise human error. Automated systems are designed to follow consistent protocols, which reduces the chance of mistakes that can occur in manual processes.
3. Improved Data Analysis and Reporting Capabilities
   Automation tools provide advanced data analysis features that enable accountants to generate insightful reports quickly. With real-time access to financial data, accountants can identify trends, assess performance, and make informed decisions faster than ever before.

Challenges Faced by Accountants in an Automated Environment

Automation brings efficiency to accounting but also introduces challenges that accountants must navigate.

1. Skills Gap and Need for Continuous Learning
   As automation reshapes the accounting landscape, many accountants face a skills gap. Traditional accounting skills, while still important, are no longer sufficient. Accountants must now be proficient in technology and data analytics to benefit from automated tools effectively. 
2. Resistance to Change within Organisations
   Another important challenge is the resistance to change that can occur within organisations. Employees disciplined to traditional accounting practices may be hesitant to adopt new technologies, fearing disruption to their routines or a loss of control over their work.

The Importance of Change in the Accounting Profession

Adapting to change is important for accountants to stay competitive, create innovation, and meet evolving client needs.

1. Adapting to Technological Advances
   The role of accountants is rapidly evolving due to technological advancements. Tools like automation, artificial intelligence, and cloud computing are important for accountants to stay competitive and efficient in their work.
2. Meeting Client Expectations
   Today’s clients expect more than just traditional accounting services, they seek proactive advice and strategic insights. By adapting to changes, accountants can provide increased services that meet these evolving client needs, helping strengthen relationships. This shift emphasises the role of accountants as trusted advisors rather than just numbers.
3. Improving Efficiency and Accuracy
   Change often brings new processes and tools that smooth workflows. By adopting automated solutions, accountants can reduce errors and save time on repetitive tasks, allowing them to focus on higher-value activities such as analysis and strategy. This efficiency increases the overall role of accountants in driving business success.
4. Increasing Career Opportunities
   As the profession evolves, new roles and career paths emerge. Accountants who hold change can position themselves for opportunities in areas like financial consulting, data analysis, and advisory services, leading to personal growth and career advancement.
5. Helping in Innovation
   A culture of change encourages innovation within accounting firms. By being open to new ideas and practices, firms can improve their services and maintain a competitive edge in the industry, solidifying the evolving role of accountants in shaping business strategies.

Nomi is a Strong cloud-based accounting software that provides a complete suite of automation tools customised for accountants and bookkeepers. These tools increase efficiency, Easy data flow between modules, and improve client service. Here’s a detailed look at the key automation features offered by Nomi:

1. Bookkeeping & VAT Software: Nomi’s cloud-based platform automates data entry and VAT calculations, significantly reducing the time spent on these tasks. 
2. Practice Management Software: This tool automates task allocation, deadline reminders, and progress tracking, enabling accountants to manage their workload more effectively. 
3. Final Accounts & Corporation Tax Software: Nomi simplifies the preparation of final accounts and corporation tax returns by automating these processes directly from bookkeeping entries. 
4. Payroll Automation: The payroll module automates submissions to HMRC, including FPS and EPS filings, making payroll management seamless. 
5. Client Onboarding Tools: Nomi increases the client onboarding experience with automated processes for KYC checks and engagement letter creation. 
6. Integration Capabilities: Nomi’s modules are interconnected, and remove data differences across various functions.

If you’re searching for software that helps in accounting practice, check out our offerings. During tax season, a number of features in our software are intended to increase client communication, optimise operations, and improve overall efficiency.

To experience the advantages of our software for yourself, sign up for a demo or use 30-days our free trial. Our team of experts is ready to walk you through the program’s features and help you assess whether it fits your business’s needs.