RegTech helps accountants automate processes. This automation ensures accountants can eliminate repetitive tasks. Plus, it empowers accountants to become more productive and efficient than ever before.
The benefits of RegTech for accountants extend beyond automation. Now, let’s look at five reasons why accountants are increasingly embracing RegTech.
For accountants, accurate reporting of financial information is paramount. Accountants are subject to compliance requirements from the Securities and Exchange Commission (SEC) and many others. And failure to maintain accurate financial records exposes accountants and their businesses to compliance penalties.
Accountants can use payroll software and other RegTech tools to track business transactions. If any compliance issues are identified across these transactions, accountants are notified accordingly. From here, accountants can evaluate such issues in depth. If compliance issues are present, they can immediately resolve them.
In addition, RegTech tools can help accountants lower their compliance costs. These tools can be implemented across accounting operations. They can then be used to track regulatory events, how frequently these events occur, and if they warrant changes to internal policies and procedures. In doing so, the tools help accountants guard against issues that can otherwise lead to costly compliance violations.
Cybercriminals frequently launch malware, phishing, and other types of cyberattacks against accountants. They do so in the hopes of obtaining sensitive financial data. If cybercriminals’ attacks are successful, they can use this data for identity theft and other malicious activities.
Accountants can leverage RegTech and cybersecurity tools in conjunction with one another to drive digital transformation. For instance, accountants can utilize RegTech and cybersecurity tools to understand security activities. Next, they can discover potential security gaps and find the best ways to address them. As a result, accountants can optimize their security posture.
3. Fraud Prevention
Accounting fraud occurs when someone illegally alters a company’s financial statements. In this instance, financial statements may be altered to hide a business’ profits or losses. Accounting fraud can lead to mismanagement that hampers a business’ growth. Perhaps worst of all, accounting fraud can cause a business to mislead its shareholders, resulting in serious legal ramifications.
With RegTech tools, accountants can combat fraud. RegTech tools enable accountants to monitor all aspects of financial transactions. Also, RegTech tools equipped with advanced analytics and artificial intelligence can provide accountants with insights into these transactions. Accountants can use these insights to ensure financial transactions are handled with precision and care.
RegTech tools let accountants automate financial audits and other tedious work tasks. The tools help accountants focus on what is most important: completing high-value tasks to the best of their ability every day.
Accountants can use RegTech tools to free up time, energy, and resources for high-value tasks. For example, accountants can leverage RegTech tools to capture audit analytics for a year. This ensures accountants can perform regular audits with speed and precision, any time they choose. Furthermore, accountants are well-equipped to produce accurate audits consistently and maximize their workplace productivity and efficiency.
RegTech tools can also reduce the risk of burnout and exhaustion among accountants. The tools can help accountants minimize or eliminate the stress of completing repetitive work tasks. Thus, accountants can use the tools to avoid these tasks and the stress associated with them. They can then feel great about their jobs, become more productive and efficient than ever before, and reap the benefits of rewarding careers in accounting.
5. Employee Surveillance
The coronavirus (COVID-19) pandemic has led many businesses to let their accountants work remotely. It has raised concerns about tracking accountant oversight. Businesses want to ensure their accountants can handle daily tasks without compromising security. At the same time, they must verify their accountants can remain productive and efficient, regardless of location.
RegTech tools support employee surveillance. The tools allow accountants or their employers to survey financial records automatically. That way, RegTech tools ensure financial transaction anomalies can be identified and investigated without delay.
How Can Accountants Get Started with RegTech?
RegTech tools are available to accountants around the world. Regardless, accountants must learn as much as possible before they start using these tools.
Initially, accountants can review research from RegTech firms. This research highlights how RegTech tools work and how they can be used to address regulatory obligations. It also explains how accountants can utilize RegTech tools for digital transformation and other business growth opportunities.
As accountants become acclimated with RegTech tools, they can browse the options at their disposal. RegTech tools can be used for myriad business applications. With a clear understanding of various RegTech tools, accountants can select the right ones to support their day-to-day activities.
Finally, accountants should monitor the RegTech industry. Accountants who track the industry can understand how RegTech will impact accounting and other sectors moving forward. They can then implement appropriate RegTech tools that help them keep pace with regulatory requirements.
The Bottom Line on RegTech for Accountants
RegTech can be a difference-maker for accountants. Yet accountants must consider RegTech tools that align with regulatory mandates. This ensures accountants can select RegTech tools that support regulatory initiatives. Furthermore, they can utilize tools to automate repetitive business processes.
Explore RegTech tools for accounting today. Next, accountants can leverage RegTech tools to maximize their productivity and efficiency.