Key trends in finance software: can man and machine learn to coexist in harmony?

Plenty of businesses make financial decisions based on instinct, habit or bandwagon mentality.  However, according to finance software provider iplicit’s comprehensive publication on key trends in this space, AI is only going to be more and more prevalent in our daily and working lives.

iplicit interviewed key people in finance and accountancy, asking what they see as the main trends in finance tech and software in 2024 and beyond. Included in this list were Moore Kingston Smith’s Director of Business Outsourcing Nicola Savill and Software Advisory Manager Simon Woodhams.

Here, they summarise the key trends in the space and how they will evolve over the coming years.

Humans – self-obsoletion?

Naysayers fear that humans have created something cleverer than us that will replace us. While no dam will withhold the inevitable AI inundation, it is the companies who are proactively shaping its future who will be the winners.

As AI becomes ever more widely used, it will be important to understand the risks of becoming over-reliant on it. Without clear policies in place on how to interpret the data and when to question it, companies could end up facing difficulties in the future.

Another key consideration is training for the new generation of professionals. Businesses need to shape what their services will look like, providing assurance and focus on unique detail and specific nuances, building relationships and emotional connections, rather than providing basic answers and solutions that AI will generate.

Integrations: everything fitting together

Implementing the best finance software solution for each specific business’s needs rather than the best-of-breed application for each function is the first step. Solutions should be customised to each company’s requirements.

Although integrating multiple applications into the finance software can solve problems, they often bring more with them. Having everything in one place is often the more cost-effective and efficient solution. Having all systems connected – from CRM, website and sales to account solutions – will give you the clearest picture of how your business is performing.

Smarter banking and online transaction declarations

As available capital gets squeezed tighter and tighter, people are increasingly going to need loans to bridge gaps in spending power. Traditional banking systems need to get smarter in terms of the approval process, especially with the rise of smart platforms such as Capitalise.

Meanwhile, reducing friction of trade is already being addressed, with the aim of reducing deception, such as VAT fraud. As global trading borders become more porous, safeguards need to be stronger.

Gulf between early adopters and everybody else

Basic economic movements shape the environment for every business and can pose a threat to survival, such as rising costs. Businesses making intuitive decisions will find themselves getting left behind because more insight is needed.

Enhanced management reporting can make the difference between a business being able to plan robustly for when the going gets tough or just surviving.

Automation can make our business more human

Companies at the vanguard of the AI revolution will, essentially, become even more human. They will embrace AI for its strengths in finance software applications but keep a firm grasp of its falabilities and drawbacks. They will realise they can’t fully rely on AI and will have the right blend of tech-fluent and life-experienced people. They will monitor the significant ethical implications and create policies to eradicate bias and non-human logic.

Early adopters will get a head start on recruitment and reward opportunities. They will know that tech-savvy generations want to work quickly and efficiently and have grown up with the latest tech. Additionally, the rise of ESG reporting is already on most company agendas, but this whole area of tech is, as yet, not being fully exploited.

Help from the experts

Moore Kingston Smith has a dedicated team of outsourcing specialists who can help you navigate the ever-changing business landscape. Our outsourcing solution combines cutting-edge technologies with our unique insight and advice to help you make the right business decisions.

For further information or an initial no-obligation chat, contact Nicki Savill, Director of Business Outsourcing; Simon Woodhams, Outsourcing Digital Innovation Lead; or Lucy Williams, Outsourcing Manager.