Accounting and audit technology is changing the way many conduct business and how data is analysed. When used intelligently, it can deliver real benefits to renewable energy companies and the wider society.
As the renewable energy sector expands, the importance of accurate accounting and audit technology has become increasingly apparent. Technology is essential in ensuring the accuracy and efficiency of accounting and auditing processes for renewable energy. With the roll-out of cloud computing and cloud storage, it’s now possible to collect and analyse data on a previously unimaginable scale.
Daniel Proctor, Audit Manager, states that “the audit process is increasingly looking to leverage the large amounts of available data to improve efficiencies and quality. Technological advances make it possible to analyse data in greater detail, helping auditors focus on the critical risk areas and identity outliers within the client’s financial data.”
Technology is facilitating new business models and changes to the daily operations of renewable energy companies.
What are these accounting and audit technologies, and what impact are they having?
Cloud accounting
Companies that utilise cloud accounting systems can easily share vast amounts of information with their auditors at the click of a button, enabling greater audit efficiency. Clients can grant their auditor access to information quickly and easily, meaning audit teams no longer need to chase for purchase/sales invoices and other support documentation.
If you are implementing cloud accounting systems for the first time, seek professional advice from your accountants, they can guide you on preparing the supporting documentation to maximise the benefits and efficiencies of the audit process.
Artificial Intelligence (AI)
AI can potentially transform the renewable energy sector in the future by providing faster and more accurate data analysis, identifying patterns and trends that would be impossible for humans to discern.
By analysing data from multiple sources, AI algorithms can detect potential equipment failures or maintenance issues before they occur. Preventing costly downtime ensures the continuous operation of renewable energy facilities. Using predictive analysis techniques, AI can potentially help renewable energy companies better manage demand in the future.
We expect to see AI helping auditors optimise their time whilst working smarter, enabling them to use their human judgement to analyse deep data and documents.
Blockchain
Blockchain is a decentralised ledger system that can securely record and track transactions, making it ideal for verifying the origin and ownership of renewable energy certificates (RECs) and carbon credits. This can help prevent fraud and ensure that renewable energy is accurately accounted for and properly credited to the organisations and individuals that produce it.
Blockchain provides new challenges and opportunities for companies and auditors alike. As an emerging trend, blockchain technology can impact recordkeeping processes and change back-office activities such as financial reporting and tax preparation.
Cyber Security
A potentially negative impact of technology is the increasing complexity and sophistication of cyber threats. This makes it essential to take significant steps to secure renewable energy systems and data. Cyberattacks can lead to data breaches, system failures, and other disruptions resulting in financial losses and environmental damage. Cybersecurity measures must be implemented at every level of the renewable energy system.
Many audit committees and boards have set expectations to assess and understand an organisation’s capability to manage cybersecurity risks. Renewable energy business owners should engage with audit professionals with the technical skills, in-depth knowledge, and understanding of the risk environment.
Data
One of the key challenges of managing data in the renewable energy sector is the sheer volume of data generated. As renewable energy systems become more complex and sophisticated, they generate vast amounts of data that needs managing and analysing effectively to ensure accurate accounting and auditing.
Data is the backbone of the renewable energy accounting and audit process, from monitoring energy production and consumption to tracking financial transactions and compliance.
Adapting to the next digital era
Once renewable energy companies have identified their needs, they should develop a technology strategy that aligns with their business goals and objectives. This involves evaluating available technologies and selecting what best meets their needs, budget, and timeline.
Wilder Coe has incorporated other technologies into the standard audit approach, including electronic requests of bank audit letters and using an online portal to manage audit queries, which reduces exchanging emails and helps improve the client’s audit experience.
At Wilder Coe, our team of renewable energy specialists will help ensure your organisation can maximise the potential of advanced data analysis and other technologies.
Although not all these data tools are frequently utilised together, we are a proactive firm with the expertise and knowledge for future technological changes that can impact your organisation.
In a complex sector, we help you meet your compliance obligations, confident that you have robust processes to demonstrate your organisation’s accountability and financial propriety. Contact us to arrange a free consultation to discuss your accounting and audit technology needs with our renewable energy advisors.
