The impact of technology is changing the way we do things. Technology has made it easier for accountants to maintain their practices, as automated processes and high-tech systems transform how they work in a constantly evolving industry.
What are Accounting trends that will shape your future? Explore the top 14 trends now!
The accounting industry is changing, and the changes are rapid. For example, cloud-based software has increased adoption rates, Artificial Intelligence will soon be used to make sure double entries get recorded correctly without human intervention.
What does this mean to you as an accountant? It’s a chance to take advantage of new technologies that may not otherwise come around again.
Top 14 Accounting trends to pay attention in 2024
Here we come to the top 14 Accounting trends!
1. Artificial Intelligence (AI) has a strong impact on accounting
As companies continue to automate tasks, accountants are left with more time.
Artificial intelligence (AI) and robotic process automation enable finance professionals who specialize in routine work, such as analyzing lease contracts for information on the commencement date, or amount due at contract completion, to focus on higher-value activities instead.
They don’t have to search through large volumes all day long, it’s right there within easy reach.
See more» Emerging Technologies in Accounting
2. Accounting software
To make sure RPA is successful, transactional data needs to come from a number of sources and be formatted in different ways.
For example, there’s the need for harmonization, taking structured information together with semi-structured or unorganized pieces, so it can reside in one system.
This requires AI, too, because machine learning will only get done fast enough with vast amounts. And finally, accountants want these outputs trusted by them too: That’s where Accounting software comes into play.
Whether you’re an individual or a business, cloud-based accounting solutions provide the most accurate and up-to-date information. They also make it easier for company executives to monitor their finances in one place, so they know what’s happening with every aspect of operations.
See more» Best Accounting Software for 2022
3. The need for forecasting & planning, data analytics & visualization tools
Using budgeting, forecasting, and planning software, as well as data analytics tools is one-way accountants can increase their effectiveness in the workplace. These developments will help finance professionals be more analytical. They’ll have access to all kinds of information at once.
4. Digital technology
With digital technology, accountants and finance professionals are at the forefront of organizational transformation. They put processes in place to account for new revenue streams, and channels customers use more, such as subscriptions or e-commerce sales, rather than just physical product drop-offs into inventory.
All while managing changing conditions that can impact financial performance, like customer behavior trends due to social media’s influence on consumer spending decisions.
With these changes come many challenges and opportunities, one such opportunity being how we leverage tech investments made throughout our company.
5. Workplace wellness programs
Workplace wellness programs have been a popular perk for employers to provide their employees, but it can be complex if you’re an accountant.
For example, payroll managers and those in charge of keeping track of tax laws must make sure that discounts employees earn through wellness plans are noticed when it comes time to gross up their paychecks every month.
Instead, they need to include any savings from using such coverage as part of your employee’s salary.
Plus, if you’re looking to become more engaged with them. There’s no better way than to help their health improve firsthand, right?
6. Remote working
Cloud-based software is a great way to allow geographically dispersed teams to collaborate without having any physical barriers.
As accounting needs collaboration tools such as Zoom, fort, and functional communication programs for eSignature or cloud storage file sharing, this will be essential to accomplish critical financial processes like month-end close from anywhere with just your computer & an internet connection.
7. Accountants will soon become decision-makers
Accounting is a profession that has seen many changes in the past few years. In 2020, more transactional work will be automated, and accountants must increasingly rely on soft skills like leadership to make career decisions moving forward, with data analysis also playing an integral role.
8. Data Security
With data breaches on the rise, finance departments are now at risk. Identity theft and credit card information theft could also occur from these attacks. So, accountants must stay vigilant in their cybersecurity awareness training.
With an eye for detail along with a knack for spotting anything out-of-norm or suspicious, they make perfect candidates when looking into strengthening IT Security within your organization.
9. New tax policy
The COVID stimulus is just the latest in a string of tax policy and regulatory changes that accountants must navigate. These include New standards for PPP expenses, allowing astronauts to deduct their aboard costs and simplify the process under $150K loans.
All these trade policies can be tricky if you’re not aware at what point certain goods will no longer qualify, as they were previously taxed but now aren’t due to shifting tariffs or other factors.
10. The changes of shifting statutory and regulatory
Accounting and finance professionals need to stay on top of changes in regulations. The recent COVID stimulus legislation and leadership shifts at the SEC will likely impact how financial reporting requirements change. So, make sure you’re aware!
11. The appearance of Environmental, Social and Corporate Governance (ESG)
ESG is likely to be a major topic in the coming years, with new federal regulations pertaining specifically to climate-related risk and greenhouse gas emissions.
Major investors demand increased diversity across all aspects of your business, from finance to accounting processes. Professional trade organizations have been working hard to help accountants prepare for these changes that will also impact them greatly.
12. Accounting Standards updated
The Financial Accounting Standards Board (FASB) has issued a set of Accounting Standards updates for 2021.
The most notable change is that it will be possible to retrospectively account for asset acquisitions in certain circumstances, which could impact companies with recent purchases or investments on their books, who are seeking relief from an imminent economic downturn caused by high debts, amongst other things.
13. Active Accounting
The accounting industry is about to transform. The use of machine learning and RPA are replacing the traditional system for doing accounts.
This has created an opportunity where businesses can be more efficient with their time, while also improving data integrity by automating repetitive tasks that take place at specific points throughout each month or quarter, now done on a daily basis.
This new approach (continuous accountant ship) will save you money in payroll costs and allow your staff members some much-needed free moments. Therefore, they can focus when it matters most: rendering judgment calls regarding financial statement accuracy based on real-time metrics.
14. Outsourcing Accounting services
The act of outsourcing can often be beneficial for organizations in many ways. For smaller companies, hiring an outside firm is a way to avoid increasing headcount and costs while still having access to hiring skilled personnel with specialized knowledge.
This would otherwise cost you time or money trying to replicate themselves internally if they needed experience working on such projects before coming on board.
Larger enterprises might choose account payable processing through external vendors because it’s cheaper than building out infrastructure internally. This also gives them more flexibility when looking into new technologies since some big names may also exist.
- Outsourcing Finance and Accounting Services: The Complete Guide
- Outsourcing Accounting Services for Businesses: Pros and Cons
More and more businesses are outsourcing their Accounting functions
The accounting industry has seen a major talent shortage in recent years. This is due to the nature of this work being highly specialized and technical, which means that firms must rely on outside service providers for qualified professionals.
Innovature BPO’s Accounting Services can meet firms’ needs quickly without costing them too much money, or taking up precious time when they’re already struggling with other issues, such as business development and client experience excellence.
Outsourcing these less-lucrative tasks lets firms focus more on higher-level activities, where you provide clients, not just accurate reports but also assistance handling transactions across various functional areas within the organization.
The accounting industry is constantly evolving, and it’s all about technology this year. With BlockChain becoming more popular daily, at least one accountant in your office is using big data to provide better services for clients. Many changes are happening that you can take advantage of if incorporated into the way your firm operates!