One of the most important things for forward-looking accountants and their firms is to stay up-to-date on the latest news and trends in the field. Even though the world took a sharp turn when the pandemic hit at the beginning of 2020, that didn't stop things from evolving in the accounting field. In fact, many accounting firms rose to great heights despite the hardship caused by the pandemic.
Many accounting firms discovered after being forced to have employees work from home due to pandemic mandates that this remote working situation actually improved some aspects of the workforce. Some firms have even made this a permanent situation, or have split the time employees spend in the office with equal time working from home.
The stability of accounting firms and their employees' adaptation to working from home conditions proves that accountants are a versatile bunch, and with the ever-changing landscape of accounting, versatility is a crucial attribute for accountants to possess. In very few other niches do workers and owners of accounting firms need to stay up-to-date with the latest changes in the field as accountants do in order to stay relevant and also to stay within the letter of ever-changing tax rules and laws.
Remote work is just one of many trends happening in the accounting field. Today on the Rules of Thumb blog from MoneyThumb we will go over 8 current trends in accounting that by following you and your accounting firm can stay ahead of the curve in 2022.
1. Automation:
A major industrial trend is to automate more accounting functions. Firms are more likely to invest in automated solutions because automation removes ambiguity and reduces inefficiencies. Accounting automation also aims to assist companies in making statistics choices faster.
Automation and high-tech systems guarantee a commercial influence on many accounting executives and CPAs. According to a survey, over 90% of accountants believe that accounting is experiencing a transition toward more technological usage. Several reasons have contributed to this transition. According to the research, it occurs due to marketing needs, laws, generational shifts, customer requirements, and expenditures made by firms to stay up with the accounting industry.
Furthermore, since the process is primarily reliant on computers, firms risk the chance of falling prey to a scam and having their privacy confidentiality breached. As a result, the need for internal auditors to verify data inconsistencies has skyrocketed. So farewell to any job security concerns by in-house accounting services. Bots are not going to replace you. Not anytime soon.
2. Data Analytics:
The accounting business is diverting its attention to data analytics as automation makes specialized accounting jobs simpler.
- Accountants embrace extra challenges as consultants, requiring distinct expertise centered on data analysis.
- Accounting companies use data analytics for taxation, advisory, risk evaluation, audit, inspection, and reporting.
Businesses may gain insights by analyzing data, which allows them to discover operational efficiencies and boost productivity. It, in turn, assists them in getting rid of potential liabilities.
3. Social Media Marketing:
The influence of social media is prominent in various niches, including accounting. It assists in raising brand recognition, enhancing sales, and generating online traffic on websites and pages.
It is gradually becoming a significant advertising and marketing technique for accountants, allowing them to increase their visibility, earn some repute, display their competence, and explore more about the business.
4. AI & Accounting; A perfect Duo
Artificial intelligence provides rapid analysis of massive amounts of data ensuring higher efficiency and generating more reliable statistics at a cheaper rate.
The role of AI in accounting is gradually increasing as it improves workflow, administration, and accounting operations, resulting in various modifications.
Many businesses employ artificial intelligence (AI) and RPA to automate mundane, time-consuming processes. Researchers also believe that AI is not taking over human professions very soon. Instead, AI will support humans in making decisions and enabling valuable and detailed assessments.
5. Remote Work Setting
Accounting firms are experiencing more difficulty hiring top financial and accounting professionals in the post-COVID era since many prospective employees want a remote work setting. Consequently, accounting talent remains in demand, and many accountants get to set their terms of hiring.
The accounting industry, as a result, also experienced a more non-geography-based hired staff, and people from vast backgrounds availed the opportunity to work with each other and collaborate their ideas.
6. Cloud-based Accounting
Cloud accounting is among the most influential accounting trends, and every company wants to include it in its infrastructure. And why wouldn't they, when cloud accounting allows you to keep track of your finances online with a cloud-based accounting solution? Only individuals with authorized permissions may access the data, which is encrypted.
Here are some of the advantages of cloud accounting:
- It automatically loads all the data concerning your total revenue from your bank account to the cloud server.
- Reviewing is just a click away from anywhere in the world.
- Multi-user access allows working in perfect sync with your colleagues and advisers digitally.
- The dashboard uses convenient charts and statistics to display essential accounting data.
7. Forensic Accountancy
Few people are aware of the concept of forensic accounting, one of the most recent accounting methods and developments. Security agencies or corporate accounting companies use forensic accountants to monitor, identify, and examine fraudulent practices such as scams, extortion, tax evasion, and money laundering. They are skilled and knowledgeable in accountancy, legal laws, and information technology.
8. Blockchain
If you are unfamiliar with the terminology, blockchain is a decentralized digital record of transactions that spans a whole network of software systems. The transactions present on every block of the chain are available to each participant.
Regarding its significant interaction with ledgers, blockchain is one of the most current accounting developments. The preliminary use of blockchain is to keep track of financial data in a ledger account. It also takes charge of asset transfer in a safe and verified fashion.
Looking Ahead at Accounting
The accounting profession has a very bright future. In the upcoming years, the accounting field will flourish like never before and achieve greater heights. If you are considering a new career field, accounting is a sure bet, for there will be many positions for those with accounting degrees.
As far as accounting firms go, it is now more crucial than ever that firms keep up with the competitive marketplace and latest trends in order to earn brand recognition, revenue, and stay ahead of the curve. If your accounting firm has the above 8 trends well covered consider yourself doing things just right.
References:
https://www.accountingtoday.com/list/the-year-ahead-2022-in-numbers
https://www.ottawa.edu/online-and-evening/blog/october-2020/5-key-accounting-trends-for-2020
https://www.netsuite.com/portal/resource/articles/accounting/accounting-trends.shtml
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