6 Trends Accountants Should Watch Out For
The incorporation of technology is changing almost every major professional field, and accounting is no different. Over the last few years, AI, machine learning, and many other technologies have advanced rapidly, allowing them to transform conventional practices significantly. Although a human touch is still mandatory, accountants have their work cut out with all the latest software and cloud-based solutions.
Although the demand for accountants in the job market continues to grow, their responsibilities do, too. According to statistics made available by Sage, a cloud business management solutions provider, 82% of accountants say that their clients demand more excellent value for money and the extent of services these days. Moreover, 67% of accounting professionals believe their field has become more competitive nowadays than ever.
Top 6 Trends Accountants Should Watch Out For
Things are changing for accountants globally. So, what are the trends that professionals should look out for? Here are a few:
Cloud-based accounting solutions
Cloud computing allows small and large businesses to streamline various internal and external functions. As per recent statistics, 53% of accounting companies already use cloud-based solutions to enhance communication and introduce greater efficiency in their project management department. On top of this, 67% of businesses feel that their sustainability and ability to better carry out roles in the future will improve through cloud technology.
Naturally, since the role of cloud computing is already this extensive and growing further, accountants need to be on their toes concerning it. Professionals who are relatively new to cloud-based solutions can start to learn more about them through digital resources like the MACC online programs. These courses combine flexibility and time efficiency to help professionals diversify their skill sets to encompass the newest trends.
Digitalization and automation
Digitalization has become a fundamental part of modern businesses for the past few years, especially since the COVID-19 pandemic. Thankfully, accountants have been privy to this trend for a long time. A vast array of online tools has enabled accounting professionals to efficiently execute their tasks more quickly than ever before. This trend of automation and digitalization will only continue, even gathering steam as time progresses.
In accounting, 86% of tasks like journal entries and ledger balancing can undergo automation thanks to the sophisticated tools available on the market. Even a basic Excel sheet can automate many tasks accountants had to perform manually a few years ago. Since much of accountants’ work can be simplified through automation, like the manual retrieval of financial records and verifying transactions, professionals must stay up-to-date with this change.
Growing focus on analytics and data management
Data has become one of the most valuable currencies of the modern age. Still, raw data is of little use to businesses. As a result, there is a growing focus on analytics as this function allows random numbers to make sense for people to use in strategic decision-making. This fact holds essential relevance to accountants because they have access to some of the most critical data in the company. Through analytics, past performance can be evaluated, and future projections estimated according to it.
As time passes, businesses will require accountants to focus more on analyzing data to gauge and assess future financial figures. This data allows companies to track their goals and objectives and achieve other business aspirations like expansion or consolidation. Therefore, the focus on analytics is another trend that accountants should consider.
Digital bookkeeping
Although this trend has existed for many years, experts predict it will continue to expand. Paper is increasingly becoming the less preferable medium for recording transactions. Some companies still keep physical records of their financial statements, but most have shifted towards paperless bookkeeping for many years. The companies that currently keep paper records will eventually go digital completely, so this is something that accountants need to be ready for.
The expanding role of social media
Most people believe that social media can’t possibly impact accounting. That is exceptionally far from the truth. Social media, in particular, and digital media, in general, are the most effective advertising medium. Accounting firms are no different as these platforms offer them extensive reach, the ability to engage with existing and prospective clients, and the ability to communicate critical messages about the firm to the world.
Using social media, accounting businesses can get their word out. At the same time, it also allows them to portray themselves in a manner that can attract new talent. Job demand in the accounting field continues to grow, and promoting the firm’s culture, work ethics, and portfolio on social media allows future employees to take an interest in working for the company. This trend has been around for years and will only continue to evolve.
Integration of Blockchain technology
The world of cryptocurrencies still inspires hot debates amongst financial experts. And while the volatility of this market keeps many at bay, there is consensus that the underlying technology that powers many cryptocurrencies is here to stay. Known as Blockchain technology, this decentralized ledger system is already entering the financial world. From remittances to record keeping in the financial industry, a lot is being done through this technology.
With experiments that continue, experts predict that sooner or later, the role of Blockchain will grow further, especially in the field of accounting. Since this technology allows more efficient record keeping and provides higher quality data, accountants find numerous advantages to working with it. Additionally, altering information stored on a Blockchain is nearly impossible, making it a life-saver for finance and accounting professionals continuously dealing with threats from hackers and other cybercriminals worldwide.
Conclusion
Most of the evolution of the accounting field is because of state-of-the-art technology solutions. As time passes, many trends like automation, integration of Blockchain, focus on analytics, and digital record keeping will expand even further. For accounting professionals to stay relevant in their jobs, they need to be aware of these shifting dynamics and adjust their skill sets accordingly. Not only does this allow them to embrace a stronger position, but it also allows them to grow their career substantially.
