New technologies and breakthrough innovations are disrupting the industry landscape substantially which has led the global economic environment to evolve continuously. Businesses need to be aware of the recent trends, technologies, tools, and techniques in order not only to survive but also thrive.
Technological advancements such as automation, cloud solutions, and mobile applications have optimized numerous business processes and functions, be it human resource management or accounting. Accounting is considered as one of the crucial business functions as it acts as a key driver for a business’s decision-making process and strategic initiatives. As the accounting industry landscape is also going through the paradigm shift, modern-day accountants need to stay appraised about the recent trends in accounting.
Let’s have a look at some of the modern trends in accounting:
Automated Accounting
Automation technology is no secret as today’s tech-savvy generation has become well-versed with it, be it automating calls to using ‘Automated Teller Machines’. Businesses across the globe are attempting to harness the ultimate potential of automation to make their business functions seamless, robust, and efficient and the accounting space has witnessed some of the growth-driving impacts as well.
Here, look at some interesting accounting facts and trends. While close to 90% of accounting and finance professionals feel that certain accounting tasks can be carried out with the help of AI and digital assistants, a Forbes study reinstates the fact that some of the labor-intensive accounting tasks such as tax preparation, audits and banking will be fully automated as 2020 approaches.
So, accountants, buckle up to get on the upward growth curve with automation and AI.
Cloud-based Accounting Software
Like automation, the concept of cloud is also well-renowned in the tech space. While cloud-based software, solutions, and platforms are set to gain momentum, cloud-based accounting software is going to see wide-scale adoption. Modern-day accountants need to let go of the conventional methods of accounting and embrace the new trends in accounting. These cloud-based accounting solutions have made financial and accounting data available at the fingertips, accessible, 24*7.
Blockchain
Are you wondering if there is anything beyond automation and AI that can revolutionize the accounting and finance sector? Then, you are in for some good news! Blockchain is fairly a recent breakthrough innovation that has changed the way financial transactions are done. This technology trend eliminates the need of the intermediary such as a bank or a financial institution in the process of a fund transfer. It is a distributed ledger that aims at preventing fraudulent transactions.
Though this is one of the accounting trendsthat are still in a nascent stage, it is forecasted to play a vital role in the accounting industry’s way forward. So, accountants, keep your horizon open to unleash the true potential of this technology to stay ahead in the growth curve!
Integration
Gone are the days of standalone business functions. As new technologies and trends make their appearance in the business landscape, integration and cohesive nature of key business functions are vital. Accountants, if you are wondering how integration concerns you, then here’s your answer. Modern accounting solutions come with excellent integration capabilities that ensure that accounting function can be seamlessly associated with other business functions. And, the cherry on the top is that it enables timely recording on accounting entries and better management of transactions.
Outsourcing
The concept of outsourcing is gaining ground, and rapidly as it enables businesses to concentrate on their core competencies while third-party service providers take care of their routine and redundant business functions. With this trend making rounds in the market, businesses are considering outsourcing their accounting functions, either partially or fully to trusted and efficient outsourcing service providers.
Data Analysis
Data-driven insights are the key drivers of a business’s decision-making prowess and with the introduction and adoption of data analysis tools and technologies; it has grown in popularity as well. Finance and accounting-related information has always been a crucial component for businesses and the focus on data analysis of the underlying accounting and financial information is becoming one of the major accounting trends as 2020 unfolds.
Social Media Alignment
You might be wondering how accounting and social media are related. Well, when social media is crucial in personal branding, why can’t it be leveraged for professional branding purposes? Accountants have been leveraging social media outlets to communicate with their peer community, collaborate on the recent trends and developments concerning their space.
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