Trends and techniques in accounting are always changing, especially as new technologies emerge. SAGE has found that 90% of accountants think accounting is going through a cultural shift that favors technology. This is because automation and high-tech systems are changing the future of accounting.
As you grow your accounting practices, outsourcing is the perfect way to decrease costs, increase efficiency, and boost profitability. Here are all trends you need to know to make the most of accounting outsourcing for your firm.
If we look at the future of accounting, technology may still be a few inches away from the accounting world. Still, it has already started to work and adapt to these new developments. We are moving quickly toward accounting industry trends with advanced technical fixes like cloud-based subscriptions, on-premise solutions, and Software-as-a-Service (SaaS).
So, let us look at those future trends of financial accounting outsourcing.
As accounting firms and their clients share more information electronically, accounting firms must protect themselves from cyber threats and other data security problems. One way to do this is to ensure their employees know data security.
Cloud-based software is a cheap and scalable way to store data online in a secure way. This makes it easier for accountants to get to their work on the go or at home.
Accounting firms should also set up systems that require two forms of authentication so that only authorized users can get sensitive information because accountants and clients share so much confidential financial information.
Focusing on data security will help organizations protect their customers' most valuable asset, which is their customers' financial information.
The cloud and Accounting services are now two things that most businesses can't do without. Accounting systems hosted on the cloud have made it easy for many companies to access their digitally hosted system anytime and anywhere.
The effect of accounting trends can be seen in the graph below, which shows that the answer is correct.
The Practice of Now" by Sage. In it, 67% of accountants agreed that cloud-based solutions have made their work easier and better.
In another report by Accounting Today, 58% of organizations saw and accepted the benefits of moving to the cloud and are now using cloud-based accounting systems. This proves the importance of the cloud in accounting streams.
In this age of modernization and digitization, there is no doubt that the need for good financial software is growing. As a result, the market for business accounting software is expected to grow 6% per year from 2020 to 2024.
Technology is more important than ever if you want to keep up with the market and stay ahead of the competition. For example, SMEs can look into accounting and finance software that can help them right away with things like managing cash and spending, keeping track of billing and invoicing, and processing payroll.
Finding the right people in finance and accounting is getting harder and harder. Because of this, it is even more important for businesses to expand how they search for and hire candidates.
A poll done in 2021 shows that more than 80% of CPA firms plan to let employees start working from home even after the pandemic. Before, this wasn't possible. As technology improves, accounting systems emerge, and accountants who work from home can do just as well as those who work in offices.
Look at the below graph:
The 10th Annual Flex Jobs Survey, done from July to August 2021, found that 58% of respondents want to work full-time from home after the pandemic, while 39% want a hybrid work of this, top companies aren't getting the best accountants. As a result, finance experts have started to use more advanced technologies to make up for the problems listed above and increase the firm's profit.
And a classic example that comes to mind is a setting where people work from home. Most of us will agree that most of the costs have been cut by embracing remote work and digital accounting trends and techniques. Plus, it has made the whole progression better.
Accountants and Chief Information Officers (CIOs) agree that artificial intelligence software is one of the new technologies that will shape the industry's future.
A survey by Harvey Nash/KPMG found that 20% of accountants now invest in and use AI technology. Another 20% said they planned to use AI within the next 12 months (Sage, 2020). On the other hand, 47% of CIOs think that the COVID-19 pandemic has sped up digital transformation and increased the use of new technologies like AI, machine learning, blockchain, and automation.
AI runs mostly on data, so businesses need to get good data. This will enable businesses to get accurate business intelligence, giving them an edge over their competitors.
Blockchain technology is a distributed ledger that makes transactions safe and impossible to change. As a result, it will probably change how many businesses work.
Blockchain technology is already changing accounting, making it cheaper to reconcile and maintain ledgers. In addition, this technology will likely be used for audit trails, payments, and billing, reducing the need for banks and auditors to act as middlemen.
Statista thinks that by the end of 2022, U.S. companies will have spent around $1.1 billion on blockchain technology. In addition, the report mentioned that
“The financial sector accounted for around 30 percent of the market value of blockchain worldwide in 2020.”
So, as the business appears differently, accountants need to know how technology works.
In today's fast-paced business world, trying new ways is important. With the rise of data analytics, accountants are being asked to do more than just report on finances.
Business owners want to know how they can make more money, save, and give better service to their customers. As a result, many accountants also act as advisors and consultants in these areas.
Data analytics leads to better and more efficient systems, which saves time and money. Accountants can better understand the process and suggest ways to cut costs and save time if they can look at financial results quickly.
Accountants can also use predictive data analytics to set prices and make better forecasts that help business owners know what to expect in the future. They need to become more strategic and move toward projects that will help their businesses run better and make more money.
Accounting and social media may seem like strange partners, but networking is important to the success of almost every business. Even the most traditional people used social media to talk to potential clients post-pandemic. Likewise, social media sites help accounting firms build their reputations, get more people to visit their websites, and make new contacts. With social media, the accounting industry needs to catch up to the rest of the business world.
If your finances are bad, you will need to spend a lot of time on your tax calculations to ensure they are correct. However, you can automate your tax filing with online software and tools, keep track of your tax returns, and make bookkeeping easier.
One can figure out how to use these apps on your own or with the help of an accountant. In either case, filing taxes online is a useful and easy way for small businesses and SMEs to get their taxes done. But, as with any technology solution, it's important to ensure that the person using these systems for a business knows how to use them properly and professionally.
Accounting and finance have always overlapped, but as the accounting field becomes more focused on data analytics, more accountants are moving into advisory positions. In addition, accounting technology has improved so that accountants can give their clients more accurate information.
One way accountants might keep from being completely replaced by computers, in the long run, is by using the right technology to help businesses. Unlike other accounting tasks, making decisions will always be in the hands of experts and professionals.
More than ever, innovations and improvements are moving the accounting field forward quickly. From the view of accounting services and streamlined finance tasks, the above trends are just some of what businesses should expect and consider enhancing in 2022 and beyond. As a business owner, one of the most important things you can do to set your business up for growth and success is to use all the technology you can. Moving to a cloud-based automation system and outsourcing accounting services is the best thing you can do for your business. Contact Invensis Technologies right away to find out if our client accounting services could help your business grow faster.