Like every other business sector, the accounting realm is rapidly changing. This change is rapid and driven largely by lightning-fast developments in technology. In many ways, the recent pandemic has sped up that adoption. For instance, wider acceptance of cloud-based accounting software, as well as a move toward AI and automation.
While many of these changes are a response to recent events, ever-changing tech is the gist of these accounting trends. Here’s an overview of the major accounting trends for 2021 and beyond to help you stay one step ahead.
Money make the world spin, so regardless of whether you personally view it as a lucrative goal or just a necessary evil, they need to be kept at the forefront of thoughts.
In today’s all-tech business realm, you have two choices: handling everything through pen, paper, and basic spreadsheets or investing in a reliable accounting software.
The latter isn’t a new trend, though the switch to cloud-based accounting software and related resources is. Switching to accounting software can help streamline operations by fusing your accounting system with your financial data. Using a cloud-based (enterprise resource planning) ERP application will help you eliminate redundancy business-wide. Why spend valuable time worrying whether your data integrates with other systems when you can spend that extra time growing your business? Take QuickBooks. A powerful and not as intimidating accounting software. You can rely on their advanced set of capabilities to offer 27/7 chat support and capture receipts so you can focus on growing your business.
QuickBooks integrates seamlessly with apps like Shopify and PayPal to automatically populate your account with annual transactions and sync in with business transactions on an hourly basis.
AI is rapidly becoming a part of businesses’ daily operations, with product recommendation engines and chatbots already in widespread use.
Recent findings hint that 27% of business decision-makers say that implementing AI makes for more meaningful and creative work among employees. As for accounting, there is no getting around the fact that AI is here. Across industries, there’s consensus that AI will have a substantial impact on finance and accounting.
Businesses global-wide are relying on AI and RPA to automate mundane, highly repeatable tasks, allowing accountants to focus their time on higher impact and higher-value activities. Accounting firms are now relying on AI systems to analyse lease of contracts, capture information on the amount and date to be paid, termination or renewal options and allow accountants to spend more time on making more informed decisions. But for an AI system to be successful, it needs to be harmonised with semi-structured and unstructured data within a single system. And that’s where the best accounting software comes in. Harmonising AI with an accounting system makes for better and faster decision-making regarding money management.
Online Collaboration and Remote Workforce
Implementing AI and cloud-based accounting software can also help streamline the remote workforce. No longer do staff members and accountants need to be in the same building to complete their assigned tasks.
Cloud-based applications are here to stay and provide collaborative tools like Zoom to facilitate communication between management and key staff members, allowing everyone the freedom to operate from anywhere.
Increased Data Security
When we consider how frequent and damaging cyber-attacks are, it’s no surprise that cybercriminals are swiftly becoming real-life monsters. Even so, insider cyber threats can do the same, or greater damage to the accounting data. Recent findings hint that 60% of internal database breaches were done by individuals who were not in management roles. These employees chose to steal data and had all the means to do so.
Data breaches are riskier than ever, and accounting departments are one of the leading targets. Some breaches can lead to stealing of personal data, identity theft and credit card information, and spoofing, which is an email well-disguised to trick you into thinking it comes from a known or trustworthy source.
Training employees in recognising potentially spotting attacks and harmful emails will continue to be crucial for accounting teams, who are already skilled in looking at the spotting anomalies and details. Therefore, innovative accountants can share the importance and become champions of cybersecurity within organisations.
Outsourcing Accounting Services
Businesses, startups and managers worldwide find it challenging to hire accountants. In 2021, it’s even more challenging to find an eligible and qualified professional at an affordable rate.
More than 1/3 of small organisations are outsourcing their accounting. Even though it’s commonly believed that bookkeeping and accounting must be done inside the business, most businesses don’t feel comfortable doing accounting independently.
Due to this fact, small businesses consider outsourcing accounting services to a company with greater qualifications and the right knowledge. More often than not, outsourcing offers companies the possibility to hire professionals with a great level of expertise at an affordable price. These firms continuously improve the skills and qualifications of their accounting professionals in order to stay competitive in the market. Picture more than 50 people working in the same office, who can easily share the latest accounting trends, solutions and tools.
Businesses who rely massively on accounting services should consider outsourcing accounting and bookkeeping if:
- The organisation does not require a full-time accountant but needs a person with more skills than a receptionist or office manager can provide.
- The business cannot find a full-time bookkeeper with suitable abilities at affordable costs.
- The company is growing and is looking for opportunities to scale its bookkeeping and accounting services anytime.
Change happens whether we’re ready to face it or not. By following the latest trends in the accounting space, you can be prepared for these or any transformations that may be coming in 2021 or beyond.
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