In the past 50 years, though, the only change we have seen with standard accounting trends at a large scale is moving from paper-based books to soft books using technology. Due to the ever-changing business environment, a robust technology-driven accounting system is the prerequisite for any accounting firm. However, the change to a cloud-based accounting system is still happening very slowly.
I believe this industry has been slow to transform and imbibe change due to its very nature: money. This industry is like the gatekeepers of the lifeline of any business and, hence, very risk-averse. I also believe that we will see some rapid change in the industry because of phenomenal technological changes and the need to provide better customer service. Following are some of the key trends in the industry.
Future-Proofing with These Seamless Accounting Trends
Customers who come to accountants today don’t want to get their books done but also get valuable advice from their accountants on various financial needs ranging from tax, financing, mortgage, investments, pension, etc.
Sole traders, self-employed contractors, and small businesses want their accountants to deliver these services at the lowest possible cost. We will see the emergence of accountant advisors who will not only do books but also help their customers with their other tertiary needs, one of the key accounting trends.
Powerful Cloud Accounting
With the advent of massive cloud infrastructure and accountants needing to access their data anytime, anywhere, accounting firms will slowly move towards accounting systems on the cloud. This will not only help them provide better service but also help them reduce their operating cost.
The benefits of cloud accounting include:
- Cloud software can be combined with numerous add-ons
- Enables small businesses to stay connected with their data and accountants all the time
- Enables access to cloud-based software using the internet from any device
- Removes the inevitability of working on a desktop
- It is secure, and the data is protected
Automating accounting services to a virtual accountant has saved accounting firms much time. Automation is gradually eradicating the demand for manual data entry, which saves accounting firms cost and time. Accounting automation is intended to decrease the load of manual accounting and bookkeeping.
Few people think that automation in accounting might seem like a menace for accountants. However, this is not true – automation is unlikely to replace accountants, but it makes it tremendously advantageous for small-business owners and entrepreneurs.
Many people think that if we can automate, why outsource accounting services? The fact is that numerous studies state that, in most likelihood, automation will not remove jobs but change them by making them more productive. The truth is we would still need people to check for quality, complete the books, and analyse the data.
Outsourcing back-ended jobs will continue to help accountants focus on customer service and growth. Outsourcing is likely expected to increase as competition bites the industry due to automation. Small practices that cannot invest in automation must outsource even more heavily to remain competitive and relevant.
Outsourcing will continue to top the Accounting trends chart:
- Lower costs
- Ability to scale
- Access to expertise, technology, and methodology
- Less reliance on capital expenditure
- Time for accountants to focus on growth
In the recent past, collaborative accounting has evolved, and now, accountants and clients can use collaborative accounting to work collectively in real-time, irrespective of their location.
Embracing Change for Future-Ready Accounting Trends
With technology-driven collaborative accounting, accountants can view and change their client’s information anywhere using cloud-based accounting software and interconnect with clients using collaborative tools such as HipChat and Slack. All that is needed to perform the task is the incorporation of technology, portals, and tools to carry out the flow of information between the collaborators.