The accounting industry is in the midst of changes as it struggles to cope with the fallout of the global financial crisis. The crisis made a major impact on several businesses all over the world, causing them to reexamine their business processes and strategies. It has also made them look at their own accounting departments and take steps to update and modernize them. The recent trends in accounting are shaping the industry and affecting the businesses that use them as well.
1. Cloud Accounting is on the Rise
Cloud technologies have evolved rapidly in recent years, making them an essential part of several industries and the accounting industry has caught up. The 21st century accounting industry demands the use of cloud software. These applications run on servers and, thereby, allow authorized organizations to access their accounting data online, wherever and whenever required.
The usage of such software is one of the major trends in accounting, with several businesses of all sizes adopting it into their bookkeeping operations. Statistics show that the overwhelming majority of SMBs will have adopted cloud accounting before 2017 ends. This is to be expected considering the number of advantages to this technology. Apart from convenience, the inexpensiveness of such software and the user-friendly interface are often cited as reasons for its surging popularity.
2. Rise of Data Analytics
Data analytics enables the discovery of valuable insights from the existing data of an organization. Details such as balance sheets, capital statements and P&L reports have always been essential in accounting. However, it has become increasingly necessary for organizations to have more in-depth data about their finances. Supplementing accounting with data analytics fulfills this need, becoming one of the latest accounting industry trends.
Analysis of the finances can help organizations gain a competitive advantage. Data analytics can be used in accounting for the identification of underlying risks and trends as well as inconsistencies and deviations. The information generated is easily actionable, leading to better business decisions.
3. Increasing Automation
Automation is another of the trends in the accounting industry. Like all other industries, accounting can benefit from the implementation of automation. A considerable amount of time can be saved by automating a lot of manual and small tasks such as data entry. This is advantageous for the organization and the accountant by freeing up hours that can be used more productively for other tasks.
Automation of certain accounting tasks allows the time saved to be dedicated to resolving the accounting issues, which can be quite serious and challenging at times.
4. Growth of Collaborative Accounting
One of the interesting upcoming trends in the accounting industry is that of collaborative software. Accountants are increasing their collaboration with clients in their work. While this is not a new concept, the latest iteration of collaborative accounting makes use of the latest technologies and the internet. The usage of these technologies leads to real-time communication between the parties irrespective of their locations. Clients can issue their requests via instant messengers while the accountant readies the reports over the cloud in real-time.
5. Implementation of Social Media Strategies
Social media adoption is widespread among a diverse array of business and industries. It is leveraged for establishing an online presence of their business and to reach out to a bigger audience. It has also become one of the new trends in accounting. Accountants and accountancy firms are increasingly becoming active participants in social media. Their main aim is to enhance their visibility and clientele.
Be that as it may, social media usage by these firms is advantageous for their clients as well. Their clients gain the ability to gather information about the various firms. This enhances the clarity about the services of the accounting firm.
6. Increased Outsourcing
Of all the current trends in accounting, the biggest has been the increase of outsourcing. Organizations are increasingly outsourcing their accounting departments, sometimes in their entirety, to other companies. This gives them the ability to focus their efforts and time on their primary business processes. Organizations get rid of a major chunk of their expenses while reducing their risks for fraud at the same time. They also gain access to trained and experienced professionals and their latest systems.
Understanding the new accounting trends is a good way to stay ahead of the curve. For any business in the 21st century, this is vital to remain viable in a competitive field.
If you are looking for an outsourced accounting company, contact NuVest Management Services to see how we can help you.