We’ve noticed several industries undergoing major transformations over the last decade. The advent and adoption of technology have revolutionized how trades go about their operations. The accounting industry, too, has been subject to many changes.
Accountants who were required to be adept at data-entry formerly no longer need to spend their days typing invoices. Today, they do more than balancing your company account; they act as business advisors who help strategize your way out of business downturns.
As the new decade introduces new trends and ways of conducting business in the accounting space, accountants and bookkeepers need to be aware of these, to allow them to stay up to date with regulatory and policy changes. Our friends at BrooksCity, one of the leading chartered accountancy firms in London, UK, share seven of these trends below –
1. Cloud Accounting
Engaging with cloud technology has done away with the need for installing voluminous software on your system. Cloud accounting, similarly, will allow accountants to maintain their accounts on accounting software hosted over remote servers. As an accountant, you will no longer have to install and maintain accounting software on every computer that you use. Cloud accounting provides your accounting data with an extra layer of protection from loss or being compromised. Additionally, cloud accounting will also open up more remote job possibilities for accountants and bookkeepers.
2. Artificial Intelligence
Artificial Intelligence allows for automation of complex processes that would otherwise take exhaustive time to be completed manually. Accounting software is already integrating AI to help automate labor-intensive accounting chores such as tax preparation, payrolls, audits, and the like.
3. Mobile Computing
Mobile computing allows for tasks to be completed without delay, on-the-go. Accounting software is introducing mobile-optimized versions to help you do just this. With mobile computing, you can update your company books anytime and from anywhere.
4. Small Specialist Firms
Technology has leveled the playing field for accounting firms. Now, the smaller firms have access to the same tools that the larger and more established accounting firms do. So, how does one stand out from the crowd? By providing specialized services.
Small businesses are more keen on doing business with disruptive accounting firms that offer personalized service. These firms make themselves aware of a business’s origin, preferred mode, and pace of functioning, as well as their vision. They then set about aligning their accounting services to match their client company’s business personality.
5. Social Media Integration
Accounting firms in 2020 will vociferously try to establish a social media identity if they haven’t already. Customers no longer prefer to engage with businesses that do not have a social media presence. Such companies lack verifiability, which affects their profit-making. An accounting firm can help establish a verifiable identity by getting online, as also reach out to more clients who’d like accounting services.
6. Focus on Wellness
While employee wellness is a comparatively new concept, observed more in millennial companies – there is no reason your accounting firm should not recognize the need for wellbeing in its staff. Stress at the workplace can significantly impact your cost-to-business as more and more employees fail to show up for work.
It is essential to recognize and value the mental health of your employees – take precautions to avoid employee stress burnouts at work. You could offer shorter work shifts from time to time or encourage employees to take work-from-home. Research has found both to be extremely effective in helping employees deal with work stresses. After all, a happy employee is a productive employee.
Implementation of blockchain technology will help accountants transfer funds and finances without having to deal with a third party, such as banks/other financial entities. You can do so directly, with improved security.
Cryptocurrencies have been developed using blockchain technology and claim to be safer than flat currency. It’s because any transaction that occurs over blockchain is encrypted with a unique code that cannot be altered. The record of your sale continues to exist, making it among the safest ledgers available.
While blockchain integration is a lengthy procedure and cannot be expected to complete in 2020 itself, this year will register some significant moves towards accomplishing that end.
2020 is not just a new year; it is the new year of a new decade. A decade is a long time and pervious to many changes, big and small. While some of these manage to stay along and solidify into the status quo, others disintegrate and fade away.
Above, we’ve discussed 7 of the more pressing trends that the accounting industry can expect to come face to face with, in 2020. These are, by no means, the only trends that the industry will find itself encountering this year.
There will be several others vying for their place. However, according to our prediction, the handful of these trends shared will impact accountants and bookkeepers the most. These are the seven trends that they will repeatedly find themselves contending with in 2020.