Change is the only constant and it goes without saying that modern businesses have embraced innovative technology solutions wholeheartedly. In fact, in today’s global world, most of the entities are capitalizing on the opportunities by shifting their work operations online or onto the cloud, a remote network of virtual servers that saves manages and processes data to enhance productivity and operational efficiency.
As technology continues to evolve at a rapid pace, accountants need to get on board with the prospect of automated accounting. Let’s shed light on the 7 biggest accounting trends that will impact the industry in the coming year.
Undoubtedly, digitalization has already revolutionized the whole accounting industry by creating a virtual version of everything possible. The emergence of cloud accounting, SaaS applications and the ability to access your financial data from any location are some of the potent results of virtualization as a new norm. In the recent blog of Accounting Today, it is revealed that the global market for accounting software will reach $11.8B by 2026. The major reasons behind the revenue growth expectation are the cloud shift and friendly integration of accounting software and mobile devices.
Smart technologies like Artificial Intelligence (AI) and machine learning have been actively providing near-real-time information to businesses. They’re not actually on a mission to extinct human intelligence instead of helping accountants to become better strategic advisors by providing crucial business insights. The expert believes that some of the complex accounting tasks including tax preparation, report forecasting, payroll, and audits will be fully automated by the year 2020. The transformation has been fruitful so far as accountants can handle tons of data without spending much time.
The trend towards gigging has begun – A survey done by Intuit predicts that 40% of American accountants will be independent contractors by the year 2020. Another survey conducted by Adobe states that we all have multiple jobs in the future. About 70% of U.S. office workers love their accountancy job and are likely to have a second job to compliment first. The free market system seems to be a big hit among accounting professionals, who are ready to put in more hours doing the work they love.
Blockchain, a well-known single-ledger technology, allow businesses to access the same information in real-time from different sources. Majority of businesses are utilizing this delivery method to secure their sensitive accounting data and speed-up complex processes. Referring blockchain as a technology for cryptocurrency is not at all valid. Along with uninterrupted security and transparency, blockchain is capable enough to replace traditional ways of handling auditing, compliance and reconciliation tasks.
The global tax landscape has matured according to digital trends over the past few years and will continue to evolve for the best. There are plenty of countries who are yet to transition to a digital tax system. Fortunately, the United States is all set to accept new tax laws, and the IRS has already announced the annual inflation adjustments for the year 2019. The shift will prove to be a major throwback for accountants who are not expecting any significant changes this year. The impact of these tax changes can trigger accountants. So, they need to be well-prepared to survive in this steadily evolving environment.
The innovative modern world is making automated accounting possible for accountants by leveraging virtual technology including chatbots, hosted QuickBooks Software and other self-employed applications. Those who find accounting as a tedious and time-consuming task should thanks to technology for providing do-it-yourself solutions. Intuit, the renowned accounting, and tax software company, has also launched QuickBooks Assistance in the year 2017 to empower the client interface in small and medium enterprises.
The future is all about the young generation as business owners and thus, accountants need to move beyond traditional systems and, approaches. The rise of millennial clients simply means that accountants have to deal with a purely new roster of clients who prefer more transparency, proactiveness and a personalized approach. The millennial clients not only want proper guidance with finances but also expect their accountants to be paperless, which is only possible with the cloud switch.
People who are associated with the accounting industry understands well that change is inevitable and necessary. To claim growth in the competitive market, it is necessary to acquire the trends and transformations.