With so many technological advancements taking place in leaps and bounds, hardly a day has come to light when the accounting industry paused for a minute. A considerable shift in consumer trends is creating new avenues and demanding new approaches to serve the clients better.
If you see the comparative picture of certain service providers, disruption and vulnerability take the front stage. A classic example to explain this can be the reference for basic transactional accounting services. These are largely automated functions that are achieved via manual conversion of businesses and systems.
Here, we will be discussing the seven latest accounting industry trends 2020 has to offer.
1. Cloud-based Accounting
According to the latest researches, 67% of the accountants believe cloud-based accounting to be the reason for their firm’s development. No wonder cloud is becoming a necessity for the accounting services. With every passing day, more corporations are relying on cloud accounting for easy accounting solutions. From tracking inventory to sales and expenses, cloud accounting ensures more productivity for businesses, making it one of the best finance and accounting trends 2020.
2. Automation in the accounting processes
Automated accounting is the latest trend and most of the accountants believe it to be the key factor to boost up their accounting needs. As most businesses depend majorly on the utility of computers, the chances of compromised security and falling to fraudulent traps increases.
Automation has vast benefits; it reduces errors and leaves no room for confusion along with degrading your work queries. With automation, businesses can also expand their O2C tasks and process sales orders.
3. Data Analytics
As accounting tasks are moving towards automation and cloud accounting, the attention also shifting to data analytics, a major trend in the accounting industry. Data analytics helps to understand the customer’s requirements, which in turn helps in building better customer relationships.
The current upgrade on analytics has made it more powerful, making it of top priority to be used for auditing, risk management, consulting and tax management. With better insight into the business performances, the accountants can come up with better insights thereby improving their accounting performances.
4. Adoption of Blockchain
Blockchain is a new term and a trending topic whose contribution is from tech to the accounting field. In simple terms, blockchain is a technology that functions as a chain of blocks for distributed ledgers and is used to manage and transfer finances in a facilitated way.
It is adopted in the accounting industry as the chances of security and accuracy of the systems increase. For this reason, entered data becomes an auditable record and gets stored on platforms used by thousands of servers across the globe.
5. Big data into accounting
The adoption of big data into different business aspects including content strategy, cloud accounting to business decisions makes it worth being used in accounting. With the use of big data, the accountants calculate crucial data sets and form a highly secured with appropriate data analysis. Most enterprises and IT experts are hiring accountants with extensive knowledge of data analysis and data science, which exactly shows how big data is expanding its roots in this industry.
6. Indulgence of AI and automation
Automaton is responsible for the development of the accounting industry. It is ab essential tool that analyses data of huge volume that works at high speed. Its functionality enhances productivity and at a reduced cost, generates accurate data.
AI is adaptable with various accounting processes, it optimizes administrative tasks, including bank transactions, invoices, and payment reminders. Artificial Intelligence has already proved itself worthy and in the coming three years, it is estimated to see acceptance and rise of nearly 55%.
7. Usage of accounting software
With accounting operations widely becoming tech-driven and cloud-based, the accountants are ready to ease their workload by two-fold. The selection of perfect business accounting software does not harm when adopted with the ideology of minimizing workload. Different accounting software conveys different functionalities such as multi-tasking, customization as well as optimization.
According to ‘Learning hub’, in 2019, 64.4% small businesses use accounting software and the numerical is expected to grow in the coming decade. This is mainly due to larger firms and mid-sized businesses shifting towards the usage of accounting software. Again, a forecast was made for the zone of North America, which expects an 8.5% CAGR between 2019 and 2024.
The accounting firms have gradually started believing in remote working and with more technological innovations. With the accounting trends, it is becoming easier to perform accounting tasks without any time lag.
The current accounting trend speaks for digitalization. The way digitalization is embracing different fields, soon this area is going to offer the highest percentage of accurate analytics. But at the very same time, the accountants rely on software and taking them to cloud-like QuickBooks Premier Hosting or QuickBooks Pro hosting for leveling up their accounting tasks.