Table of Contents:
- Drive towards Industry Change
- Predicted Top 10 Accounting Trends in 2023
With the arrival of trends in accounting in 2022 to 2023, the world has witnessed many changes. Although these variations were not as exceptional as what was expected by most of us, the alteration in the technological world has started a new futuristic world. We are currently seeing an upsurge in technological advancements and automated functions.
If we look at the accounting future, technology might still be a few inches away from the accounting world for now but has started to function/adapt as regards to these new advancements. We are rapidly moving toward the trends in the accounting industry with advanced technical fixes like cloud-based subscriptions, on-premise solutions, Software-as-a-Service (SaaS), and more.
Drive Towards Industry Change
Based on the answers of 3000 accountants in a 2019 worldwide survey, a staggering percentage of accountants (around 90%) believe that accounting in the future will enter a cultural shift by the next decade.
Moreover, the effect of such a shift has started to come in light in the form of:
- Emerging technologies
- Business services
- Hiring practices
- Work from home practices
Another highlight revealed from the above survey is that more than 82% of accountants will start recruiting new employees from non-traditional backgrounds.
Even with a number as high as 62%, the current respondents believe that the accounting training programs of today won’t be enough to catch up to the accounting trends of 2030. If the above facts are intriguing, we have more for you. So, let us look at a few fascinating accounting trends that are forecasted to shape better ventures.
Predicted Top 10 Accounting Trends for Businesses in 2023
1. Cloud-Based Accounting
Accounting services and the cloud have become inseparable and profitable for most businesses. With the accounting systems hosted on the cloud, multiple companies have gained the ease of accessing their digitally hosted system anytime and from any place.
The data access is not just limited to the ‘Read Only’ versions but also gives you the benefit of sharing, editing, copying, and working on the files collaboratively. With this, you can also track:
To explain more, we studied a report published by Sage “The Practice of Now,” where 67% of accountants approved the introduction of cloud-based solutions that have streamlined and enhanced their work quality.
In another report by “Accounting Today”, 58% of organizations recognized and accepted the benefits of shifting to the cloud and are using cloud-based accounting systems.
You can already see the supported answer in the form of the above graph depicting the accounting trends effect.
2. Offshore Staffing in Addition to Remote Work Setup
Before the pandemic of Covid-19 hit the world, Forbes revealed in their studies that more than 34% of American citizens worked remotely. Yet, statistics by GetApp showed that the remote worker figure increased drastically to 40% weekly. Once these figures were estimated, in and after the pandemic, it stood at nearly 4.7 million.
Additionally, 2% unemployment rate for accountants in the second quarter further increased to 3.5%, as highlighted by Reports from the US Bureau of Labor Statistics (BLS).
2.1 Unemployment Statistic
Even though the requirement is high, the unemployment rates are even higher:
i. Auditing clerks – 1.5%
ii. Accounting clerks – 1.5%
iii. Accountants – 1.4%
iv. Bookkeeping clerks – 1.5%
v. Financial analysts – 3.2%
vi. Auditors – 1.4%
vii. Financial managers – 1.5%
viii. Posting and billing clerks – 2.0%
Due to this, top enterprises are missing out on talented accountants. Finance professionals have started adapting more advanced technologies to overcome the shortfalls mentioned above and maximize their firm’s profit.
And the classic example that comes to the surface is a remote work setting. Most of us will agree that embracing remote working with digitized accounting trends and techniques has cut most of the expenditure. Plus, it has also optimized the entire progression.
Moreover, additional offshore staff directly deployed in remote working settings is hiking up the growth trajectory. Implementing this by many accounting firms is aiding them in reaping more benefits than the traditional working structure. So, based on analysis and forecast, this setup trend will expand and flourish in the years to come.
3. Accounting Software
The accounting trends 2023 are going through fierce competition. With most of the software migrated to the cloud platform, the demand for hosted solutions has hit the roof.
More and more businesses are opting for cloud-based accounting software solutions for their business requisition due to:
- Friendlier functions
- Advanced features
- Robust solutions
Accountancy Age put forward their perceptions that from 2019 to 2024- accounting trends in the form of solutions would take over the finance industry. The forecasted CAGR growth rate will also jump around 8.5%. The amount, when projected numerically, stands to be approximately $ 19.59 billion.
Below is a list of some software that will become trending accounting software in the future:
- Sage Business
4. Big Data
Big data has always been preferable for financial experts and accountants whenever it comes to resorting to crucial financial task completion.
This technological form is imperative in transforming vital internal data sets into dynamic, secure data analysis. Also, it has been a constant aid in converting those evaluations into actionable insights. With the gradual but constant advancement in this finance industry, the probability of big data becoming more proactive is pushing future accounting trends.
Read this also: Unlocking the Power of Big Data
5. Data Analytics
Compared to the opportunities and promises made by Big Data for financial experts and accountants, the forecasts are even regarding data analytics.
On inculcating data analytics to your accounting firm, you can avail advantages in the form of:
- Identifying operational inefficiencies
- Developing accurate forecasting models
- Collecting valuable financial insights
- Tracking clients progress
For segregating various service values from contenders and making judgments based on accurate decision-making, most industries will be embracing data analytics by 2023. So, the demand for data specialists will increase in the coming years.
The reason for this statement depends on two factors:
- Interpreting complex datasets
- Capturing valuable insights
Also, conventions and guidelines for responsible data gain will see a radical upgrade by 2023.
6. Automated Accounting Process
Automation has drastically changed most industries, and accounting is no exception. The entire management process has become automated with comprehensive solutions. It has helped reduce errors and eliminate confusion.
Since the process relies on computers and servers, businesses tend to fall into money scams and compromised security attacks. This in turn, raises the demand for in-house auditors to check the financial inputs and data accuracy. This way, there is no need for the in-house personnel to worry about getting replaced by bots.
7. Outsourcing the Accounting Functions
Outsourcing is the new way of making advancements in the accounting business. It helps the firms to focus more on their core work rather than worrying over petty issues. Thus, when tedious work gets outsource by professionals or firms, they enjoy more concentration on values such as profitability and resources.
Outsourcing services have now become the fastest-growing sector in the accounting world because of this. Firms opt more for outsourcing accounting services since they enjoy more proficient and reliable professional services.
Further, it is an effective method for the CPAs to provide excellent services to clients and to add more value to their credibility.
Blockchain has drastically improved the conditions of accounting sectors. It has reduced the reconciling and ledger maintenance expense. Also, professionals have a clear and transparent view of their firm’s obligations and available resources via blockchain technology.
No wonder a significant number of wallets are created to transact in the blockchain. According to Statista 2020 data, firms in the US spend nearly $1.1 billion on blockchain technologies. That is why it’s one of the most popular accounting industry trends.
You may also like: Blockchain Technology Aiming To Improve Cloud Security And Capacity
9. Value-Based Pricing
Every accounting firm should know the impact of high prices on their business, which can make them go out of business. On the other hand, value-based pricing has a strategic approach that increases revenues by adjusting the price to the anticipated amount instead of its historical amount.
A value-based pricing model is the best to provide you and your clients with price certainty. Other than the monetary advantage, it helps accountants efficiently use their time to make them bring more productivity to the table.
10. Advisory Services
Business owners should keep themselves updated on trends and the latest technologies, They should use Advisory Services, that can give advice like how to use new technologies to optimize the accounting business or leverage most of the existing accounting software.
The insights provided by Advisory Services are mostly accurate. Adopting this will not eliminate human efforts and will increase revenues by a good percentage.
Well, these are a few accounting trends that we are definitely hoping to see in the coming years. The start of the accounting industry seems to shine brighter in the professional world. The best aspect of these trends is that they are moving slowly but steadily and are definitely bringing a revolution in the field of business.