At the beginning of the year, the accounting industry was in the midst of an ongoing boom, meaning consistent industry growth. But the current economic situation has turned the tables and compelled businesses to ponder over adopting digitalization and technologies so that they can work with ease and on the go. The emergence of new accounting technology, along with some obstacles, would offer businesses with many new opportunities.
The early bird catches the worm! In the same way, staying up to date with the new technical developments in the accounting field would help the businesses to remain up-to-date with rivals and succeed in the future for a long time.
Here are top 5 accounting trends to be aware of in 2020.
Accounting Trend#1: The rise of Automation & Artificial intelligence
Accounting automation is a trend that can save companies a great deal of time when it comes to accounting tasks. It slowly eliminates the need for manual data entry and saves a huge amount of production hours for businesses. The purpose of accounting automation is to reduce the burden of manual bookkeeping and accounting and to use that time to address actual real-time accounting issues.
Though automation and accounting software may seem like a threat to accountants, in the near future they won't replace accountants. Automating accounting is extremely beneficial for small business owners and entrepreneurs.
Accounting Trend#2: Blockchain - Introducing authentic source of trust
The trends that have revolutionized accounting are not only automation and artificial intelligence, but the blockchain is also another tech trend that seeks to revolutionize the way we understand the transfer of funds and globalization taking place. The blockchain is a distributed ledger that is made in such a way that if a fraudulent transaction is attempted or someone tries to "spend" the same amount twice, it will get rejected. It’s a form of “trustless trust”, and does not need big institutions like banks to work.
Accounting Trend#3: Cloud - Access your business on the go
Although accounting software has existed for years, switching to the cloud is a fairly new trend that has evolved after a decade. The transformation is not underway and a number of companies have already taken the leap of faith.
Cloud helps organizations to access their business data anywhere anytime. Now you don't need to be at your workstation for analyzing your accounting data, you can do it at home or even on business trips too. The data on the cloud is secure and provides you a real-time view of how your business is performing.
Accounting Trend#4: The adoption of Data Analytics and Science
It's important that you get the right information when making any financial decisions. The latest accounting trends suggest that accounting professionals need to be aware of the pricing structure of the company, proceed with the correct data while applying the required mathematics.
With the correct use of data science, businesses can make a simple identification of the details. It will also help businesses by navigating through any challenges in the business’s external environment.
Accounting Trend#5: E-commerce - A new concept of the growing market
One more recent addition to the list of emerging accounting trends is e-commerce. The Internet has succeeded in bringing e-commerce to another level by also making it an option for online shopping.
The information & technology that comes with e-commerce can benefit accountants by offering accurate statistics and help them to access the true cost of goods. This would also encourage them to balance promotional expenditures with the true cost of goods.
How these accounting trends are changing the future of accounting
Cloud and AI have effective means of automating and streamlining manual and transactional activities. However, the tasks that would be difficult to automate will be those provided by the decision-making and planning of professional financial experts. Consequently, accountants will make their jobs future-proof by embracing technology and building on their position as the most respected and admired company for their clients.
For any sector worldwide, the technological revolution has been at the forefront and its consequences have been felt even in the smallest of companies. So, just welcome and embrace the transition. Within the accounting environment, the only constant is the transition and stability of its fluctuations.
So is your business ready to adopt these new changes?
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