Top 5 Accounting Trends
There have been some exciting developments in the accounting industry in recent times. Most notably, advances in technology are reforming accountants’ roles. Far from making accountants redundant, it is creating opportunities for accountants to add high-value insights, focusing on more strategic and advisory roles to aid in decision-making and improve the bottom line for business. We outline the top 5 account trends in 2021.
1. Cloud-based technology and remote working
Working remotely has been especially crucial during the global pandemic, where we witnessed the increasing reliance on accountants and bookkeepers working from home to keep businesses operational and profitable. Remote working and collaboration were made possible with cloud-based accounting tools, which allowed accountants to remain productive and perform crucial accounting processes with on-demand access to financial data from anywhere.
Artificial Intelligence (AI) technology and Robotic Process Automation (RPA) tools enable accountants to quickly and accurately process large amounts of data. Specifically, these technologies allow automation of repetitive accounting tasks such as bank reconciliations, workflow approvals, expenses, payroll, accounts payable, accounts receivables, tax, and many other accounting processes. Automation can reduce errors and processing time, optimise workflows, and ensure accounting data is accurate. These tools can code and validate data within the accounting system and produce valuable financial and forecasting models. This significantly reduces the time dedicated to routine tasks so the accountant can focus on higher-value activities.
Blockchain is an emerging technology with the potential to revolutionise the accounting industry. Blockchain is a distributed ledger system that records a transaction simultaneously in multiple locations, and the data is autonomous and immutable. Blockchain in accounting utilises triple entry bookkeeping to record transactions. A transaction is recorded in a business’s double-entry accounting system. A third entry is recorded in the blockchain, a digital ledger that is cryptographically protected and accessible to all stakeholders.
Accountants can potentially benefit from smart contracts, a program stored on the blockchain and enacted automatically when specific conditions of the agreement are met. This could be used to automate some processes such as payroll and payment when goods are delivered.
Blockchain improves the integrity and transparency of financial information and provides safeguards to investors and other stakeholders. It is expected to have benefits such as reducing expensive and time-consuming financial controls and automating some auditing processes, enabling auditors to focus their attention on more complex tasks. As the technology evolves with time, we expect to see blockchain being increasingly integrated into the accounting industry.
4. Big Data
Technology transforms the data available to accountants, with data collected from many more sources such as the internet, social media, and vast amounts of internal data resulting from using digital technology in sales, communications, marketing, and the supply chain. The immense amounts of data collected, referred to as big data, is a very high volume of structured or unstructured data from various sources and is coming in at a high rate. Due to the complexity and speed of the data, traditional data tools cannot process it. With the right data analytics tools, accountants can use the data to gain valuable insights to enhance decision-making, improve business efficiency and risk management, and increase profitability
The pandemic and cloud-based technologies have proven that businesses can efficiently operate accounting processes remotely. Many businesses have reduced the burden of managing their bookkeeping and accounting functions in-house by outsourcing to qualified professionals. This can provide them with many benefits such as on-demand access to trained professionals, cost savings, and enables the business to focus on their core activities and growth.
How Accario Helps with Accounting and Finance Needs
You may not have the volume of transactions to hire an accountant full-time. We provide scalable accounting resources to suit you as you grow. You could start with a part-time accountant (or even pay for hours) and over-time push up to a full-time equivalent. The good news is that we will take your business in a more profitable direction.
There will come a time when you really should outsource or delegate all your accounting. If that time is now, let’s chat about getting you your own back-office. As an ISO9001 certified outsourcer, we will assign you a qualified accountant who operates skillfully at the highest level and who is managed by a local accountant.
We offer low prices with fixed monthly costs which means no hidden fees and no nasty surprises! From Bookkeeping to Tax to SMSF Admin and Audit, we offer the full suite of Accounting and Finance services to free up your time and give you peace of mind. Let’s get connected!