You cannot stop the future or pause it. In today’s world of emerging technologies, professionals in all industries face many changes.
Finance and accounting are not exempt from these challenges. Some industry experts believe that the digital world may not impact accounting. But the following eight emerging trends in accounting are devised to reduce cost, time-consuming manual labour, and human errors.
- The move to cloud-based accounting and finance software. The advantage of having cloud-based accounting software is that the staff members can access real-time financial information, approve transactions, and collaborate from anywhere in the world.
- Predictive accounting-drive based budgeting. Traditional budgeting ways are inefficient and costly. They are quite time consuming, and by the time they produce any results, the market scenario has changed.
- Upskilling and reskilling as a way to stay ahead. The transition from manual to automated work practice in the accounting field requires regular upskilling and reskilling by accounting professionals. For example, artificial intelligence helps in reducing financial risks as it can access and predict loan risks.
- Advisors are moving up the value chain. When backed by advanced technology, accountants can become an asset to the company by providing additional value as a subject matter expert. Accountants would play a more creative and strategic role in their company as advisors.
- Outsourced accounting is growing rapidly. The regulatory requirements increase as the company business becomes global. Outsourced accounting helps in being current on statutory compliances and allows a business owner to receive accounting support from an expert, eliminating in-house labour and resources.
- Client relationships are taking centre stage. The relationship between an accountant and a client is based on loyalty and trust as they deal with their personal and financial information. Before the internet, the client and the accountant carried most business personally, but technology overtook this tradition.
- Value-based pricing is becoming the norm. In tandem with rapid technological evolutions, the accounting industry is witnessing a shift. The manual work is being automated by software. As a result, businesses have been moving from hourly prices to fixed value-based pricing.
- The millennial generation is on the horizon. Till now, the financial sector has been dominated by the older generation, who have been a bit reluctant to embrace new technologies. The millennial generation is now entering the job market. These guys have technology at their fingertips.
It reduces the cost of investing and managing on-premise software and hardware. Traditional budgeting ways are inefficient and costly. They take a long time to complete, and the market scenario has changed by then.
The financial data is linked to real activities and resources in driver-based budgeting. It shortens the time taken to create a budget or forecast.
In driver based budgeting, the financial data is linked to real activities and resources. It shortens the time taken to create a budget or forecast.
Many companies widely use data protection using blockchain technology to secure digital transactions. Accounting professionals must update their knowledge and skills to compete and succeed in this ever-changing market.
With the onset of the online accounting software, clients can have multi-user collaboration with the accountant at any time, from any location. It saves time and fastens the speed of operation.
As the price is fixed first, the client knows the cost upfront, and the company knows what they will get in return. Although this is a common practice, it has been recently introduced in accounting.
The clients today are the most educated generation in history. When it comes to accounting, they demand fast action and a thorough understanding of technology-based financial solutions. The millennial generation happens to be a boon for the accounting industry.
Technology and automation cannot replace human accountants. However, future accountants will have to develop their competency as the skill set required and job description demands will be more complex due to the changing business environment.
Upgradation in technology is a never-ending process. Organisations that invest in timely training and understand the importance of emerging technologies will remain above the curve.