Technology has been changing from time to time from being slightly developed to having innovative features one has never seen before. It transforms imagination and converts our ideas into reality.
Different industries recognise the developments technology has brought in. The accounting industry is one of those that have been significantly improved with the latest changes, as it understands the need for modern integration within their organisation.
This advancement has also given an initiative to a few accounting trends practiced by top CPA firms around the world and here are six of the accounting trends for the year 2021:
1. Cloud Accounting Solution
Cloud computing has gradually become one of the most followed technological trends for 2021. Since it was invented, it has become popular in the last few years in all various industries, as it has changed the dynamics of many sectors throughout the world. Its wide range of functionalities is really beneficial for many businesses.
Accountants worldwide have adapted this trend as this can easily host accounting software such as QuickBooks, which can be then made available anywhere, anytime. It provides good security features that is somehow much better than established measures and also support multi-user access at a very affordable price.
2. Task Management Via Automation
Like a vending machine which changed the traditional retail outlets to an automated and improved customer shopping experience, automating repetitive tasks enable many businesses to reduce human error, increase productivity and lower the cost of operation.
The same applies to accounting firms as automation allows them to experience a new level of efficiency and enhance the firm’s output.
Automation allows the firm to drastically cut down resources such as time and money to finish recurring tasks and results to better leverage on the company’s resources. With lesser time invested on administrative tasks, this will also allow employees to focus more on main accounting jobs and would also trigger an increase in the generation of revenue.
3. Embracing Data Analytics
Data analytics is one way of predicting consumer behavior, monitor purchases, make better decisions and increase organisational efficiency. With this, it enables the accountants to provide what the clients want and increase its business outreach.
Instead of just showing numbers and printing out financial statements, clients prefer to have a proactive solution on the financial management and they want their accountants to develop strategies that will help with the growth of the organisation.
4. Working Remotely
The pandemic has forced a lot of organisations to either close their businesses or remotely work to keep the operation going. A considerable number of employers embraced the new normal of working from home for their staff and it’s working well. For some, they find it more productive and beneficial.
Having access to technological advancements which facilitate the employees to work remotely has been a trend in the accounting sector. With this, hiring more employees would not require additional workplace costs.
It can also promote wider customer outreach as the clients can communicate using various video conferencing software. Since most of the employees are readily available to work remotely, companies can avail remote services from the experts and bring expertise to their accounting operations.
5. Outsourcing Operations
Having an accounting firm doesn’t only mean working on the client’s data. You also have to check the performance in the workplace, hire new employees, invoice the clients and manage customer service.
Although there are software solutions that can help you with these tasks, you will still have to significantly invest in the purchase of the software and recruiting the needed personnel.
Outsourcing these business tasks to other companies will allow you to experience quality service at an affordable price.
Instead of recruiting new employees yourself, you can avail a hiring agency – just provide the qualifications on the needed employee and they will do the selection among candidates.
This is the same with outsourcing your firm’s data to a third-party for managing invoices, collecting receivables and doing the payrolls. Outsourcing those business operations is a good way for companies that want to only undertake main accounting activities.
6. Artificial Intelligence
Having AI introduced in the accounting sectors, has brought In changes to the infrastructure which has enabled them to enhance overall productivity, improve efficiency, and ease the business operations. Different processes like handling and management of data can be completely automated which boosts accuracy and lessens human errors.
A few of the benefits of using AI are noticing compliance issues in the financial data, implementing corporate policy, reorganise financial information and protecting the company from any fraudulent activity.
Technology has been with us for a long time and utilising it wouldn’t hurt but help on our business operations. All of these trends that are widely followed in 2021 will allow the company to improve the accounting operations and have the best out of your available resources.
So if you are planning to start a new business in 2021 or already have a business, make sure you don’t fall back behind these trends.