Technology has many stories to tell. It connotes development and, in much of today’s business picture, it continues to reshape industries and businesses. It transforms systems and processes, converting manual tasks into automated functions. With the use of technology, businesses operate more efficiently and effectively. And this is where the latest accounting trends mainly revolve around.
Accounting professionals are tasked to bring a sense of predictability to businesses, clients, and the business world. Budgeted amounts to match the actuals, forecasts to hit the target, rules to be easily applied, and financial statements to not lead to audit issues or restatements. Other than ensuring the quality and integrity of financial reporting, accountants help the management to drive the business to be on a profitable direction.
Having said that, the year 2020 is shaping up to be a year influenced by various technological advancement factors that are largely out of accountants’ control and as such, professionals have to embrace all emerging accounting trends to maintain a position in the talent market.
1. Automated Accounting Processes
Streamlined Automation Solutions improves the speed, accuracy and reliability of the process. Hence, it eliminates manual data entry, minimizes errors and data inaccuracies. It also enables business to transform a raw document to an accounting document and quickly analyze data in different dimensions.
2. Focus on Data Analytics
The accounting industry shifts its focus to data analytics and accountants are now taking a step further to roles as business advisors which entails professional skepticism, judgement and critical thinking skills. Accountants’ analysis of the company’s financial performance provides the business with valuable and useful information which enables them to identify areas to improve and come up with sound business decisions. With the use of data analytics, business processes will be optimized and risks will be managed better.
3. The Power of Blockchain
Blockchain technology has evolved beyond its cryptocurrency roots and is now potentially moving towards enhancement in supply chain management, health care, insurance, government, banking and real estate. Blockchain is now significantly demonstrating a huge impact to the accounting and audit profession.
With Blockchain technology, accountants would gain clarity over the available resources and obligations of the business and could utilize other resources and concentrate to other areas like planning and valuation, rather than allotting so much time in record keeping.
4. Social Media Utilization
The use of social media nowadays helps improve business brand awareness, increase sales, and drive website traffic. When utilized effectively, strategic social media can very much contribute to the profitability of the business. Social media platforms like LinkedIn, Twitter and Facebook help businesses communicate with Clients. Managing social media accounts properly boosts good and positive business exposure which then build trust and confidence to the market community.
5. Role of AI
Artificial intelligence involves machine learning and programmed parameters. AI increases productivity and efficiency of accountants. Automating repetitive and redundant tasks entail reduction in the operating time which then allows human accountants to be more focused on providing business advise to their clients. Adding artificial intelligence to accounting processes will also increase the quality because errors will be reduced while reducing operating costs.
Emerging trends show us one thing: digitization has greatly impacted the accounting sector, but human roles remain just as relevant. The profession is rapidly evolving and addressing productivity optimization with the power of technology. But this does not underrate accounting professionals, it only advances them from a typical number cruncher to that of a value-added business advisor.
Excellence and innovation have always been the driving elements of CRESCO Accounting. Over the years, our approach have helped our clients unleash their business’ potential and it boils down to how the foundation is planned and constantly molded.
Digitization will never be the ‘apocalypse’ for professionals but is a power to wield for efficiency and growth. Plan 2020 the right way: Talk to us, Grow with us.
