Technology has disrupted almost every industry out there- be it healthcare, tech energy, mobility, or manufacturing. Finance & accounting is no exception either.
Running an accounting business at such a time when technological advancements are happening at a fast pace is no easier task. The same applies to the accountants too who have to go through the learning curve to adapt to the new age accounting.
In short, you need to be aware of what is working and what will be working to adopt the best strategy for your transformation.
So, we have brought to you the top trends that will be shapingthe accounting industry in 2020:
1.Automation and Artificial Intelligence (AI)
As spooky the word AI sounds; thanks to the “Terminator” series, trust me it is not.
According to a study by Forbes, 2020 will be all about automating the labour-intensive tasks such as audits, banking, tax preparation, payrolls. Interestingly, this will be the biggest disruption in accounting industry in 500+ years.
What this means for you?
Accountants/Business owners and AI will be two sides of the same coin, not the competition. There will be a drastic reduction in accounting errors and workload, allowing you to move to advisory roles.
And to your surprise, it has started already. Accounting solutions like Xero, SageOne, QuickBooks Online, and OneUp have begun integrating AI based automation capabilities.
2.Cloud Accounting
Most of you must be aware of what the term “cloud” refers to. Those who don’t- no it has nothing to do with the satellite or clouds up there.
It is a term used to imply that application/software functions don’t process on the user’s computer, but on the servers stationed far away.
So, cloud accounting simply means the accounting software is hosted on remote servers. You feed them the data, it gets processed there and is returned to you.
What this means for you?
Cloud accounting removes the need to install and maintain accounting software on each computer you use. And the result will be- even more remote accounting jobs for collaborative accounting.
Moreover, online accounting also gives the data an additional layer of security from hacking, damaging or being lost.
Around 45% to 58% of businesses have already moved to cloud computing. And by 2026, this will be a $11.8 billion (£9.1 billion) industry, according to the Accounting Today.
Not just this, even the accounting training providers have tweaked their courses to create accounting professionals who are skilled in cloud accounting.
For example- AAT, the world’s leading professional body for Accounting Technicians, grants AAT accounting qualifications after completing the courses (AAT Level 2, AAT Level 3, AAT Level 4) that follow these latest accounting standards.
3.Blockchain
This is another top trend that will be revolutionising accounting.
In simple terms, Block-chain is a fundamentally advanced way to handle fund transfers and finances.
What this means for you?
Until now we have been doing financial transfers through a bank or a financial entity in the middle. Blockchain tech eliminates the need of that entity, and provides improved security. This will enable users to make fund transfers & transactions directly.
While the idea is in prototype stage and is being tested, this surely is going to take more than just the 2020 to be fully adopted. Still, it’s a good idea to keep tabs on this concept.
4.Mobile Computing
As smartphones are getting faster and more powerful, their usage has increased dramatically lately. Everybody wants to live and perform their tasks on the go, be it accessing the data over the internet or using any application.
Accounting services have been sniffing this change since long and working relentlessly to provide applications and mobile optimised accounting solutions.
What this means for you?
Mobile computing is going to prove very helpful for small business owners, who’ll be able to do bookkeeping without delay.
Similarly, large businesses can manage expenses and cash flow, create invoices, track sales and much more right from the smartphones in their pockets.
Isn’t this an incredible shift? In short, there’s going to be even more mobility in the online or cloud accounting.
5.Social Media Integration
Since, a majority of business such as e-com have already started using social media to reach out to their target audience, the accounting firms too are following the same track.
And there’s a reasonable cause behind this effect; the clients are on social media, which is a perfect rendezvous point for both.
Clients can research themselves beforehand to find out if the firm is worth choosing. And the firm or accounting professional, on the other hand, can get more clients and increased website traffic with greater exposure.
Thus, it is a promising business model and is expected to grow by leaps and bounds.
Conclusion
The future in accounting belongs to those who are ready to adapt- and holds true for both accountants and businesses.
AI and automation will definitely lighten the workload that involves repetitive tasks, but won’t affect the decision making and planning level.
Cloud and mobile accounting will accelerate workflow, resulting in the increased user/customer satisfaction rates.
Blockchain is a work in progress and will be the cutting-edge technology when developed. However, it will take a bit more time.
And finally, the booming social media. Accounting firms need to employ strategies and A/B trials to work out a feasible social media business plan.
