Over the years, the world is a witness to the evolving industrial practices propelled by the fuel of technology and innovation. Working in a professional accounting tech industry is a transformational experience as well. Nowadays, most accountants use digital tools and make efforts to optimize processes enabling paperless operations.
As the technology continues to develop and excel in automating several accounting functions, there are rounds of talks happening across the globe about the future prospects of accounting done with zero human intervention.
With the emerging technological trends in accounting industry empowered by cloud, artificial intelligence, and blockchain, the entire financial services industry will reduce the manual data entry process leading to improvement in the speed, quality, and accuracy of the data.
The accountants who will adopt the new trends in the accounting information systems will have an upper hand to promote their work as value-added advisers who are trusted analysts rather than those number-crunchers.
Accounting Industry Driven By Rapid Technological Change
A worldwide report reveals around 90% of accountants are confident about the cultural shift in the accounting industry by the end of the decade. The impact of such a shift has already penetrated into the business services, hiring practices, and work-from-home practices. This kind of cultural shift is driven by several factors that are based on the generations and demands of the clients.
Listed below are the top accounting trends to watch out for and are believed to bring a sea change in the accounting industry aiming to shape better ventures.
- Leveraging The Power of Cloud
- Remote Workforce & Offshore Staffing
- Accounting Software Solutions
- Impact of The Big Data
- Ensuring Quality with Data Analytics
- Accelerating Automation
- Blockchain Breakthrough
Leveraging The Power of Cloud
The global market for accounting software will rise to $11.8 billion by 2026, says Accounting Today. The most emerging areas of accounting now practice complete digitalization. The impact of cloud accounting and SaaS software applications has enabled businesses to access financial data from any internet-enabled device with powerful UI/UX features.
The ecosystem of applications is blooming enabling integration with accounting platforms with great efficiency, connectivity, and streamlining of back-office processes across the industry. As an example, online Quickbooks acquired 2 million subscribers just in the year 2017. Moreover, a report published by Sage in the book “The Practice of Now” reveals around 67% of accountants accept cloud-based solutions as more preferable and streamlined as compared to desktop accounting solutions.
The above graph represents a sample view of the emerging popularity of cloud-based accounting solutions in the accounting ecosystem.
Remote Workforce & Offshore Staffing
Forbes was the first one to report the growing number of the remote workforce even before the pandemic broke. However, the recent statistics by GetApp reveal the continuation of the same trend in manifold numbers.
Another interesting observation done by the US Bureau of Labor Statistics talks about the rising percentage of unemployability in the times of pandemic from 2% to 3.5%. And to overcome this shortfall and ensure profit maximization, top finance experts and professionals from the countries began to adapt and implement advanced technological changes leading to promote remote work setup.
Accounting Software Solutions
The current trends in managerial accounting are undergoing cut-throat competition. Most of the accounting operations are shifting to the cloud platform and need professionally hosted solutions. As a result, most businesses are now adopting cloud-based accounting software solutions that are user-friendly, have unique features and functionalities, and give robust solutions.
Based on the prediction of the future of accounting software solutions and its impact on the industry, reveals an 8.5% CAGR growth rate stands out to be around $19.6 billion in numbers. Some of the best trending software that is going to rock the show and has marked their strong digital footprints are Quickbooks, Gusto, FreeAgent, Xero, and much more.
Impact of The Big Data
The role of big data is crucial in terms of completing huge financial and accounting projects with efficiency and accuracy. Recently, financial experts are resorting to big data as it serves as a great support to assess various methods adopted by accounting firms and organizations. Big data is a silent player giving solid performance behind the scenes.
The vital internal data sets are transformed into dynamic and security-driven data analytics giving constant aid to provide actionable insights for evaluating various parameters. The constant development in the finance industry has led to increasing probabilities of using big data in every finance aspect in the coming future.
Ensuring Quality with Data Analytics
Similar to the promising future of Big Data, the impact of data analytics is equally remarkable among the group of accounting and financial companies.
With the adoption of data analytics in accounting firms, accountants can identify operational inefficiencies, collect valuable financial insights, track clients' progress, and develop accurate forecasting models. Most industries will embrace data analytics by the end of 2022 based on the segregation of various service values and accurate decision-making processes.
For strategizing better advisory businesses, data specialists will be more in demand in the coming years.
The blockchain permits secured, tamper-proof and transparent transactions that are allocated with ledger technology. Accounting firms are using blockchain technology with great caution. However, blockchain has proven the way it revolutionizes the operations of businesses.
Statista reports project an approximate $1.1 billion spend on blockchain technology by the end of 2022. Moreover, blockchain records and stores assets, transactions, and liabilities, and provides various methods of recording cash flow and account reconciliation. Blockchain is on the move to transform the accounting sector by way of ledger maintenance and low-cost reconciliation. Other future possibilities can be auto invoicing, audit trails, and payments.
How Cube Accounting Solutions Will Help You Adapt to The Future Trends?
As the accounting industry is changing, companies need to stay positive and competitive in the digital landscape.
With Cube Accounting Solutions, your job will be easier as we collect all the client information and documentation. Be it client onboarding, month-end bookkeeping, or payroll handling, we help you keep all the clients' information remain in one place with various features like auto-reminders and request templates. Your team will now be able to spend more time adding value to providing quality services to your clients.
Visit us at our website www.cubeaccoutingsolutions.com or talk to our experts for futuristic accounting solutions.