- Vidit Agarwal
- January 17, 2022
Technological improvements and shifts in customer attitudes have brought a new age for the accounting sector. These improvements have been long overdue, with statistics indicating that 99 percent of accountants believed the sector was undergoing a technological transformation.
The outbreak of COVID-19 acted as a huge factor in the rapid adaptation of transaction processes. Several changes have disrupted the financial markets during the last couple of years. And there will be other changes in the coming months.The following are the accounting trends that every accountant should pay attention to in 2022 –
-
Automated accounting - In the coming time, accountants will see that there is a 98 percent chance that positions like auditing clerk, bookkeeping, and accounting will be completely automated. Automated methods are more efficient and reduce errors. It would enable accountants to streamline operations and make data-driven choices more quickly than ever before.
Many professionals expressed fear of being replaced by computers during the early forecasts that the accounting industry would soon be fully automated. Today's truth is that, for all of automation's advantages, it is prone to fraud and cyber threats. As a result, accounting professionals would continue to be required to audit.
-
Accounting software and cloud-based accounting are gaining popularity - Accounting automation cannot progress without specific technological improvements. Companies that specialise in the development of accounting software are projected to achieve significant growth. There is a possibility that the accounting software industry will expand at a 6% compound annual growth rate from 2020 to 2024.
Cloud technology is gaining popularity in the accounting business due to its ability to facilitate remote work. Cloud-based accounting systems enable accountants to access data from any location and at any time. They are capable of developing workflows, tracking inventories, managing projects, and communicating with clients remotely.
-
Accounting functions are outsourced - Numerous firms were forced to lay off employees as a result of the COVID-19 pandemic economic issues. On the other hand, the necessity of personnel reductions has opened many businesses' eyes to outsourcing it to the accountants.
Outsourcing enables accountants/accounting firms to get the maximum outcomes without incurring additional pay, training, or tax costs. It enables businesses to more effectively manage their limited resources and increase their profitability.
-
Blockchain — Deloitte, KPMG, Ernst & Young, and Price Waterhouse have all jumped on the Blockchain bandwagon. These companies have employees working on distributed ledger labs with the hope of developing fixed distributed ledgers.
The financial sector is undergoing a revolution as a result of blockchain technology. It has reduced the expense of keeping and reconciling ledgers and made tracking digital assets simpler. Blockchain technology is so alluring that many firms are ready to spend money on it.
-
Data Analytics - Companies are indicating a preference for accountants with a data science analytics background. This is because data analytics is gaining momentum in the accounting business as a result of technology. Accountants with good data analysis skills are now required to serve as advisors.
Although data analytics is not new in accounting, it is only now getting popular as a vital element of the industry. Accountants use data analytics to improve their taxation, risk management, auditing, and consulting services. It is proving to be beneficial in identifying weak spots in transactions that demand immediate attention.
- The Role of Artificial Intelligence – AI automates administrative tasks, boosts work speed and efficiency, and does it with the fewest possible errors. Accountants are turning to artificial intelligence to help them meet the demands for speed and efficiency.According to Sage 2019 statistics, 58% of accountants will use AI to increase their overall productivity. The role of artificial intelligence in the accounting sector is predicted to grow much greater without obliterating the requirement for human-influenced decisions.
- Advisory services - Despite the growing popularity of automation and artificial intelligence (AI) systems, we will never be able to completely eradicate the necessity for human intervention. Rather than that, automation will increase accountants' efficiency and reliability, thereby earning clients' trust.Accountants and finance professionals can leverage artificial intelligence to analyse data, comprehend client behaviour, and forecast future trends in order to deliver quality advice. Advisory services are projected to flourish in an environment where technology and financial advice combine.
-
Mobile computing — For some people, mobile phones have evolved into much more than communication devices. A user might use their mobile phone as a virtual workplace, conducting transactions and keeping data on it.
Accountants must make their services mobile-friendly in order to attract a wider audience. Accounting services, it appears, are already adjusting to the needs of a generation of busy clients managing their businesses on the go. Mobile accounting applications are becoming increasingly prevalent and efficient in the world of accounting.
- Social media – As of 2021, there are 4.20 billion people worldwide who actively use social media platforms. It seems logical to regard social media as a potent marketing tool. Accountants have long recognised the value of social media marketing as a tool for promoting their brand, increasing revenue, and establishing a trustworthy reputation.We should anticipate an increase in the use of social media by accountants as a branding, communication, and learning tool.
-
Accounting with big data and the Internet of Things (IOT) – Big data and the Internet of Things (IoT) are influencing the development of new technologies that enable businesses to broaden the scope and techniques of their assessment. Accountants can spot future problems and develop contingency plans using big data.
Accountants who understand how to exploit big data will be proactive, while those that do not will be reactive. According to Dresner, 63% of firms worldwide expect to adopt big data processing. Finance and accounting professionals are now more than ever required to focus on identifying useful data and advising businesses on how to act on their findings.
2022 will continue to provide opportunities for accountants to demonstrate their fighting spirit and indispensable role in business. They'll adapt to and adopt trends in order to assist in guiding and leading their businesses into the next phase of their respective business journeys.
