It is constantly evolving in systems and business processes, as with every industry. The 2021 CPA exam (Certified Public Accountant), for example, emphasizes automation, data analysis, and a data-driven mentality.
It is important to keep up-to-date with the latest trends in accounting if you are a Chartered accountant or looking for software for your business. These will allow you to work remotely and be more flexible in a post-COVID environment.
Automated Accounting Processes
The accounting industry has seen automation already. An ACCA study found that over 50% of accounting industry executives expect automated accounting systems to be available across multiple industries. In addition, a majority of 70% have also reported significant ROI from automation in their accounting processes.
Accounting automation can automate accounts payable / accounts receivable (AP/AR). Your company owes vendors in the form of credits.
Accounts Payable is (AP). Accounts Receivable (AR) is what your customers owe you on credit. These are some of the ways automation can help you:
Accounts to Pay:
All invoices can extract.
Collect data in a cloud-based database.
Send invoice information to vendors so they can sign off.
Pay your bills on time.
Automated delivery of the initial invoice to customers
Clients should be reminded about late payments
Collect payments securely.
You can deposit the money electronically into your bank account.
Automated accounting systems are now a must-have technology investment.
It is a popular trend in accounting that every business should adopt to their systems. Cloud-based accounting systems allow you to manage your business’ books online.
Cloud accounting software is a great way to take your business to the next level. Take a look at these benefits:
All data related to sales and revenue are automatically imported from your bank account to our cloud server.
Anywhere in the world, you can see your financial situation.
Multi-user access allows you to collaborate online with advisors and team members in real-time.
This dashboard displays important financial information in easy-to-understand graphs reports.
Cloud accounting systems offer endless possibilities.
Data Analytics and Forecasting Tools
Although data analytics isn’t a new trend in accounting, it has gained more power than ever. Accounting firms and businesses use these tools for auditing, budgeting, tax consulting, risk management, and budgeting.
Businesses leverage data analytics to improve their efficiency and manage risks more efficiently.
Rise of Accounting Software Solutions
During the pandemic, the demand for online accounting increased. Accounting software is the best option to do your accounting remotely.
Online accounting software has many integrations that speed up routine tasks. It also uses RPA (Robotic Processing Automation) to standardize transactional information from multiple sources in different formats. Harmonization is another name for this process.
Large enterprises choose Enterprise Resource Planning systems over standalone accounting software. These systems offer enterprises the following features, in addition to an accounting module.
Management of the supply chain
Management of human resources
Due to its direct connection with ledgers, blockchain is one of the hottest trends in accounting. Block chain’s primary function is to keep financial information in a ledger account. It also handles the secure and verifiable transfer of ownership of assets.
Many believe that block chain’s decentralized nature makes it more vulnerable to data manipulation and fraud. It is incorrect. This image demonstrates the secure blockchain framework and how it protects data integrity.
Every major organization is exploring blockchain implementation in its financial processes. For example, Walmart has already tried beta Blockchain among other retail giants in their supply chains.
Blockchain will soon be a game-changer for accountants.
Forensic accounting is one of the newest trends in accounting. But, unfortunately, not many people are aware of it. Law enforcement agencies and private auditing firms employ forensic accountants to investigate, prevent and detect financial crimes like fraud, corruption, or money laundering. They are skilled in the areas of accounting, criminal and civil laws, as well as IT.
These are the main tasks for forensic accountants:
First, use strategies to detect and prevent commercial crime.
To uncover discrepancies or inaccuracies in financial documents, obtain and review them.
Calculate revenue loss and damages caused by contract violations.
Implement fraud risk management programs.
Interview witnesses and suspects involved in financial frauds.
Offer litigation support and present findings to an attorney that can be used as trial evidence in court.
Forensic accountants can help protect your company from fraud and prevent you from losing billions of dollars.
According to industry analysts, one of the hottest accounting trends is to combine technology with financial advisors. This hybrid approach can allow accountants to gain deeper insights through analytics.
Even in accounting, automation cannot replace human beings completely. However, advanced technologies can improve the quality of service provided by accounting firms. Accounting professionals will no longer have to do repetitive and manual tasks.
Combining technology with advisory services increases client confidence and improves advice. Advisor firms can also use AI and robotic process automation (RPA) to understand the client’s needs better and provide tailored advice.
AI’s role in accounting
Artificial Intelligence (AI) is making a positive impact in the accounting industry. It is capable of analysing large amounts of data quickly and accurately. As a result, AI can optimize administrative tasks, workflows, and accounting processes, leading to various structural changes in a company’s business.
Many companies use AI and robotic process automation (RPA) to automate repetitive, routine tasks. For example, it allows accountants to concentrate their time on more important activities.
EY, an accounting firm, uses AI to analyse lease agreements. AI allows for faster capture of information before the start date. It automatically records the amount due along with the termination and renewal options.
The future looks bright for the accounting industry. Many professionals are concerned about losing their jobs to automation. However, automation cannot function without human input. To stay on top of the industry, they need to improve their skills and keep up with the latest accounting trends.
Ab Vasiwal is nurturing his future at Techimply as Software Analyst and Writer with good experience in various genres of blog writing in various industries under the several topics. He loves to write on the latest Software technologies and their impact on business’s.