Accounting is a profession that’s been around for centuries, and it’s not going anywhere. Even then, many new trends have emerged over the years showing how the industry is changing. These trends aren’t just affecting how you do your jobs—they’re also changing how you think about them.
Here are six big-picture ideas about what these changes mean to you and your firm in the present and future:
The cloud will become the dominant platform for accounting software
Cloud computing is the future of accounting software. Cloud computing provides a suite of benefits to the user, including:
- Security: Cloud-based systems are more secure because they use multiple layers of encryption and data protection.
- Cost savings: They are often cheaper than on-premise software because they require less hardware, infrastructure, and maintenance costs.
- Flexibility: You can access your data from anywhere and anytime, making it easier to work remotely or collaborate with others.
- Scalability: A cloud solution can scale up quickly with you instead of requiring more expensive hardware upgrades.
Security will be a primary concern than ever
Another major trend in accounting that you need to be aware of is data security. Data breaches and hacking are among the most common methods used by criminals looking to steal money from you, so it’s something that all accountants will have to consider more than ever in the past few years.
Unfortunately, as an accountant, you’re not just at the risk of being hacked by cybercriminals; your data can also be stolen internally by employees.
Data analytics will automate more and more of your accounting tasks
Data analytics is a substantial emerging fad in the field of accounting trends. The very concept of data analytics is to use numbers and statistics to automate tasks dependent on humans.
Data analytics has already been used in accounting for years! It’s not as well known because it’s usually not talked about publicly.
Intuit experts explain, “Using innovative technology to develop products and services that make tax and accounting work easier for industry professionals and consumers.”
Automation will take over manual accounting tasks
Automation will take over manual accounting tasks, including tax preparation and financial reporting. This has been happening for years, but it’s now where even small businesses can use automation to handle their books without hiring an accountant.
These benefits are apparent: less work for you and more time to focus on things like marketing or product development.
Companies will want more comprehensive tax services from their accountant
As you can see, there’s quite a bit to learn. So what does this mean for you? It means that if your accounting firm hasn’t offered comprehensive tax services in the past, they’ll be doing it now. So you should expect that they’ll want to be fully up-to-date on the latest developments so that they’re best positioned to help their clients plan and manage their tax obligations.
Artificial intelligence will play a larger role in accounting software
AI is already a part of accounting technology, but it’s still limited. The use of AI will expand as more companies start using it and the technology becomes more sophisticated. One example is chatbots that can answer basic questions through natural language processing.
These six trends show how accounting is adapting to the needs of today’s businesses. For more information on accounting trends, reference blog content online for the latest updates.