Technological adoption in the accounting industry that has started in early 2019 scaled up massively in the last couple of years. Cloud-accounting, automated accounting software, agile and remote working methodologies, outsourced bookkeeping and accounting services – the pandemic necessitated remote working has brought-in many new operational efficiencies.
Now the onus is on accounting firms to stay ahead of the curve and identify the right technological trends that save time, cost and further improve process efficiencies – a necessity for businesses post this pandemic.
To make this possible our accountants and resources at Outsourced Bookkeeping are always on the lookout for technological trends and advancements in the accounting industry. And after thorough research, we have zeroed in on following accounting trends that can make a difference and even transform accounting operations. If you are an accounting firm that is on looking to invest in accounting technology, then here are 3 accounting trends you must keep an eye on.
3 Key Accounting Trends That Every Accounting Firm Should Keep an Eye on in 2022:
Data Analytics in Accounting: Data analytics help businesses uncover valuable financial insights to further improve process efficiency, reduce risk and discover new opportunities. With automated accounting systems that produce tonnes of data day-in and day-out the need for data analysis is higher than ever.
For example, auditors can make more precise recommendations by monitoring and analysing large data sets. Tax consultants can evaluate and analyse complex tax questions and scenarios to make faster decisions regarding investment opportunities.
In 2022, an accounting firm is expected to fill the role of a financial consultant and advisor for small and medium businesses. With the rapid rise in entrepreneurship, new businesses need are in need of accounting firms with strong analytics tool set that enables them to extract more insights from their accounting and financial data.
Analytics that provide actionable insights to boost financial performance is the most exciting niche in accounting which can help accounting firms forge a strong relationship with business leaders today. So every accounting firm must consider blending their existing accounting expertise with data analytics tools to provide support to industry-specific needs by providing more value.
Blockchain in Accounting: Residing in the fringes for more than half a decade now, 20202 might well be the year Blockchain receives its limelight, especially in accounting. A decentralized and distributed technology, Blockchain when leveraged in accounting has the potential to transform the accounting industry in myriad ways.
- For starters, Blockchain reduces the costs of reconciling and maintaining ledgers, and provides absolute certainty over the history of assets.
- Blockchain technology can revolutionize how companies aggregate their data making the job of the auditor more efficient and productive. Since the majority of the business audit is verifying the accuracy of financial information, accounting professionals are left with time and energy to focus on more important questions.
- Blockchain technology essentially eliminates the possibility of scams and fraudsters and simplifies money collection with its smart contracts.
The distributed ledger technology makes it impregnable to scams or hacks, eliminates the need for paper trail audits, manual entries and reconciliation works. When adopted Blockchain tech could even completely replace bookkeeping and reconciliation which is one reason why accounting firms must keep a close eye on this technology in 2022.
However, to truly leverage the Blockchain, it must be standardised, developed and optimized to pave way for the Blockchain accounting solutions and this requires the expertise of accountants. Major players like Deloitte, PwC, EY, and KPMG have already started and are continuing their expansion in the field of Blockchain. Any accounting firm that aims to stay ahead of the competition much keep a close eye on the implication and advancements of Blockchain in 2022.
AI in Bookkeeping and Accounting: According to a CNBC survey, AI still ranks at the top when it comes to technologies that businesses wish to leverage more in 2022. AI in accounting automates repetitive and mundane tasks, digs up valuable insights from data analysis, makes product recommendations, analyses lease contracts simplify bookkeeping, powers customer service with chatbots and more.
While automation of repetitive accounting tasks is being widely adopted by accounting firms all around the world, AI still seems to be in the nascent stages. In 2022 Accounting firms need to take a proactive approach in leveraging AI in the accounting process to streamline their accounting processes and leverage the power of intelligent automation to provide better value.
That said, our accountants already leverage data analytics in tax, auditing risk management and consulting services at Outsourced Bookkeeping. We also employ AI-powered automation software for our bookkeeping and accounting services & processes to extract value from the intelligent automation capabilities. If you are a CPA firm that is looking to outsource Bookkeeping and Accounting Services or Accounts Payable Services to a remote accounting firm with an advanced technology stack, you can contact Outsourced Bookkeeping here: https://outsourcedbookeeping.com/