Accounting technology is always in flux and is constantly evolving. The productivity optimization accounting technology offers, the efficiency it delivers and the money it saves are directly proportional to the sophistication of technology (and also their fit).A business that is looking to gain an edge over the competition or a CPA firms that is aiming to get done more in less time must always lookout for new accounting technology trends that can cater to their requirements.
As a remote accounting firm that delivers Outsourced Bookkeeping, Accounts Payable and Accounts Receivable Services we are at a constant vigil to identify and incorporate the right accounting technology tools into our mix.
Having worked with CPA firms as their outsourcing partner we have also noticed the keenness for adopting new accounting technology trends. Given most of the firms as their niche, they can miss out on new technology trends in accounting that can potentially make their job easier. Â If you are a CPA firm that is in a similar boat, then this blog is for you. From the notes of our accounting experts at Outsourced Bookkeeping we list down 3 accounting technology trends a CPA firm must lookout in 2022:
Top 3 Technology Trends CPA Firms Are Missing Out on in 2022:
Data Analytics in Accounting: Data is the new oil today and the finance and accounting industry is loaded with data. And yet the practice of data analytics to extract valuable insights is only catching up. But technology-savvy accounting firms are making most of their analytics capabilities to unlock new opportunities in all streams of accounting. Some of the common practices include:
- Continuous auditing, monitoring and analysis for internal and external audits.
- Financial analysis and planning to chart the best plan of action in a situation.
- Analysis of complex tax equations to make quicker and more proactive investment decisions.
Today is also being leveraged in risk assessment, tax, auditing and consulting. In addition to unlocking new business opportunities, data analytics significantly improves efficiency and accuracy enabling CPAs to deliver greater value to their clients.
Cloud Data Security:Â The wealth of data in the accounting industry also makes it vulnerable to cyberattacks. Phishing, malware, ransomware, DDOS attacks, Cryptojacking and more, hackers come up with advanced strategies every year and businesses need to step up their security game too. Given the sensitive nature of financial information stored in the servers, a mild breach can have everlasting repercussions.
As firms juggle multiple cloud-based accounting software and tools, the data stored in the cloud is always at risk without the right security and backups. Leveraging sophisticated password manager tools, robust firewalls/end-point protection, adhering to two-factor authentications, regular audit of third party applications, and using VPNs when needed are some of the latest trends in data security that firms can adopt to keep their data safe.
Blockchain in Accounting:Â Â As a distributed digital ledger technology that is tamper-proof, Blockchain can be the next stage of evolution in certain branches of accounting. For starters, instead of using separate records, blockchain can be used to record transactions on irreversible records that are cryptographically sealed. So tampering or falsifying the records becomes impossible practically.
Blockchain provides clear irreversible accounting of transactions auditing is simplified so will reconciliation. Even better as a digital ledger it could even eliminate the mundane and tedious process of bookkeeping and reconciliation to help accounting resources focus more on the strategic side of accounting. The transactional accurateness of the blockchain when combined with data analytics can drastically increase efficiency and productivity during an audit.
Though Blockchain seemed to be futuristic technology it is slowly gaining traction in the accounting world. Given the disruptive potential of Blockchain, CPA auditors must have close look at the technology and keep track of its developments to leverage it.
Leverage Cutting-edge Accounting Technology by Outsourcing Bookkeeping & Accounting Services
Remote accounting services are already being leveraged by CPA firms. Cloud accounting software and automation have already started to become a norm in the accounting industry. AI and Big data are being packaged with cloud accounting software and still do have time to gain traction. But Blockchain and Data Analytics are in the right stage for mass adoption to gain significant benefit which is why our accounting experts at Outsourced Bookkeeping picked them to be the 3 top accounting technology trends in 2022 for CPA firms.
That said, not every CPA firm is equipped with enough resources and time to adopt the above technology trends to gain an edge over their competitors. In that case, CPA firms can consider outsource their bookkeeping and accounting services to fill their gaps while leveraging cutting-edge technology infrastructure. If you are a CPA firm looking for an outsourcing partner for your accounting and bookkeeping requirements, our experts at Outsourced Bookkeeping can help. You can contact us here: https://www.outsourcedbookeeping.com/
