5 key trends in accounting to watch out for this 2020

Technological advancements and breakthrough innovations have disrupted the entire industry landscape and reshaped how business functions are carried out. Industries, be it healthcare, manufacturing, or communication have witnessed the substantial impacts of the technology trends and the finance and accounting industry is no exception. The emerging trends in accounting aim at streamlining the accounting processes, automating the manual tasks that in turn would improve the efficiency of the accounting systems.

Continuous learning is an inevitable part of most of the industries and the accountants also have to go through the learning curve to adapt to the new age accounting practices in order to stay competitive. In this article, we will discuss the top 5 emerging trends in accounting that are set out to reshape the accounting industry in a rather efficient way. The paradigm shift in the accounting space can be attributed to increasing marketing demands, rules and regulations, growing client/customer demands.

Trend 1: Cloud Accounting Systems

The term ‘cloud computing’ has been a buzzword and businesses irrespective of their size and industry are rapidly embracing the concept. Businesses are trying to harness the ultimate potential that cloud technology has to offer and amplify their business productivity as well as ROI. Businesses are also adopting cloud-based accounting software instead of the traditional methods of accounting to enhance their productivity. A cloud accounting system is rather much similar to conventional accounting software except the fact that in cloud accounting the financial and accounting related data are stored on remote, external servers.

Cloud accounting eliminates the need for accounting system installations on each device of use as the cloud accounting system is hosted on the cloud, enabling 24*7 accesses, anytime, from anywhere. Besides, it adds an extra layer to security to the financial information pertaining to your business, stakeholders and customers.

Trend 2: Artificial Intelligence & Automation

A Forbes study reinstates the pivotal role AI & Automation would be playing in the accounting space. According to the study, 2020 will be all about automating the labor-intensive and time-consuming accounting tasks such as audits, tax preparation, banking and payroll. AI applications in accounting will eliminate redundant accounting errors and streamline the processes for achieving higher efficiency.

AI enables accountants to analyze large volumes of data at a higher speed. The wide-scale adoption of AI in the accounting industry can be attributed to its role in optimizing administrative tasks and accounting processes that may lead to various structural changes. Though AI is transforming the accounting ecosystem, it would not be replacing human roles, rather it would supplement the human decision-making capabilities.

Trend 3: Mobile Accounting

Today’s tech-savvy generation prefer to consume information and perform tasks on-the-go. This has led to the growing popularity of smartphones as it makes accessing data over the internet or using any specific application rather seamless, quick and convenient.

The accounting services industry has been working relentlessly to cater to this rapidly emerging trend, to offer applications and mobile-optimized accounting solutions. With mobile-optimized accounting solutions, small business owners will be able to complete their bookkeeping tasks without any delay and foreseeable glitches. It will prove instrumental for the large enterprises in managing cash flows, expenses, in creating automated invoices, real-time monitoring of sales, with few clicks. This trend is here to stay, so, you better make the switch and adoption quicker.

Trend 4: Blockchain

Blockchain is one of the emerging trends in finance that is set out to revolutionize the way modern-day accounting is done. Ideally, the financial transfers have a bank or a financial entity as the intermediary. However, blockchain tech eliminates the need for the intermediary entity. This optimizes the speed of financial transactions and not to forget, multifold the security of financial data. In addition, it helps in lowering the costs of reconciliation and ledger management. The blockchain tech enables accountants with a more unobstructed view of their organization’s obligations and available resources.

Trend 5: Integrated Social Media Marketing

Social media has become the part and parcel of our everyday lives and when it comes to the professional environment, it has several usages as well. Social media is rapidly emerging as an effective tool for modern-day accountants for branding and sales purposes. Way back in 2014, 77% of accountants leveraged social media to increase their sales turnover and these statistics are going to grow in 2020 and years to come.