Technology has expended wings from daily core works of human existence to complicated business operations. As days arrive, the world is ready to witness every possible tech innovations inculcated into our lives. In a similar way, the accounting industry has also believed the power of technology keeping in counts the thousands of benefits that the technology holds for them.
However, in the coming years, the accounting industry will be out of every bit of slovenly induced objections and errors. The major development of accounting credits to cloud technology. From options like QuickBooks hosting to other ways of cloud-based accounting, the cloud has eased the workload of accountants by two-fold and have encouraged accountants to focus more on productive accounting than numerical accounting.
Accounting firms have chosen cloud accounting rather than traditional accounting ways. Here are the statistics showing firms and their accounting choices.
Let’s look at the major advancements that the 2021 accounting will hold.
1. The automated accounting
According to the India Accounting Software Market, the accounting software market will grow by a CAGR of 14% in 2021. With the automation industry exceeding 83 billion US Dollars by 2021, the accounting industry will also see a spike in the increased automated accounting process.
Automation is the future of accounting. With the least confusion and minimized errors, the firms could generate more revenue even at tough times and could smartly invest in other productive operations without compromising their security. Also, automated accounting will provide more space to reduced labor work and more machine work which means lesser errors while calculation and implementation.
The accountants and CPAs can compile more data and utilize them with the help of automated accounting. They can use more accounting software which provides better accounting solutions and assure data-driven decisions for their businesses. With automated accounting, everything will be calculated, the business decisions will rely on numbers rather than predictions.
2. Accounting with cloud
Cloud accounting is the future as the cloud is becoming a stable and permanent place for accounting firms. As the cloud provides anytime, anywhere access to the systems, accounting firms are willingly shifting to cloud accounting. Flexi states that 67% of the accountants are relying on cloud accounting rather than traditional accounting as the cloud reduces the labor costs by 50%.
Another advantage of cloud accounting is that it saves time making the work easier for accounting firms and accountants. A total of 53% of accountants use cloud-based accounting for business communications and project management and assures their work is easily handled by cloud solutions. From creating an inventory to managing sales and expenses, cloud accounting handles everything for the accountants.
3. Data analytics and blockchain in accounting
The concept of data analytics is not new in the field of accounting but the pace of analytics is definitely growing with time. Accountants and firms are increasingly using unique analytical views to produce more valuable insights. This not only identifies the disguised critical information but also helps in improving them. With data analytics, the financial processes are continuously developing and more industry-specific needs are fulfilled. Overall, the accountants, CPAs, and accounting firms are using data analytics in consulting, risk management, auditing, and tax submissions without any errors.
Statista reports a sudden and unexpected growth of blockchain technology into accounting with over $1 billion investment over the past few years which signifies the participation of blockchain for the good of accounting. The accounting industry has already changed a lot by providing ownership of assets and maintaining accurate financial records. The accountants and firms are getting clarity over the obligations and are using the same for improvised efficiency.
Blockchain will further allow the reduced need for reconciliation and dispute management along with increased certainty transactions thereby helping the accountants to focus on more areas of accounting. A majority of accounting firms will take notes from Deloitte and KPMG to use blockchain in the coming years with better opportunities for optimizing accounting tasks.
4. Big Data into accounting
Major accounting firms like BDO, Grant Thornton, and RSM are teaching their employees to have a better knowledge of big data and data analytics which surely shows big data is playing a role in changing the accounting world. Big data grants more expanded assessment methods using which the businesses transform internal data sets into a more vigorous and secure analysis.
Here are some of the major uses of big data in the accounting industry.
- Advanced data analysis for productive accounting
- Better insights into the accounting data
- Understanding the marketing trends and analyze competitors
5. Accounting Advisory Services
Accounting Advisory Services comprises of a team that provides accounting and financial reporting advice to firms and accountants. The AAS helps to audit and non-audit a wide range of transactions and events following accounting standards and effective management strategies.
More accounting firms will include accounting advisory services in the coming years. No machine can be a better financial advisor than humans as humans are the ones responsible for decision making rather than bots or technical advancements. As the accounting industry will be blooming in the future, there will be more need for advisory services. The firms and accountants, therefore, should focus on services that can help in analyzing data, come up with authentic insights, and advise the best for the sustainability of the firm.