Top 5 Accounting Trends That Will Redefine the Industry

Accounting has been undergoing substantial transformation over the past few years. Catalysed by the advent of new technologies, political changes, and sustainable solutions, the accounting industry has become more open to latest trends and is changing for the better.

Accounting is more than just a number-based job today. Clients now expect accountants to provide more value to their business rather than simply maintaining their books and filing taxes. Therefore, several trends such as automation and accounting outsourcing have become crucial to the industry.

The trends in accounting keep changing frequently. As we step into the new era of accounting, we may be looking at a more strategic, expansive, and technological shift in the accounting world. Let’s look at the top five accounting industry trends that will rule the industry in coming years and how accountants can incorporate them in their day-to-day processes.

1. Technology and innovation

Technology already plays a crucial role in accounting. Cumbersome and time-intensive processes such as bookkeeping are now being handled efficiently using the latest accounting software. With accountancy practices opening doors to innovation, groundbreaking technologies such as cloud computing, Artificial Intelligence (AI), blockchain, and automation will rise to prominence in the coming years.

While cloud technology is advantageous in terms of data storage, collaboration, and accessibility, AI uses machine learning and predictive analysis to forecast accounting trends and improve processes. Additionally, automation helps systematise time-intensive tasks and make them quicker and more efficient.

A recent study found that 90% of accountants believe accounting is going through a cultural shift that favours technology. A technological revolution, when paired with outsourcing, can yield the best results for growing accountancy practices. Therefore, top accounting outsourcing companies, too, are stepping into the tech game and experimenting with its impact on routine processes.

Must read: Embrace the Techvolution: If You Can’t Escape It, Why Not Join It?

2. Data security

Data security has always been important for accounting firms. However, in light of the growing cybercrime cases, data security will be of increased prominence going forward.

Since data security is one of the crucial deciding factors for businesses while partnering with a service provider, accountancy practices as well as accounting outsourcing firms adopt the latest essential security standards.

As the UK accounting industry braces for significant changes under the new government, data security standards such as GDPR and ISO 27701 will be the basic requirement while choosing a service provider.

Besides, firms are also training employees to be aware of cyber-attacks and adhering to best practices when working remotely.

3. International expansion

International expansion is yet another progressive and one of the key accounting firm trends currently.

Of these, about 81% of businesses have set sight on Europe and North America, whereas 60% are looking to scale in the regions of Asia Pacific, Latin America, Africa, and the Middle East in the next five years.

With international expansion on their minds, accountancy practices are looking to expand their service portfolio and grow their client base. To make room for these developments, practices are actively adopting time-intensive methods, such as the latest technology and accounting outsourcing.

4. Outsourcing

The importance of outsourcing is not unknown to the accounting world. Outsourcing has, in fact, helped numerous accounting firms over the years to cut operational costs, boost profits, increase efficiency, and transform their practice.

As practices are set to expand their geographic presence and services, outsourcing will play a vital role in creating the capacity to scale. Apart from offshore accounting outsourcing India, onshore outsourcing is slowing taking shape in the UK with the potential to emerge one of the top accounting outsourcing trends in future.

Top outsourcing firms provide multiple engagement models for accounting firms to choose based on their requirements. Both the offshore and onshore models of outsourcing help create capacity for your firm by delegating the core mundane tasks and thus freeing up your internal teams. The latter can then focus on exploring and adding new services to your portfolio, upskilling, building better relationships with clients, and so on.

Must read: How Mid-tier Firms Can Beat Market Players with Outsourcing

5. Mental health

Burnout is common in the accounting industry. Accountants are often under a lot of stress, especially during the ongoing Self Assessment season. As a result, several employees turn quiet quitters or resort to looking for alternate opportunities.

Mental health, therefore, remains a massive concern in the accounting world. Although the stigma around it is slowly lifting, the industry still has a long way to go. Moreover, with clients now demanding more from accountants, the pressure mounting on the latter is massive and needs addressal.

In the coming years, it will be crucial for accountancy firms to address this issue and focus on their staff’s mental wellbeing. Simple methods such as listening to your staff, checking up on them, organising de-stressing activities, and offering time-off can go a long way in nurturing your employees’ mental health.

Besides, accounting firms should also avoid overburdening their staff and resort to capacity creation techniques such as accounting outsourcing. Above all, be a friend to your staff and create an environment where your employees feel comfortable discussing their mental health and helping someone in need.

Conclusion

The world of accounting is constantly evolving. To keep pace with it, accounting firms need to adapt to these changes and focus on their firm’s growth.

The coming years will be dominated by groundbreaking technology and innovations. Accountancy practices must switch to cloud-based accounting solutions, assess the role of AI in accounting, and implement automation to make processes efficient and hassle-free.

Coupled with technology, outsourcing will be crucial in helping accounting firms scale their operations within and beyond geographical boundaries.

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