Even before the COVID-19 pandemic, the necessity for rapid and efficient digital transformation was already lingering on the accounting industry's periphery
In 2020, the increase in employee resignation, growing churn rates, and repetitive cases of data leaks made it clear — a massive accounting software upgrade was in order.
However, what qualities and features must accounting firms prioritize? What kind of demands should they address first and foremost?
There’s a lot to explore and consider when making sense of modern digital accounting tools. To make your choice easier, let's look at the main accounting trends.
1. Emphasis on enterprise resource planning (ERP)
Switching from accounting software to ERP systems became a budding and confidently growing accounting trend as it includes accounting tasks management while injecting more versatility into the workflow.
- Improved data accessibility
An ERP system combines various types of relevant data (accounting activities, financial operations, production management reports) in a single application, making it easier to access and distribute across different teams.
- Easier analytics and reporting
ERP solutions provide customizable dashboards, helping leaders navigate the business landscape, evaluate risks, and make more accurate decisions.
Learn how our Fortune 500 client set the bar for enterprise accounting worldwide
2. Zero tolerance policy for data discrepancies
Data inconsistencies have always been unacceptable in the world of professional accounting. However, nipping such issues in the bud became vital for the company’s success.
- More growth, fewer growing pains
As the company grows, so does its intracompany data movement. With more data to process, recordkeeping is more likely to go wrong. Therefore, company leaders focus on minimizing risks and building solid data chains.
- Safe conditions for investors
Since the pandemic, investors have become more self-conscious about entrusting a company with their money. They expect nothing but complete clarity of all transactions, audits, and reports they receive.
3. The rise of hybrid working models
Even though 66% of employees prefer to work in an office, embracing technology capable of providing accountants the same efficiency regardless of their workplace remains an ongoing accounting trend.
- Reliable employee retention
Given a considerably high 22% turnover rate across accounting firms, introducing more flexibility and convenience into the working model allows business leaders to retain their employees.
- Reduced IT expenses
With fewer workers attending the office, companies need to balance their investments and resources, looking for more flexible data storage options and reimagining their IT and hardware spending.
Is your workplace ready to handle the expanding demand?
4. Automation as the future of productivity
Albeit very useful to implement, automation is still a novelty to most accounting firms, with only 28.2% of accounting experts leveraging its potential. Nevertheless, automation is expected to make a larger presence in the accounting industry by 2023.
- Eradication of human errorUsing advanced technology to put such complex tasks as allocation calculations and journal entries on autopilot takes human error (and, therefore, stress and frustration) out of the equation.
- Efficient human resource management
Automation can take care of around 77% of accounting processes, allowing professionals to dedicate more time to employee training and development.
Learn how we helped a Big Four accounting firm establish a reliable foundation for work automation
5. Increased focus on data security
With such prominent companies as Equifax and Cisco falling victim to hackers, data safety has been an ongoing concern of many businesses working with sensitive customer data.
- Less vulnerable data storage
As hackers prefer to target databases, business leaders need to reimagine their approach to storing data — from introducing new protection protocols to changing their database structure.
- Improved employee safety
Since spear phishing (reaching out to company employees under the guise of a C-level executive or a trusted partner) made up around 83% of phishing attacks, accounting firms continuously upgrade their security measures to prevent cybercriminals from exploiting their clients and employees.
6. Demand for visualization technology
After 2020, at least 39.7% of financial experts reported their intention to utilize visualization technology for improved decision-making. This shift to advanced tech has impacted the accounting industry as well.
- Expanded accountant’s skill set
The evolution of accounting data value goes hand in hand with the growth of the technical skills expected of accounting professionals. Mastering new advanced tools and skills became crucial for growth.
- Bigger accountant’s role
Around 51% of accounting experts believed they could gain leverage in a competitive market by expanding their services from bookkeeping to business forecasting, competitor analysis, and assisting clients with decision-making. This transition, however, requires adopting sophisticated tools for data analysis and visualization.
7. Cryptocurrency adoption keeps making strides
Previously a novelty, now part of mainstream financial activities, the digital currency has gained enough weight to set accounting trends.
- Wider reach across the BFSI sector
Having evolved past energy-hungry and low-trust platforms, blockchain transactions are now recognized by major financial institutions, banking organizations, and investors due to their convenience and safety.
- Faster, bureaucracy-free transactions
One of the benefits of cryptocurrency is the promptness of its operations — something sought after by both businesses and clients. With that trend, accountants are expected to cut out the paperwork and focus on the results.
Where does this leave accounting software?
When it comes to figuring out the technology that would impact the world of accounting software in 2023 and beyond, we can outline the following leaders.
- Delivers better transparency by recording data immutably and in chronological order.
- Provides advanced security via decentralized data storage and encryption.
- Makes accounting data accessible to customers by granting special permissions and eliminating bureaucracy.
- Removes data discrepancies by ensuring consistent data flow across all digital ledgers.
- Automates accounting tasks such as real-time reports, calculation of allocations, and complex journal entries.
- Embeds accuracy and clarity with ML-powered forecasting.
- Analyzes millions of data points for signs of fraud and improved regulatory compliance.
- Runs automated audits on all company documentation, providing accurate data and facilitating risk analysis.
- Adapts to hybrid working models due to instant data accessibility.
- Secures vital data with regular backups and end-to-end encryption.
- Allows saving up on hardware by replacing it with virtual infrastructure.
- Establishes smooth back-and-forth data exchange with clients, generating trust.
However, how to choose the right technology for your needs? Would cloud computing be enough? Should you implement AI? Should you equip every solution available?
Making the right decision is a multi-step campaign involving evaluating your current state, potential adoption challenges, and budget capacity.
Yet, there’s an easier way out — let the Trinetix team do the heavy lifting.
Being deeply familiar with integrating digital solutions into the workflow of accounting firms, our experts can help you build and execute a powerful transformation strategy. Whether it’s modernizing your accounting software, optimizing processes, adding flexibility through cloud, or providing sophisticated blockchain-based data management — we’ve got you covered.
Let’s chat about your journey to smarter, faster, and more efficient accounting operations.