The accounting industry has changed recently. The advancements in technology and the COVID-19 pandemic have also accelerated this change. For example, work from home boosted the adoption of cloud-based accounting software.
This article explains the top 5 accounting trends necessary for your business in 2024. Following them will ensure that your organization has access to tools for better operational efficiency and productivity.
Here, have a look.
1. Blockchain Utilization
2021 witnessed the meteoric rise of cryptocurrencies like Bitcoin and Shiba Inu and made everyone aware of blockchain technology. However, blockchain is not only limited to cryptocurrencies. It has multiple use cases in industries, including accounting.
Blockchain consists of “blocks of information”, which are shared over a network of interconnected computer systems (called a chain). Any changes made are recorded in the ledger and can be viewed by individual systems on the network. The records are immutable, with each transaction having its unique digital signature known as a hash.
This way, multiple viewers can examine each transaction processed on their blockchain network. Ultimately, it makes blockchain a remarkable tool for auditing financial transactions and preventing data inconsistency.
Furthermore, everything is maintained in joint registers. Thus, your employees can collaborate to audit transactions and route them for faster approvals.
2. Task Automation
For most people, automation means replacing human users with robots. But automation in accounting is different. It uses a software solution for processing accounting tasks. It reduces manual dependency on tasks like invoice entries and lets accountants work with greater efficiency.
So, instead of taking jobs away, automated accounting solutions empower your accountants and auditors. They can devote themselves to advisory services like assessing the financial health of your clients and developing necessary business strategies.
The accounting sector favors automation and deploys up to 36.29% of automated technology! And why shouldn’t they?
Furthermore, automation can be set up to process important tasks like recurrent payments and improve your revenue collection with pinpoint accuracy.
3. Cloud Accounting
Cloud accounting does more than impact your business—it completely revolutionizes it. There are various reasons why accounting professionals favor it.
Firstly, it allows you to access your financial data remotely. Unlike the traditional accounting environment, access to your data is not limited to a particular device. You can use any device to access it from anywhere, anytime via the Internet. This way, you can assess your business health on the go.
Also, you should host your favorite accounting application like QuickBooks from a top hosting provider. They offer top-rated security measures for safeguarding your sensitive financial data. These features ensure your data remains safely stored.
4. AI Involvement
Whenever an AI is involved, the main question that everyone asks is, can it replace human intelligence? While there is still a long way to do so, AI boasts tremendous potential. This is supported by an MIT study, where 85% of participants believed using AI will give them a competitive edge.
In the accounting sector, AI can help you accomplish essential accounting tasks efficiently. For instance, let’s talk about detecting fraudulent activities. AI can mark any anomalies and flag them for human review (even in large data sets). This way, instead of going through a document, accountants can visit the flagged indications and determine their veracity.
With AI, you can create algorithms to analyze data and get hidden insights to provide a proactive approach for your clients. You can audit accounts, manage invoices, or analyze risks based on pre-input assessment models.
5. Social Marketing
Most accounting firms underrate the importance of social media in business growth. In this age of Metaverse, will you paste flyers around for promotion?
Just have a look at these crazy Instagram statistics! About 92% of Instagram users have admitted that they followed a brand or visited their business after seeing their advertisement on the platform.
Similarly, you can also use social networking sites to promote your accounting firm and increase website traffic and user engagement.
With effective social marketing, you can create more opportunities for your business. Back those with excellent accounting services, and you will see yourself manifesting amazing business growth in 2022!
These accounting trends point in one direction—technology and digitization.
The use of blockchain technology ensures that your financial data is safe. It also plays a vital role in external audits. Cloud accounting offers multiple benefits such as saving time, reducing errors, and analyzing data accurately. Automation results in reducing costs by optimizing processes.
All these benefits become even more important because of the challenges brought in by the COVID-19 pandemic.