Year 2017 saw many significant changes in the accounting sector and the transformations indicate no signs of slowing down. With constantly changing landscape, accountants need to be at least two steps ahead to remain relevant. Identifying the upcoming trends is one step towards ensuring productivity and success.
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Let’s take a look at top five accounting trends for 2018.
1. Adoption of Cloud Accounting
Many accounting firms depend on the cloud for many operations from reducing business costs to multiple accessibilities. Cloud is being increasingly used to enable easy access to the first-class infrastructure without spending a huge amount of money.
They can access important files from anywhere, anytime, making these firms more competent and organized.
Cloud accounting also offers better collaboration with clients and a better overview of company’s finances. Therefore, firms adopting cloud technology will have more control over time. A research by Wolters Kluwer “Can the accounting profession keep up with clients and the cloud? received a resounding answer: Yes, accountants are the role models.
Not only they are sharing files on the cloud but are getting benefits of various cloud-based solutions.
2. Increase in Automation
Another trend that can save businesses or accountants a great amount of time is automation. Automation is great for compliance work. It is predicted that in the year 2018 accounting companies will be in a place where they will not be required to adjust their expenses through manual entry or categorization.
Automated processes are intended to reduce the burden of bookkeeping and help accountants use that time to focus on real-time accounting issues.
Apart from saving time, automation also improves reliability and integrity of data. It leads to improved accuracy, cost savings, and faster processing. For example, you can develop customer-centric solutions for unique billing without searching for hours. This results in great client satisfaction and fewer payment issues.
3. Outsourcing Will Take A Center Stage
Many accounting firms seek to help customers handle their accounting needs with minimal resources. However, this doesn’t suit all the firms especially the companies handling complex accounting processes.
Outsourcing is the best option for such companies and is also one of the biggest trends in the accounting sector in 2018.
A research by Deloitte survey states that outsourcing accounting processes increased in 2016 worldwide. Tax preparation is one of the popular choice apart from payroll, tax planning, auditing and personal finances. Well regarded outsourcing firms would not only bring expert knowledge and skills but years of experience in handling complex accounting processes.
4. The Quantum Jump to Mobile Accounting
The widespread availability of internet services, increasing broadband speeds and pervasive use of smartphones are compelling accountants to get accustomed. Mobile computing is now moving from gadget status to must-have for businesses.
Image: Benefits of Mobile Accounting
Mobile accounting provides tools to accountants which make it possible for them to receive real-time updates and analyze their implications automatically. They are adding screen sharing, instant messaging and video conferencing tools to their lists and setting their clients with cloud accounting and apps which integrate with their accounting software.
This has made it easier for them to take up the role of consultants instead of just being bookkeepers.
5. Big Data Will Change Accountancy
Along with mobile computing comes an increase in Big Data and IoT, which are reaching into the accounting sector. Big Data provides businesses unprecedented amounts of information and powerful insights into client requirements.
Accounting professionals will use these tools to move from their usual tasks like bookkeeping, record keeping, and analysis to strategic business consultants. In the coming years, big data will help accountants in improved decision making and provide more personalized tax advice to their clients.
2018 and Beyond
These are top accounting trends for 2018. While they are not the only ones out there but are game changers. Possibilities are endless for firms willing to prosper. In order to achieve productivity and keep up with the industry, it is important to know which trend would work for your company.