Emerging Accounting Trends That You Should Definitely Know

1. Emerging Accounting Trends That You Should Definitely Know Advanced technology has influenced almost every aspect of our lives, and accounting is no exception. For instance, adaptive intelligence, automation, artificial intelligence, minibots, and machine learning are rapidly becoming vital to the accounting and finance team. You might think intelligent technology is new, but many companies already use the automated accounting process. Supplier onboarding, procurement, accounts payable, expense management, audits, purchasing, close processing, and customer queries are a few accounting tasks and processes that machines can do or streamline. Moreover, advanced technological innovations are shaping the future of accounting by impacting the types of jobs that will be available for the accounting services provider in the future. With advanced systems handling repetitive accounting work, human help will be required to deal with more analysis. You are at the right place if you want to know new integrated accounting technologies and advanced analysis techniques. This article explores the emerging accounting trends.

2. Technology and Automation The two most exciting developments in the accounting industry are ever-evolving technology and the automation of repetitive accounting tasks. Some accounting processes that companies are automating include bank reconciliation, inter-company consolidation, approval workflows, journal entries, lease accounting, depreciation, and revenue recognition. While you can automate many other accounting functions in your company, there is a lack of understanding of the technologies and resources required to implement them. However, the organizations that take the leap are availing of the benefits. For example, around 70% of companies have automated more than one-fourth of their accounting functions, and these companies report moderate to substantial ROI (Return on Investment). Role of Artificial Intelligence (AI) Across the industry, the expert accounting services provider believes that AI can and will significantly impact finance and accounting. Many companies use AI and robotic process automation (RPA) to automate highly repetitive tasks, allowing accountants to invest their time in higher-impact and higher-value activities. For example, Accounting Firm EY has applied AI to analyze the lease contracts to quickly capture information on the commencement date, amount to be paid, and renewal or termination options. Moreover, automating these tasks allows the company’s in-house accountants or accounting service provider to spend more time making data-driven decisions. Digital Transformation Faster than ever, many companies are transforming how they do business by leveraging digital technology, with accounting and finance teams at the heart of the digital transformation process. They implement the processes to account for new revenue from subscription models, new physical and digital product offerings, new channels, and more.

3. Accounting Software For a successful robotic process automation (RPA), organizations must standardize the transactional data and merge it from multiple sources in multiple formats, known as harmonizing. Harmonization brings structured, semi-structured, and unstructured data together within a single system. Artificial Intelligence (AI) requires enormous amounts of data to be effective. Moreover, the accountants need to trust the outputs of all enabling technologies. This is where accounting software comes into play. Regarding bookkeeping for ecommerce, 36% of companies plan to implement cloud-based accounting solutions in the coming days. Enterprise resource planning (ERP) systems, for instance, can integrate your accounting software and financial data with other vital business areas, like order, production management, inventory control, supply chain, and more. An integrated ERP platform will consolidate data from these different business areas to provide more actionable insights into the company. Data Analytics and Forecasting Tools Small businesses and larger companies can earn substantial ROI by increasing the use of budgeting, forecasting, planning, and data analytics and visualization tools. With finance functions becoming significantly analytical, technology can help push accounting and finance teams from reactionary and transactional to proactive and analytical. The best example of the increasing demand for analytical and tech-savvy accountants is IMA, which recently launched its Data Analytics and Visualization Fundamentals Certificate. The program is specifically designed to help accounting and finance professionals master the strong critical thinking, problem-solving, and technology skills required for creating advanced business strategies. Workplace Wellness More companies are now implementing workplace wellness programs. It’s a perk provided by employers, but managing these programs can be complex for firms offering accounting services for small business. For example, payroll managers and accountants are responsible for accurately calculating the discounts employees earn on health insurance and wellness programs.

4. It has become imperative for accountants to be updated with the changes to tax laws that can impact how the items in wellness programs count towards tax-deductible business expenses. Cloud Computing Working in the cloud is another significant trend among many emerging accounting trends. With the cloud, professionals can instantly access data and computing capabilities. In addition, another important advantage of a cloud-based system is updating information continuously, which allows accountants to analyze data and make decisions based on real-time information. Journal of Accountancy states that cloud-based technology can ensure constant monitoring rather than intermittent analysis whenever information is updated on the system. Cloud computing is growing rapidly with new intelligent technologies, including machine learning, adaptive intelligence, artificial intelligence, and the Internet of Things integrated into the cloud. As these intelligent technologies become more commonplace, the futuristic accounting industry tends to be more cloud-based. Blockchain Technology Blockchain technology is another trend influencing the demand for professional accountants in the future. It is a computer-based recording system that leverages cryptocurrency with a user-to-user network. While the blockchain has gained popularity worldwide because of Bitcoin, the technology has progressed substantially in other industries. The attractiveness of blockchain accounting has come into the picture because of the possibility of a new type of accounting ledger that can be continuously updated and verified without being altered or corrupted. Now that blockchain enables users to access ledgers in real time, create smart contracts, and record transactions, more accountants are considering utilizing it for seamless accounting functions. All-in-All Accounting is evolving significantly because of intelligent technology, including adaptive intelligence, automation, artificial intelligence, blockchain, and machine learning. The coming years will continue to allow accountants to contribute indispensably to businesses.

5. Moreover, future accounting services for small business will require dedicated professionals ready to update themselves with the accounting industry trends. Adapting to and adopting these trends will help accountants guide and lead companies seamlessly into their next business journey phase. Contact Us: Name: Elevar Accounting Website: www.elevaracc.com Address: 2316 Village Dr, Avenel, New Jersey, United States - 07001 Phone no: +1 551-333-1757 Email: hello@elevarhq.com