The year 2020 has been full of chaos, unexpected growth rate, and falling economy of even some of the superpowers of the world.
The arrival of COVID-19 has surely left a void in each and every industry and this is why, instead of regretting what you have lost in the year 2020, you should get ready for the year 2021 and the same applies to the accounting industry as well.
It doesn’t matter how hard we have been hit by a pandemic or any other disaster, accounting will never lose its value. The arrival of the pandemic might have tweaked the tax season, made people more concerned about other departments, but accounting is something that you just can’t avoid or skip.
We are only a few months behind the New Year and everyone hoping for a fresh start in the New Year. Well, you will have to use a similar approach for your accounting practices as well and since even the world of accounting keeps on evolving, we have come up with a list of some of the top accounting trends of 2021 that will help you in staying ahead in the neck-wrenching race of competition.
The increasing focus on automation
Technology might have brought in many changes to each and every industry but one of the biggest gifts of technological solutions to the modern era is automation. With the help of automation, we have got rid of manual workload, minimized errors, and save time as well and the same automation is being used in the world of accounting as well.
Modern-day technologies like AI, Machine Learning, and Big data are helping the accounting industry to adopt automation at its peak. There might be many people displaying automation as a negative force that will take jobs but that’s not true as automation will help professionals to become better.
There was even a study conducted that proved that automation will play a key role in shaping the future of accounting. Even today, Big data is being used in the accounting industry for generating forecasting and AI is being incorporated in accounting software for automating the accounting operations.
Incorporation of blockchain in accounting
Blockchain has become a hot topic of debate in the world of technology as it has the potential to revolutionize the whole world. And the incorporation of blockchain gives us one of the most exciting trends in accounting. While most of the people are focusing on using blockchain for tracking the movement of valuable assets along the supply chain, tech experts are exploring innovative ways to shape future accounting firms.
Blockchain is simply the use of a network of independent computers for recording, sharing, and synchronizing transactions in a ledger that can never be altered. The two main benefits of blockchain are 100% transparency and complete tracking of every event.
The modern-day accounting industry can take advantage of blockchain for tracking the ownership of assets and also for establishing a perspective over their internal workflow for staying under budget. This is just the begging of blockchain in the accounting industry as with time, its application will widen up.
The influx of data analytics in accounting
Modern-day technologies are making each and every type of accounting task easier and automated and this is the main reason why the accounting industry is shifting its focus to data analytics. The modern-day accountants are taking new roles in the industry as advisors and they have started possessing a unique skill set that involves analyzing a large set of data and then interpreting it in order to come with valuable insights and patterns.
By analyzing the available data through the modern-day technological solutions, accountants are able to improve their ability of prediction and decision making. Because of the rise of data analytics in the accounting industry, now firms are looking at data analysis and interpretation as an important skill set that the accountant should have.
Through proper data analytics, firms are able to come up with valuable insights that are helping them to find out potential improvements in the form of accounting and this is why we will witness the influx of data analytics in accounting. It’s true that data analytics as a part of accounting is not completely new but we can say that its importance has increased with time.
The advent of advisory service
Most of the modern-day experts are preferring a hybrid approach that involves both accounting technology and the input of financial advisor in the near future. Well, we can say that this basically comes from the discovery of new solutions for analytics purposes that is allowing modern-day accountants to focus more on decoding data for deeper insights.
Unlike all other tasks in the accounting industry, the decision-making power and capability will always be confined in the hands of the human professionals and this is the main reason why the accounting industry can’t move towards complete automation.
The use of technology is increasing with time in the accounting industry and this is why modern-day accountants are able to focus more on advisory services rather than being restricted to maintaining books only. Different types of services like growth profitability and strategies along with business intelligence are growing rapidly in numbers and this will have a huge impact on accounting.
Getting used to remote work setting
If you will go by the 2019 report published by the US Bureau of Labor Statistics then you will find out that the unemployment rate among accountants is around 2.0%. Well, in the current era, employers are not able to find top talents in the accounting industry and thigh might give us an image of a lack of talent in the accounting industry as well. And because of such situations, employers will need to broaden their search and hiring techniques. And this might be happening for the first time in history that even candidates are dictating some terms of their employment like flexible and remote work settings.
There are many accounting firms out there that are currently promoting remote working and because of the arrival of COVID-19, this practice has been fueled in the accounting industry. Even in the year 2021, there will be no reduction in the promotion of remote working in the accounting industry as modern-day accounting solutions like cloud accounting is making remote working safe and collaborative.
You will be surprised to know that even some of the most reputed and renowned accounting firms out there are offering their employees the chance of remote working and there is nothing wrong with this approach.
The year 2021 might bring hope and a vaccine for the virus that we are currently dealing with but if you want to be prepared for the year 2021 from your accounting perspective then you just can’t ignore the trends mentioned in this blog post. By keeping tabs on these trends, you will be prepared for the changes that the accounting industry will go through in the next year, and thus you will be able to perform better.
Whether you are an accountant, running an accounting firm, or just any other small business, accounting trends will always keep you ahead of your competitors.