Top 5 Accounting Trends Changing The Face Of Accounting Industry
The changing trends in the technology has been a proven solution for time management, collaboration, labor shortages, communication covering all the aspects of accounting. Accounting plays a vital role in functioning of any business; with the number of businesses expanding on the daily basis the presence of strong accounting system has become a need for any business.With accounting being one of the most important element of the businesses; what kind of accounting trends to incorporate this year to stay ahead in the herd.
In the recent years, accounting industry have undergone a huge makeover when compared to how it was handled in the pas. Hence; several bookkeeping and accounting companies and firms are re-shaping and embracing new accounting trends in order to simplify their businesses.
In here; we are going to focus on the top 5 accounting trends that will have a positive impact on the accounting industry.
Top 5 Accounting Trends Changing The Face Of Accounting Industry
1.Cloud Accounting Is On The Rise
Businesses today are embracing cloud technology for their various in-house operations. From data storage to connectivity and reducing business costs. Cloud accounting is an emerging trend. Furthermore; it is being widely used to work and enable easy access to world-class infrastructure without the need to spend huge.
Cloud accounting trends also paves the way for improved collaboration with team members and a better overview of the business’ finances. All it requires a software that runs on servers and connectivity to the internet.
The benefits of cloud accounting are:
- It enables use of cloud-based software from any device using any internet connection.
- Cloud software can be integrated with a wide number of add-on
- It removes the necessity to run applications over a desktop.
- Using cloud is a secure way to protect a business’ intellectual property
2.Automation In The Accounting Industry
Automation tools are expanding to increase communication with leads and prospects without increasing non-billable time hence; several accounting firms and companies have put to practice. Hence; it is gradually eliminating the need for manual data entry hence; saving businesses a great amount of production hours.
Accounting automation is intended to reduce the burden of manual bookkeeping. However; automation and accounting software may seem like a threat for bookkeepers and accountants because; there is a possibility of getting replaced in the future.
The benefits of automation are:
Manually generating financial reports is a complex and time-consuming process. Furthermore; with an automated financial reporting tool users can reduce the time needed to gather data and generate reports.
- They reduce the workload for employees who once manually created reports and often cut overtime hours paid during crunch times when reports come due.
- With an automated financial reporting tool, all data is linked back to original data sources.
- Automated financial tools are designed to improve the efficiency of the company.
3. Accounts Outsourcing Is In Demand And Seems To Be Rising
Accounts outsourcing is one of the rising trends today. However; with the invent of accounting software; outsourcing bookkeeping and accounting functions was less preferred. But; that trend too has been altering now; because companies prefer an expertise and experienced accounting firm than working on a complex accounting software.
With accounting software, businesses still need to hire and train professionals. This was a rising concern of the companies in terms of the cost. As businesses were spending on accounting software and in-house department both.
The benefits of accounts outsourcing are:
- Get to work with the team of experts
- Scalability of business
- Updated with the rules & regulationsZero errors hence; no penalties
- Ample of time to focus on growth and expansion of business
- Increased cash flow
4. Personalized Accounting Software Replacing Bundled Packages
Expensive accounting software packages are no longer an end-to-end solution for the clients. Accounting software companies are now approaching their clients with this newer trend of giving way to customized designed software in which accountants can select add-on to meet clients’ needs.
Understanding software hi-end accounting suites, which offers more than 500 optional features hence; this can be confusing as they do not see the need to use in them for their organization.
The benefits of personalized accounting software are:
- It is specifically built based on the needs of the organization
- It is flexible and can be altered as per the changing requirements for better improvement and execution process
- They are user-friendly hence; easy to operate
- Using customized software you can achieve your tasks easily which your competitor cannot
5. Hour-Based Pricing Are Welcome
Initially hiring an accountant on an hourly basis was expensive as companies used to prefer to have an in-house team. Additionally; with the changing of time; it is one of the booming accounting trends which has shift to up-front or value-based pay in which accountants agree on a set price with clients before completing any work. Hence; this pushes accountants to be more productive and work more efficiently rather than just working more hours.
The benefits of hourly based pricing are:
- With the meteoric rise in talent-pairing platforms hence; you can find even the most unique worker to meet your needs
- They strive to turn in their best work, every time, to maintain client relationship
- The monthly amount of time you save giving up bookkeeping multiply the hours you spend on bookkeeping by your hourly pay rate
- When hiring an independent contractor, you’re selecting from a wide array of specialists
- Hiring an independent contract worker allows you to save money in areas like office space, any equipment needed to perform the task, worker’s compensation insurance, as well asother benefits.
The accounting industry is currently seeing a number of trends. These are just a few of them but; they are game changers. Hence; the focus is changing towards improving the client experience hence; embracing these latest accounting trends will help a lot of companies in getting better productivity, increased clientele and more revenue.
Connect with Service Provider
Get connected within 24 hours to pre-screened, trustworthy and small business friendly service providers for Services in top Indian cities