Aug 18, 2022

Top 6 Accounting Trends of 2021

Top 6 Accounting Trends of 2021

It's been a while since we've taken a look at the accounting trends, and we’re happy to report that there are still plenty of new things to discuss. From cashless transactions to cryptocurrency, small business owners and financial leaders have plenty of opportunities for growth this year. Let's dive in! 

The rise of the cloud. 

The accounting world seems to have found a viable alternative to the paper trail accounting that we've grown accustomed to. Accounting and finance (these terms are used interchangeably throughout this article) is now easier than ever before. Cloud accounting solutions offer a digital accounting process that can help keep your company's information safe and secure; whether you're tracking inventory.

Some of the most popular cloud accounting tools are Quickbooks, Sage, Xero, Wave, and Freshbooks. These accounting software are being used by companies all over the world, helping them improve their productivity and quality of work.

Automation and artificial intelligence in accounting.

The accounting industry is better equipped than ever before to help businesses run smoothly. Automation in accounting allows accounting and finance professionals to more easily manage business financials without needing an army of employees. AI provides the opportunity for accounting professionals to make better choices about what needs attention first, increasing profit margins and your bottom line.

With automation and artificial intelligence, accounting departments can provide accounting services to a fraction of the previous cost, and manage customer accounting and data more efficiently with automation.

With accounting innovation, we're able to keep up with technology in an increasingly fast-growing world. This frees up time for accounting professionals and finance leaders to focus their attention to more strategic tasks for their business. 

Blockchain Technology

Blockchain technology in accounting can help in many ways.  Due to its structure, accounting entries are resistant to modification once they're posted. 

Blockchain accounting is still in its infancy, but the possibilities for accounting improvement with blockchain look promising. Its incredible security offering makes it an ideal technology for finance and accounting. 

The future of accounting is bright with emerging technology innovations like blockchain accounting. With increased speed and reliability of data updates by blockchains, accounting processes will be more secure and agile.

Offshore Remote Staffing or Outsourcing for Efficiency

Offshore accounting staff and accounting services have become an essential part of accounting. The accounting service is performed remotely using advanced communication technology methods such as email, live chat, and other communication tools.

A qualified accounting professional from overseas can be hired for a relatively lower price while making accounting more profitable, efficient, and agile with off-shoring accounting professionals.

Companies have been hiring offshore remote staff and have proven to help them increase their capacity, save on labor costs, and improve productivity. Thus, enabling businesses to scale operations faster and at much lower costs. 

Data Analytics and Data Science

Big accounting firms have recently employed digital accounting tools that can help them to perform accounting tasks more efficiently.   These accounting tools use data analytics and data science technologies that have become essential in today's accounting industry. Data analytics is a carefully planned and structured information gathering process designed to extract meaningful insights from accounting departments' data assets. This data can be useful in improving work and add value to your clients.

Data science takes analytics a step further by applying predictive modeling to accounting data in order to make accurate predictions and uncover new insights. Data mining accounting software can be used to analyze accounting information with the goal of discovering patterns, trends, and other useful accounting information that you may have never known.

Security in Accounting

With the widespread use of accounting accounting software, it is crucial that accounting firms keep their data safe.   Auditing accounting software regularly for security flaws and breaches is an important security measure to ensure good accounting practice in the office.

Data analysis can be implemented anywhere from accounting departments to remote locations where accounting professionals work remotely with other employees from different countries. As such, the use of technologies such as Virtual Private Networks (VPN) and Anti-Virus Programs do help in securing financial data.

The accounting profession has seen a huge shift in the last decade, and it shows no signs of slowing down. 

In this blog post, we’ve covered some of the top trends that you can expect to see more often as time goes on - from cloud computing to data analytics, there are plenty of ways for accountants to stay ahead by adapting their practices accordingly. 

If you want help navigating these changes or figuring out which trend is right for your business, don't hesitate to schedule a free call with us today!