8 Accounting Trends Forecast to Shape Businesses in 2024 that will impact the industry. Where the pandemic has jolted the current business landscape and brought the entire business industry to stand still, even for a small period; it hasn’t been able to stop the upsurge in technology and automated functions. Even though technological disruptions are moving rapidly toward the accounting industry, technical fixes like on-premise solutions, cloud-based subscriptions, SaaS, and others are also standing in the way.
In fact, a report from Sage revealed that the majority of accountants (approx. 90%) are seeing a cultural shift, making the accounting industry inclined more toward technological adoption. The best aspect of this shift that is gradually coming into the light is the use of advanced solutions. This in turn is helping enterprises to meet client demands, generation changes, and marketing regulations and demands.
In this write-up, we will be looking at some of the top accounting trends that are actually influencing the Accounting Industry’s cultural shift and promising to shape bigger ventures.
1. Cloud-Based Accounting
If you take a closer look, you will find that accounting services on the cloud have become a trend. With its peerless feature of accessing virtual systems anytime and from anywhere, cloud-based accounting systems have captured the majority of the accounting industry.
As per the report “The Practice of Now,” published by Sage, nearly 67% of accountants agree their jobs are streamlined and quality-enhanced due to cloud-based solutions. Another revelation from the same report highlighted around 45% of small companies uses cloud accounting.
As for the prediction, the accounting industry is going to take a huge leap in comprehensive analytics and financial reporting. Added to this, the annual revenue growth of cloud-based accounting companies will also see a rise of nearly 15%.
2. Remote Work Setup and Offshore Staffing
Forbes highlighted that even before the attack of CoVid-19, nearly 3.4% of the American population was working remotely. On computing the number, the number stood out to be around 4.7 million. As per the current statistics shared by GetApp, the number has increased drastically to 40%, calculated on a weekly basis.
Where a 2% accountant unemployment rate is highlighted by the US Bureau of Labor Statistics (BLS) Unemployment Rates, top accounting enterprises are finding it difficult to employ talented accountants. Moreover, accounting leaders are constantly adapting to the changes to bring in more profit to their firms, and the remote work setting has emerged as a rescuer in the current tough times.
Most of us, who belong to the accounting industry, will agree that embracing remote working and digitized accounting systems has not only cut down the cost but has optimized the entire process.
Further to this, including offshore staff in remote working settings is also carving the path to the high growth trajectory of many accounting firms. So, as per the predictive analysis, this setup will improve and flourish in the coming times.
3. Advisory Services
The prediction regarding advisory services is quite bright in the current light of events. The hybrid approach by most accounting exerts involves the utility of manual financial inputs with accounting technology. This gives by far the best predictive outcome, highlighting analytics for new solutions.
CPAs, accountants, and financial advisors using this information can decide on data easily and churn out deeper insights for better decision-making.
Even though these accounting trends are surging slowly, it has the potential to alter the workings of the accounting industry to enhance better services with outputs like:
- More accurate strategies
- Growth in profitability ratio
- Improved business intelligence
4. Social Media Utility
Social media has changed the workings of the present-day business structure. Several industries have adopted social media and are using it to:
- Drive website traffic
- Increase sales
- Improve brand awareness
- Reach more niches
- Invite more opportunities
A recent report brought to focus that around 77% of accountants utilize social media platforms for their firms’ branding and marketing strategies. Community forums, blogs, and social media platforms like LinkedIn, Twitter, and Facebook will help businesses in an augmented way to:
- Follow the industry trends
- Monitor their competitors
- Be in touch with the clients
5. Accounting Software Solutions
With the fierce competition ranging over the accounting market, the requirement for accounting software solutions will not go down. In reality, accounting software with more features, friendlier functions, and robust solutions will be the hot picks of major accounting software companies.
The insights from Fortune Business suggested that the period between 2019 and 2024 will be the peak time for accounting software to take over the accounting industry. The predicted CAGR growth rate will also reach a high of around 8.5%.
And the accounting software which is in line to take the front row would be:
- Sage Business Cloud Accounting
6. Investment in Data Analytics
Where Big Data promises exciting opportunities for financial experts and accountants, predictions state even better aspects for data analytics. It can assist your accounting firm to:
- Develop accurate forecasting models
- Track clients progress
- Identify operational inefficiencies
- Collect valuable financial insights
To differentiate service values from rivals and take better decision-making judgments, more businesses will be embracing data analytics in 2023.
For advising businesses on the right strategy, data specialists will be higher in demand. This would be because of two factors:
- Capturing valuable insights
- Interpreting complex datasets
The protocols and regulations for responsible data gain will also see a drastic improvement in 2023.
7. The emergence of X Analytics
A study by Garner highlighted that post the pandemic state, X analytics will evolve in the accounting industry. Here the X will determine the data variable, which will be an umbrella term to different unstructured and structured content like:
- Audio analytics
- Video analytics
- Text analytics
The toughest challenges will be solved using the combined techniques of artificial intelligence and X analytics (graph analysis) to recognize, predict, and plan for financial disasters.
8. Big Data
Financial experts and accountants consider big data to be one of the vital aspects of the accounting industry. Not only does it help them transform important internal data sets into vigorous, secure data analyses, but it also turns those into actionable insights.
The constant shift and evolution in the accounting industry due to big data will push it to become more proactive in nature. In fact, the CPAs, who will take assistance from big data agree to be more focused on a better and advanced level:
- Problem anticipation and quick solution search
- Process analyses
- Planning the work process
- Taking charge and executing based on priority
Well, these 8 Accounting Trends are not just the endpoint of the accounting industry forecast. With so many changes that we all are witnessing in both accounting and other related industries, solutions, ideas, and Accounting Trends will keep on updating. Out of everything that is projected above, we can come to one conclusion – technology is both the present and future and digitalization in the accounting sector is the current necessity.
Author Bio: Rupinder Kaur works as an SEO Analyst with Sagenext and is a passionate writer. She is currently all in work writing about Quickbooks hosting, cloud computing, cloud accounting, software, cybersecurity, technology, and Accounting Trends in accounting and tax.