Accounting, like many other industries, is dependent on technological advancements to maintain a competitive edge. The efficiency and precision of accounting and associated duties have greatly benefited from the advent of digital technology and the widespread availability of specialist software. Consequently, accountants will have more time to devote to strategic planning and new product development, both of which will benefit their employers and their clients. The advent of cloud computing, the rise of automation, and other technological advances are often cited as the forces that will shape the future of accounting in 2022 and beyond.
In this article, we will discuss some of the accounting trends accountants should expect in 2023.
1. Automation In Accounting
Automating mundane accounting tasks is now the standard, and many in the industry predict this trend may accelerate in the coming years. Compiling massive amounts of data is made quicker and more precise by using automated methods, which also assist reduce the likelihood of human error. Human participation is yet essential for this operation as it means that your team is doing what it has to do to make the process work properly. Also, automation in accountants can help leverage the knowledge of finances to work in collaboration with technological advancements to produce impressive results.
2. Cloud Computing In Accounting
Accounting software that runs in the cloud stores data on a remote server rather than a local computer. Multiple users, such as those in an organization or an accountant and their customers, can access the same file at any time. They are also available via SaaS apps like Dropbox that can be accessed from any web browser on any device. Cloud computing in accounting might bring a number of benefits to the accounting sector such as increased safety from cyberattacks, routine software upgrades, and better teamwork and delegation.
3. Non-Fungible Tokens
Blockchain-based assets that can’t be exchanged for other tokens are called non-fungible tokens (NFTs). Instead of monetary value, they stand in for intangible goods like works of art, media, and digital content. To own a unique
digital or physical item, an NFT can be thought of as a digital certificate of ownership that is also financial security. Every NFT is a piece of information kept in a distributed database (the blockchain) and available for purchase or trade. Although the Internal Revenue Service (IRS) has not provided explicit NFT tax treatment instructions as of yet, several professionals believe that the NFTs will be required to be reported and taxed as intangible assets in the near future. Accounting companies will need to stay alert to such accounting trends.
4. Third-Party Transactions
A third-party transaction is a sale or business deal that involves a person other than the buyer or seller. It’s not uncommon for these third parties to play a role similar to that of a middleman in a transaction, speeding up the process of selling or buying a product. Customers gain from third-party involvement because it provides a level of trust that isn’t often present with the smaller, individual businesses they’re trying to support. Accountants expect to profit from third parties as even the smallest enterprises will be able to generate data on sales, profits, and revenues that would have previously been out of reach.
5. Data Analytics In Accounting
A key development in accounting in facilitating strategic advancement is the emphasis on data analytics. Data analytics allows the breakdown of great amounts of financial data into meaningful information to know more about how one’s business is performing. Data also helps in understanding the behavior of the customer, emerging threats and market trends that may flourish in the sector. This accounting trend may also help accountants to focus more on important tasks like audits, consulting, and risk management.
6. Digital Media
Today’s accounting professionals cannot succeed without a strong internet presence. Social media marketing help boost businesses by about 78 per cent. Video content and live video streaming have also emerged as potent instruments for reaching and persuading specific demographics. Video marketing that includes how-to guides on YouTube or Live Q&A sessions, could be a great method for accounting companies to show off their knowledge and attract a wider audience online.
A solid education is essential to achieving any level of success in the world of accounting. Keeping up with the most recent accounting trends, along with accounting and finance certifications can help one succeed in the sector well.