While it is undeniable that accounting is one of the key functions in any enterprise, in order to use it properly, one must understand it first. Now, we live in a digital world, which means that change sometimes happens overnight. This is why being able to track trends is of such importance and might even provide you with a significant competitive edge.
By understanding some of the latest accounting trends, you’ll have a much easier time keeping your organization’s finances in check. Here’s what you need to know about some of the most important accounting trends in 2022.
What is Cloud Accounting?
The reason why cloud accounting is so interesting is that it merely improves on concepts that are here for centuries. Everyone knows that cloud accounting allows for easier collaboration of multiple parties on the same project. Due to this, with the use of cloud accounting, double-entry bookkeeping becomes a lot easier.
Another thing that clouds accounting makes easier is keeping track of the money coming into a company and out of it, in real-time. This is especially useful once you decide to integrate the accounting platform with your payment gateways. This simple integration is another huge plus that you should never discard.
Access to your accounts regardless of your location or the device that you use is another huge plus. For those who run their business while on the go, this makes it so much easier to plan future spending, make big strategic decisions, and even just examine your cash positions.
In the end, it’s also worth pointing out that when deciding to go with cloud software, it’s far easier to keep everything up to date. Updates are automatic and this means that your security is up to date, as well. When working with finances, this is always a top priority.
According to the latest market trends, outsourcing accounting services is going to be an even more popular trend. The first reason behind this is to cut down on costs. By outsourcing, you’re not paying the wages and costs of having a full-time accountant on the retainer. Instead, you’re just paying for your accounting services.
Second, as a small business without the capability to hire a reliable controller (like the CFO), you’re likely to become a victim of fraud. By outsourcing, you’re delegating this task as well, to the company that has the capacity to actually handle this.
One of the main reasons why people outsource, in general, is due to the fact that they can focus on their core tasks and leave this specialized task to a professional. This holds true for all specialized tasks (like HR, IT, etc.). In other words, it’s about the optimal use of your resources and better use of your time.
Most important of all, outsourcing is highly scalable. As your business grows, your accounting services will become more complex and more elaborate. Now, this is something that will happen to all your business processes. If you choose to outsource your accounting, this simply becomes someone else’s task.
The main thing that blockchain brings to the table is definitely the reliability of your ledger in the virtual format. If we’re completely honest, this was always one of the bottlenecks of your accounting operations, as well as a major concern for entrepreneurs still on the fence. With the continued investment into the blockchain, it will soon be even easier to integrate it into a small enterprise.
The fact that there’s much greater oversight over these processes means that there are fewer instances of fraudulent activity. Previously, we talked about the importance of having a supervisor in order to reduce this type of behavior. Well, a similar effect can be achieved through blockchain.
Previously, we’ve already talked about the double-entry system and it’s important to mention that with blockchain, digital fingerprints are easier to track. As a result, it’s far easier for the client to create and maintain a high level of trust with their accountant.
Like any new technology, the higher level of implementation of blockchain into digital accounting processes is meant to save time. Data is processed, verified, as well as linked to corresponding data points far more quickly and accurately. This is particularly evident when it comes to tasks such as auditing.
What different accountants are there?
When it comes to the job description itself, accountants are looking for different things in 2022 than they did in previous years or decades. For instance, flexible work schedules, as well as hybrid work environments (working part of the week from home) are a top priority for both employer and the accountant in question.
Second, the availability of self-improvement instances and online courses allows for a much higher level of specialization than ever before. Even those who aren’t obsessed with certificates now have multiple instances of micro-learning available, as well as a myriad of learning materials to dip into. All of this results in a much higher level of service.
Higher competitiveness is also something to keep track of. Accountants are getting more qualified and the need for quality accountants is higher than ever before. This also means that finding competent and qualified assistance is easier than ever before. This also means that the proper corporate development and corporate learning process are paramount when it comes to talent retention.
Also, keep in mind that your ability to integrate your accounting and IT makes all the difference in the world. This means that digital onboarding may require your special attention. The more effort you invest in this, the easier the integration will be.
Lastly, it’s important to mention that general financial advice no longer has the same value as before. Instead, business entities are more likely to look for specialized advice. This makes accounting agencies and accountants, in general, focus on niches.
Second, it’s important to mention that the field of accounting is more competitive than it ever was. This means that a business looking to outsource an accounting service might have a pretty easy job at finding someone capable of providing them with extra value. This comes in a form of a better cost-to-value ratio, additional services, or even a superior relationship with the client.
This customer-centric approach puts an extra emphasis on the interpersonal relationships between the agency and the client. Communication, company-wide customer relationship management (CRM), and even outreach are major points of interest in this field.
The end result should always be an accounting system that is tailored to the specific client. Customizability, intuitiveness, and availability of accounting services are some of the key points that are shaping the accounting industry of the future.
The role of an accountant is sometimes hard to describe, seeing as how it usually lingers somewhere between advisory and administrative nature. With the increased presence (and significance) of technology, this line gets even blurrier. The most sensible course of action is to outsource your accounting since this is the course of action used even by organizations that can afford to start an in-house accounting department. It’s simply the best cost-to-value ratio. Lastly, keep in mind that expediency and reliability are the two key factors that will determine success in this field. Both of these factors are heavily dependent on technology.