As new technologies surface and the old ways of doing things become obsolete—like every other industry, the accounting sector is also evolving and constantly changing over time. This evolution is driven by many aspects, including client demands, generational change and, most definitely, the COVID-19 pandemic that started in 2021 and served as a major catalyst in amplifying many accounting and taxation trends that had already begun to happen. Keep reading to learn more about the different emerging trends that every accounting professional or owner of an SME accounting firm should know and pay attention to.
What’s In and New: Top Accounting and Taxation Trends of Today
Remote Workforce and Online Collaboration
It’s evident that the traditional workforce is changing. Most employees in this day and age are already working remotely and are no longer bound to a physical office. Thus, to remain competitive in this digital landscape and stay ahead of the curve, you must embrace remote working and make it doable and successful as much as possible. To do so, it’s important that you have the right technologically driven solutions up your sleeve and use them to your advantage.
For instance, virtual communication and collaboration tools like Zoom or Google Meet can help you communicate conveniently with your team members and manage your clients from anywhere through a desktop browser, laptop or mobile and an internet connection.
AI and RPA
Gone are the days when you needed to manually input data into a spreadsheet. With Artificial Intelligence (AI) and Robotic Process Automation (RPA) in place, you can now perform your accounting duties quickly and more accurately. This technology enables you to automate the repetitive and tedious tasks involved in accounting so you can work with speed, reduce manual errors and increase your productivity levels.
Likewise, AI or RPA can also help in analysing and preparing financial reports, managing customer relationships, and even identifying fraudulent transactions so you can free up your time to focus and take on more advisory responsibilities.
Rise of Cloud-Based Accounting Software
Cloud-based accounting software is undoubtedly on the rise as more and more business owners and accounting firms are switching to the cloud. For good reasons, cloud-based solutions like Moolahmore offer an array of benefits. Not only does cloud-based software enable you to access your data from any internet-enabled device, but it can also keep your records and accounting information safe in one secure location. In addition to that, it’s easy to share files and collaborate with others from your team through cloud-based software. It’s user-friendly and convenient indeed.
Altogether, this accounting trend saves both time and costs and enhances accessibility and security.
The Blockchain Revolution
Blockchain is a distributed ledger that allows for secure, transparent and tamper-proof transactions. It has many potential uses in accounting and taxation, including tracking assets and liabilities, issuing and monitoring shares, recording transactions and reducing fraud and tax evasion. It’s crucial that you understand blockchain technology and how it will affect the accounting industry moving forward.
Understanding Big Data
Big data refers to the massive volume of data that organisations collect from a wide variety of sources. That said, if you can harness the power of big data and understand data analytics thoroughly, you can provide your clients with valuable insights and actionable solutions or recommendations.
Cyber threats and data breaches are at a bigger risk than ever as the world increasingly relies on digital technologies to store and share data. That’s why as an accounting professional, it’s critical to stay vigilant and have strong data security strategies in place. From using cloud-based software to secure online data storage, implementing firewalls and two-factor password authentication to encrypting information and regularly backing up data—taking these precautions will guarantee that your clients’ confidential information is protected against theft and cyberattacks, which can result in costly financial losses.
The Bottom Line
In hindsight, you can provide better service for your clients and make them happy if you know and understand the latest news and developments in your industry. So be sure to keep an eye on these emerging trends so you can maintain a strong foothold in the market and help your accounting career grow long-term!
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