As a business owner, it's important to stay on top of accounting trends and make them work for your organisation. If you don't stay up-to-date you might just find yourself left in the dust whilst your competitors improve their efficiency with the latest and greatest software and practices. Here's an overview of the top accounting trends for 2021 to help you stay one step ahead.
1. Accounting Software Solutions
In recent years, there's been a surge in accounting software solutions. By now, most industries are harnessing the power of the digital world and accountancy is no different. There are more demands than ever for computerised accounting and software companies are working hard to ensure that manual tasks are kept to a minimum. Pens and paper really are things of the past.
2. Cloud-Based Accounting
Everything is in the cloud these days: your photos, your music and even your passwords are stored in the cloud, so why not your accounts, too? Cloud-based accounting is both cost and time effective. In fact, around two thirds of accountants believe that it will prove beneficial to their work.
One big benefit of cloud-based accounting software is that it enables you and your team to access and update your numbers anytime, anywhere and crucially, all at once. Collaboration is easier than ever and there's no need for constant backups and email exchanges. Speaking of backups, cloud based accounting software ensures your data is stored securely with military-grade encryption that certainly beats a USB stick.
3. Automated Accounting
Automated accounting processes save time, money and, perhaps most crucially, error. More companies than ever are investing in automated accounting processes because it can prove very lucrative for businesses. Beyond that, it also increases companies' ability to make data-driven decisions, and allows them to do so faster than ever before.
However, there is a downside to automated accounting. Like any process that relies on technology, it comes with a cybersecurity risk that must be properly assessed and continuously monitored.
4. Work-Life Balance
Another benefit of the surge in automated processes and cloud-based software is that more accountants than ever are able to work from anywhere, at any time, promoting a greater work-life balance. These developments also save a lot of time in email exchanges and backups, leaving accountants with more moments to enjoy.
5. Accountants Are Becoming Advisors
There's always been some overlap between chartered accountants and financial advisors but now the accounting industry is increasingly focusing on data analytics, and so many accountants are shifting into more advisory roles. Developments in accounting technology allow accountants to offer more accurate insights and provide their clients with valuable advice. In fact, harnessing the power of technology to provide business advice is one way accountants can ensure they're not eventually replaced by machines.
6. Social Media
Accountancy and social media may seem like strange bedfellows, but networking is important to any business. The coronavirus pandemic meant that even the staunchest of luddites had to resort to platforms such as Facebook and LinkedIn in order to interact with their peers and prospective clients. There's no denying that social media platforms allow accounting firms to build a brand, drive more traffic to their website and make new connections. These channels are a powerful marketing tool for any business and accountancy is no exception, so it's high time for the industry to catch up.
As you can see, advancements in technology are driving a lot of change in the world of accounting - mostly for the better. This means you can look forward to more effective and efficient accountancy, as well as the ability to make smart business decisions based on optimised financial data. Here's to 2021!