Technology is always shifting its shape to bring innovative features the world has never seen before. It morphs our ideas into reality and transcends our imaginations. Various industries and fields are aware of the changes technology brings. And, even the accountant industry is trying to keep up with such recent technological changes. There are trends that inspire to study accounting. Businesses nowadays understand that there is a need for modernization within their infrastructure regarding accounting practices and processes.
Such a development gives rise to few accounting trends in 2021. Accounting firms and businesses alike are now practicing them to stay relevant in today’s challenging marketplace. We asked over thousands of accounting professionals such as financial advisors and bookkeepers to share with us the leading trends in the accounting field. And this is what we came up with:
Trends That Inspire to Study Accounting in 2021
1. Companies Are Moving Towards Cloud Accounting Solutions
Cloud computing is slowly becoming the norm in 2021. Since its inception, it has become increasingly popular in the last few decades or so. Whether it be the education sector or the automobile industry, it is changing the dynamic of every industry and sector worldwide. It offers various functionalities, which is making it a favorite amongst the accounting industry.
According to Finances Online research, around 67 percent of accountants prefer using cloud-based accounting. In comparison, over 58 percent of businesses have already incorporated it into their infrastructure. Hence, accounting professionals everywhere continue to embrace this modern trend in 2021. The cloud can include services such as Quickbooks, which is available from anywhere at any time. It provides businesses with stable security features far better than traditional measures while also allowing multi-user access. And all of this is possible for a fraction of the cost of conventional techniques.
Some companies hire new accountants with the latest accounting knowledge. In contrast, some companies spend on their existing accountants to join the latest study program. Accountants can opt for masters in accounting online to fill the gap between their experience and the latest accounting trends.
2. Accounting Task Management Through Automation
Put in a coin, select an option, and poof comes out your favorite drink! Yes, you heard it right. We are talking about a vending machine. When automated vending machines came into existence, they took over from traditional retail stores. They gave people a quick and easy option to buy their favorite snacks and drinks from an automated machine. Similarly, when it comes to a business’s accounting task management, automating these tasks will allow firms to reduce human-related mistakes and errors. It also lowers costs and improves productivity.
Bringing in automated task management allows organizations to experience increased levels of efficiency. Tasks such as payroll processing, invoice generation, and auditing are now safe to automate to make the life of a business owner a little less challenging. It allows companies and firms to cut down on money and time spent to complete tasks and better utilize the resources at hand.
3. The Accounting Field Is Embracing Data Analytics
When talking about data analytics and its benefits, the first example we can think of is Walmart. They utilized data analytics to predict their customer’s buying habits before the hurricane struck. Through the analytical results, they stock pilled on beers and strawberry pop tarts. Their stockpile sold off rapidly and allowed them to earn a lot of revenue in return.
Seeing what Walmart did, other companies jumped on the bandwagon and employed data analytics to monitor customer purchasing habits. Also, predict their behavior, and make better, more informed financial decisions as a result. Accounting professionals and firms alike can also make the same better, informed decisions to increase their outreach. Instead of focusing on number crunching and creating a financial statement, they devise strategies that allow their firms to grow. With the help of data analytics, accounting professionals can now detect discrepancies, monitor financial statements, a client’s transactional behavior, and much more.
4. Remote Working Is Taking over the Accounting World
While the recent Covid-19 pandemic forced numerous accounting firms to close up shop or adopt work-from-home practices, there were millions of people already working from home. Known as telecommuting, which started back in the 1970s, it grew over the decades. Letting employees work from their homes allows businesses to experience great productivity, reduced cost investments, and increased employee satisfaction and performance.
The same is the case for the accounting industry as well. Remote working is acting as a boon for accounting firms everywhere. Instead of improving and expanding their office space, these firms can now hire employees worldwide while not incurring additional office costs. They are also widening their client reach as employees can now work any time and cater to various clients from different time zones.
5. Accounting Firms Are Regularly Outsourcing Operations
When running an accounting firm, customer data is not the only thing you will have to manage. You will need to look after workplace performance, manage customer support, do invoicing, recruit employees, and much more. Various software allows you to handle such tasks efficiently. You will have to spend a lot of money purchasing said software and your staff’s training.
Outsourcing such business operations to avoid extra expenses is now a norm in the accounting industry. For example, instead of acquiring new employees yourself, you can hire a recruitment agency. They will do the entire hiring process for you. You only have to tell them the qualifications you require from an employee. They will provide you with the best possible candidates.
Companies can also hire third-party agencies to manage employee payrolls and customer invoices. Outsourcing all organizational and administrative tasks to third-party agencies will allow accounting firms and businesses to focus on core accounting-based activities. After all, what good is an accounting firm if they aren’t master at accounting!
The latest accounting software, cloud accounting, outsourcing business operations, and data analytics are a few top trends in the accounting industry in 2021. They can allow an accounting firm or other business type to make the best use of their resources. So, when you decide to enroll in an accounting degree program, ensure that you keep these trends in the back of your mind. Also, keep in mind that these accounting trends will change day by day, so you have to keep tabs on the latest ones before making your final decision.
Positive Words Research – Trends That Inspire to Study Accounting in 2021