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Given that the consequences of the pandemic are still relevant, businesses across industries are looking at different ways to ensure sustainability over prolonged periods of economic uncertainty. The year 2020 saw businesses adapting to technology at an unprecedented pace across diverse industries. Accounting as a function has been gradually adapted to technological advances over the past few years. According to reports, 83 percent of accountants agree that investing in digitalization is necessary to keep up with the market. This fact is separate from the adoption of technology, which has helped businesses operate remotely and remain sustainable.
As we work through 2022, here are a few accounting trends to help your business grow faster and improve your business’s profitability.
Automation for accounting processes has been gaining ground steadily; it helps reduce the workload for time-consuming and attention-intensive tasks while ensuring higher accuracy and reduction of errors.
Additionally, increasing labor costs (29%) represented one of the biggest concerns for accounting firms in 2020. Therefore, the need to shift certain functions to automated processes makes sense. This situation also aligns with the high furlough rate that occurred as a result of the pandemic. Together, these factors make a stronger case for accounting automation.
It also helps to keep in mind that automation of accounting processes does not make accounting professionals redundant. Instead, automation takes over high-volume, time-consuming work from human capital. This step ensures that trained and skilled accounting professionals can shift their focus from resolving accounting and bookkeeping problems to actual business management.
Reports reveal that accountants are either already training for or considering training in other areas, including client management and business advisory services (63% respondents) or business management (59%).
More businesses realize the benefits of outsourcing as economic uncertainties continue to loom. The numerous benefits of outsourcing “detailed attention” intensive functions such as accounting and bookkeeping include:
From on-site operations to cloud-based accounting, the shift has been gradual and noticeable. Reports say that 67 percent of accountants feel cloud technology improves client interactions and service offerings. Given the multiple benefits of cloud-based accounting, businesses can add value to deliverables without increasing costs and expenses. Here are some key considerations why shifting to cloud accounting makes sense for accounting practices:
When it comes to cloud accounting, electronic storage, and secure backups, all of these require a robust infrastructure. These requirements can prove to be expensive for a business just starting out. Outsourcing accounting and bookkeeping functions or partnering with professionals can help ensure your practice aligns with industry norms. Given the proven systems professionals possess, partnering with them allows businesses to access resources otherwise inaccessible to them. Because cloud accounting is technology-based, it also needs expert deployment. For professionals, this is easier because they have resources ready to hit the ground running.
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Trends Influencing How Small to Mid-Sized Business Accounting Departments Operate.