Accounting has been a primary part of business operations throughout history, but it has significantly evolved.
Accounting involves keeping track of your annual financial transactions and records so that businesses can determine their profitability. Accounting industry trends can be divided into three main areas: general ledger accounting, managerial accounting, and financial accounting.
Use of the Internet to provide services
It is important to note that the use of the Internet to provide services has been around for decades. But there has been rapid growth in this sector lately. The reason for this is simple: clients benefit because they can access your services anytime and from anywhere. And you as an accountant benefit because it costs less than traditional methods. This trend will continue in the future as more people adopt smartphones and other devices that allow them to access their accounts anytime and anywhere.
Use of Cloud Services (SAAS)
Cloud computing is an Internet-based hosting model that allows users to store, access and manipulate files from any location or device with an Internet connection.
Benefits include reduced cost and risk, scalability, portability and geographic availability. The major differentiators between cloud services are the degree to which they are provided remotely versus on-premise, as well as whether they provide only software as a service (SaaS), infrastructure as a service (IaaS) or both in one package.
Outsourcing of non-core accounting functions
Using accounting outsourcing to reduce costs, time spent on non-core functions, and risk is a growing trend. You can accomplish it by using one of the following methods:
- Outsourcing to an overseas firm to reduce labor costs (as well as other overhead costs). For example, many large U.S.-based companies have moved their IT operations abroad because doing so allows them to pay workers less than they would pay native U.S. employees while still maintaining the same or better quality of service. The same holds true for accounting outsourcing. If this is what you’re looking for, you can also check out middle office outsourcing.
- Offshoring your data entry work—for example, scanning receipts into electronic format—will allow you and your staff more time for higher-value activities like financial analysis and strategy development (core competencies).
The new regulation is a significant trend to watch in the accounting industry. Regulation can impact all areas of accounting—from new rules that affect small businesses to changes in how financial statements are presented and reported. The impact of regulations on the industry may be subtle or drastic. Still, it will always affect how you operate as a business owner and prepare your financial statements.
Adaptation to new technologies (blockchain/cryptocurrencies)
The accounting world has slowly adapted to new technologies, but the blockchain is changing that. A blockchain is a form of digital currency that uses cryptography for security and verification purposes. It’s also referred to as a decentralized ledger because it simultaneously provides multiple parties access to the same information.
The world is changing quickly, and experts at Intuit believe, “We’re building and expanding a virtual marketplace of expert services where every consumer and small business can access the financial professionals who can best address their needs.” And it could help you with that. So it’s crucial to stay on top of these new trends so your company can continue to succeed and grow, but also so you don’t get left behind!