Historically, accounting and finance have been slow to adapt to changes and trends. Bookkeepers prefer following the conventional way to maintain journal entries, whereas accountants like everything on excel. Hence, none of us expect to see a fully remote work environment in the accounting industry, but technological advancements are changing the dynamics.
The digital revolution shot forward in the wake of Covid-19 has pushed companies towards automation. May it be operational work or financial forecasts – everything is happening digitally. Likewise, organizations have started to deploy software and applications to automate the record-keeping process. It would reduce the workload from employees, allowing them to spend more time on meaningful tasks. Similarly, the accounting industry is also preparing for digital payment solutions and digital currency. After all, crypto has become the new payment mode.
If you wish to keep up with these market trends, have a look below. Here we are highlighting five ways how the accounting profession is transforming in 2022.
- Digital Skills Gap
In 2022, artificial intelligence is likely to change the face of accounting operations. It will make the accounting flows more efficient and accurate, reducing errors. In addition, it will assist professionals with real-time decision-making based on data-driven insights. However, most accountants are unfamiliar with AI applications and software that create a digital skills gap. They don’t know their way around cloud technologies or digital payments that will significantly impact the future of accounting.
Thus, if you’re planning on becoming an accountant, you must find ways to bridge the digital skills gap. Besides your bachelor’s and master’s degrees, you have to learn about the role of AI in the accounting industry. Similarly, become well-acquainted with cloud technologies to help organizations automate their accounting processes. Moreover, managers should also identify gaps and address them by training accountants. It will allow them to stay up to date with the latest developments.
- Growth of Auditors
Lately, environmental and sustainability issues have become fundamental to an organization’s survival. In addition to being accountable for finances, companies are answerable for the sustainability of their operations. They must ensure compliance by keeping the business’s long-term and short-term prospects aligned with environmental issues. After all, consumer demand or ecological sustainability is likely to outstrip government-mandated action. These current circumstances offer a massive opportunity for the accounting industry. Let us explain how?
Managing sustainability requires risk reporting and assessment. Here, the role of auditors comes into play. They would oversee how companies are handling environmental concerns and whether they are moving towards sustainable working models. In addition, they will address governance (ESG) issues to reduce greenhouse emissions. Organizations complying with given standards also attract global investors. As these regulations are under development, it provides a widespread growth opportunity for auditors. They can spread awareness while offering their services to the companies.
- Demand for Cryptocurrency Services
Truthfully, cryptocurrency has become a digital asset of the modern era. People use it for remittances, transferring money internationally, and purchasing illicit goods. At the same time, trading forums are also experiencing a boom. Investors and SME businesses are buying and selling crypto, earning substantial returns but with an unprecedented amount of risk. Although crypto is still in its infancy, it has untapped potential. Hence, it is time that the accounting industry acknowledges and supports this trend.
Before you jump on this bandwagon, understand the foundation of crypto–blockchain technology. It is a system that tracks crypto transactions using a cloud-based server. In simple words, it is a decentralized ledger that maintains all transactions relating to cryptocurrency. Therefore, you have to understand how blockchain works and align it with your business model.
As the demand for crypto services emerges, businesses can add them as a payment option on their webpage. It would allow users to make payments by using their digital assets. In addition to promoting convenience for customers, it can become your company’s unique selling proposition. Besides this, accountants can become crypto experts and seize this significant market opportunity.
- Advisory Services
Innovators will introduce a hybrid approach in the coming few months, combining accounting technology and financial advisor in one forum. It would ultimately allow investors to buy and sell stocks on mobile applications with the help of an advisor. The AI-enabled advisor would analyze market trends, based on which, it would give recommendations. For instance, if there is a sharp rise in oil prices in the international markets, the advisor would suggest you purchase the shares.
Similarly, whenever the share prices increase, you will get a recommendation to sell your stocks. Besides dividends, it will allow investors to earn a substantial premium on the shares. These innovative suggestions will ensure investors make pragmatic decisions and earn lucrative profits. However, decision-making will always fall in the hands of human professionals and experts. An accountant or analyst will help investors prepare a diverse portfolio after analyzing the risks and returns. In some cases, accountants will be managing the portfolio, allowing them to make investment decisions with the help of an advisor.
- Leveraging Cloud & Automation
Are you familiar with cloud servers? Through cloud technology, accounting firms can centralize data management. In turn, it reduces waste, decreases costs, and also improves collaboration. Instead of sharing files on email, all employees can access the cloud server. It makes a cohesive data-sphere that is easier to share, access, and analyze, increasing accountants’ productivity. If you haven’t already, find cloud service providers in your region and start storing your data on the cloud.
Furthermore, automation can also reduce costs and enhance productivity by automating monotonous tasks. For instance, if accountants record all entries manually, you can automate the process by connecting software to bank accounts. It would debit all outflows and credit inflows, maintaining a ledger free from errors. As a result, accountants can focus on strategic tasks that require creativity and collaboration.
Final Thoughts
The current accounting trends have made it clear that digitization is the future of accounting trends. However, that doesn’t mean accountants will lose their jobs. In reality, technology will support accountants instead of replacing them. Accountants will work on tech-savvy applications and software, eliminating redundant and monotonous tasks. In addition, advanced solutions brought by recent developments in the accounting sector, such as AI and cloud computing, will reduce errors.
