Technology has stories to tell. The word is synonymous with development and why not, the modern business landscape has witnessed a great change in the way we do business, all thanks to the rapid transformation that has helped automate manual accounting tasks to a great extent.
Businesses have started to operate more efficiently and effectively. And this is where the latest accounting trends in 2020 will revolve around.
With the introduction of SaaS, the industry has witnessed an addition of cloud-based subscriptions. And more of such technological disruptions are on their way for accounting. Let’s discuss the top trends that accounting will see this year- 2020.
- Automation in accounting tasks
- Rise of accounting software solutions
- Cloud-based accounting
- Blockchain intrusion
- Increased focus on data analytics
Automation in accounting tasks
As discussed, automation has become a key trend in the industry. An ever-increasing number of companies are starting to invest more and more in implementing automated solutions.
With this intrusion of automation, the demand for internal auditors will also rise as the process of automation relies heavily on computers and there has to be someone taking care of the data inaccuracies.
According to a study, over 50% of those in the accounting sector believe that the development of automation will be rapid and will allow them to utilize data for process optimization purposes as well.
Automation in the accounting methods will also seek to guide businesses in arriving at data-driven decisions quickly while empowering in-house accountants at the same time.
Rise of accounting software solutions
Adopting technology-driven solutions will be another trend that industries will follow this year. With a growth in demand for computerized accounting, industries will be required to implement robust solutions. This will give rise to the growth of accounting software solutions.
According to a report, there is a strong demand for solutions that would help manage spreadsheets and have an understanding of tax management strategies. It also shows that the market will grow at an annual growth rate of 8.5% between 2020 and 2024, thus driving the growth of the accounting software development companies across the world.
The cloud is the modern buzz word in accounting. With the help of cloud-based accounting systems, companies can gain and grant access to their information anytime, from anywhere. Moving their system to the cloud has also enabled businesses to save valuable time and plot efficient workflows.
Believing the statistics, more than 60% of accountants believe that cloud-technology has made their work easier and processes seamless. As the year 2020 progresses, the use of these accounting methods for effective and comprehensive financial reporting and analytics will be on the rise.
Blockchain is making some serious noise in the modern business environment, and the accounting industry needs to get a gist of it as well. This latest addition to the world of technology has started to disrupt conventional methods of cost reduction by introducing innovative insights in improving accounting methods. Besides, this has also helped businesses gain a clear view of their obligations and available resources.
According to data published by a statistics website, blockchain-based projects have seen exponential growth over the past few years and this year also, it is expected to follow the same pattern.
Increased focus on data analytics
The evolution in accounting methods has forced accountants to take on roles of advisors to conduct data analysis. Data analysis helps businesses come up with insights to target opportunities for process improvements and increase efficiency for better risk-mitigation capabilities.
Though data analytics in accounting is not new, it is powerful than ever, presenting financial performance from a new perspective for better actionable insights. This year, accounting firms will be leveraging data analytics in taxation, consulting and auditing as well.
The final word
Though there is a lot to expect, the above are some of the most anticipated trends that accounting will witness this year.
Stay tuned for more updates.