Accounting Trends 2020
The demand for meaningful, insightful and accessible reporting is expected of the accountant more and more every year. The profession has become increasingly competitive, and the need to understand future accounting trends and the impact of digitalization is on the rise.
Sophistication & Automation:
The process of manual data entry is slowly diminishing as automation comes to the forefront, providing savings on business production hours. Utility tools that offer automated security processes, document management, dashboard reporting and remote access are all realistic features in accounting solutions. These tools allow for today's finance professionals to spot inefficiencies within the organization and respond quickly.
Big Data & Analytics
The technology used for data entry and record-keeping becomes more robust and agile; business owners globally want their accounting professionals to provide higher value with their predictive analysis and insight, which will be of significant importance moving forward.
The so-called ‘big data’ provides business leaders with volumes of information, as well as analytical insights that can improve decision-making and improve financial health. The shift from how data is used and processed has developed gradually into a role that uses advanced analytics for assistance with regards to crucial future decisions.
Data analytics is vital on the auditing side of the review and decision-making, especially for mid-market and enterprise organizations. The latest accounting packages organize the data in such a way to make it easier to interpret and doubles up as a decision-making tool by management.
We can certainly direct the application to organize and analyze data in such a way to be used to make crucial decisions. Data Analytics is the way ahead, and it’s becoming a huge factor, as a convenient and popular way to analyze accounting data.
Capitalizing The Power Of Cloud
By the year 2026, accounting software for the global market will reach $11.8 billion, as per data compiled by Accounting Today. Digital is the go-to medium. Cloud accounting and software-as-a-service (SaaS) applications with the ability to access data from anywhere are leading this trend.
Cloud Accounting for Small to Mid-size Businesses:
The power of the internet allows for sharing of real-time data. An enormous amount of data gets accessed at a fraction of cost with cloud-based services. As per the "Accounting Age," it is estimated that by 2020, 78% of small businesses will rely on cloud technology, and adoption of cloud solutions will increase moving forward.
It appears for the time being, large-scale firms with lots of data will save by keeping their computing on-premises. Maintaining data on-premises will ultimately change as cloud becomes more localized and competitive.
Outsourcing specific accounting tasks, like EFT (Electronic Funds Transfer), cuts down on the cost, lowering the chances of malpractice or frauds, and most importantly, provides an automated, reliable process that cuts down on unnecessary manual tasks.
A significant trend for organizations is to enhance the fraud monitoring process. An important factor for those businesses who accept credit card payments is the security of your client's payment information. Companies must be PCI-DSS Compliant and ensure their client's credit card details are vaulted and transactions encrypted and tokenized. Offering protection against painful fraudulent activities affects not only the client but also your business merchant license eligibility. The digital workflow or a streamlined process filters out or deletes duplicate payments. Highly secure management tools can be used to process payments and decrease the risk of fraud.
A significant predictor of revenue growth and profitability gets done through customer intelligence, as per data published by PWC’s Financial Services Technology 2020 and Beyond: Embracing disruption. Utilizing technology to scan through the available data will help to provide the right offer at the right time. This, in turn, will help you to develop deeper relationships with your customers and to make better-informed decisions.
CRMs (Customer relationship management systems) helps you to gather all the data to improve your revenue and competitiveness in the industry with the help of the data collected.
Transformation will Inherit the Universe:
Financial professionals and accountants have to embrace technology to future-proof their careers. Administrative tasks have become automated; forward-thinking accountants offer value to the organization through a more consultative role.
For the accountants who have embraced technology, they seize the opportunity with actionable insights and accurate data to make strategic decisions.