Top 14 Accounting Trends to Consider for Every Business

1. Adoption of AI and a Hike in Automation

By 2026, about 90% of financial functions will utilize at least one AI-enabled technology solution.

As a young professional, you need to understand that manual processes are no longer necessary. AI and machine learning are key replacements for manual processes, and these technologies have pushed businesses into a better working domain.

In accounting, these technologies simplify the data analysis process and client communication by embedding a chatbot. Accountants need to be familiar with AI to perform better in their roles.

2. Blockchain Technology

It is one of the crucial accounting trends. Blockchain technology offers a secure and transparent concept for recording financial information. The same applies to accounting, where data is stored in a secure and transparent environment. Unlike the traditional centralized approach, this technology offers a decentralized recording of transactions.

As a result, blockchain technology enables professionals to experience real-time data auditing while reducing fraud. Additionally, due to real-time tracking, it cut down the cost and time investment, which are often high in manual auditing.

3. Agile Accounting

It is crucial to adapt new notions over time to stay on the right track. Similarly, accountants are now shifting towards agile accounting (which aligns with the principles of agile methodology), which improves flexibility and effectively manages risk. Additionally, it brings transparency in financial reporting and collaboration. Accountants can detect cost inefficiencies and improve overall financial management in the business world.

4. Using Cloud Technology in Accounting

Cloud technology enhances collaboration and data access by providing one centralized system. It simplifies financial data access for firms, and clients can access financial data regardless of location and time. The other cherry on the cake is its easy integration.

Cloud-based accounting solutions can easily integrate with a CRM, Point of Sale (POS), or human resources information system (HRIS).

Cloud-based accounting systems always offer a modern and efficient approach to managing finances. They enhance team collaboration and create cost-effective solutions, cutting down on the need for expensive hardware.

5. Cyber Attack and Data Security

A cyber attack is a big headache today, and many professionals become victims. According to the FBI IC3 annual report, 880,418 complaints were registered in the USA in 2023.

Some of the common cyber attacks are data breaches, insider threats, malware infections, and phishing. The best approach to overcoming a cyber attack is to gain enough knowledge about data protection. Accountants should possess a good knowledge of regular software updates, multi-factor authentication, encryption, and access control. Regular training on accessing advanced cybersecurity tools can be the right solution. Professionals can also opt for online courses.

6. Adapting Remote Work

Do you love to work from home? If yes, then you will be happy to know that remote work culture is also on the list of accounting trends.

The mass adoption of remote and hybrid working has brought a new revolution in working styles. The same applies to the accounting industry, where companies allow their accountants to work flexible hours within their comfort zone. The adoption of a remote work culture is positively impacting the industry as it allows companies to retain the best talent for longer periods.

7. Considering Green Accounting

Taking care of our earth and environment is an important activity in which many regions are involved globally. It is also known as green accounting or environmental accounting, as financial reports cover environmental costs and benefits.

Green accounting blends ecological impact into traditional financial accounting methods. To understand it more broadly, suppose a furniture manufacturing company follows green accounting. When it does so, it will consider and include the cost of carbon emissions and investment in eco-friendly technologies.

Green accounting examines how human actions affect ecological systems. It also promotes sustainability by encouraging companies to reduce their carbon footprint.

8. Value-Based Pricing

Accounting professionals are now shifting to a value-based pricing model rather than an hourly billing model. Financial accountants charge flat fees or standard charges for the accounting service they provide to the client.

This model offers mutual benefits to the company and client. Through value-based pricing, the company benefits from true profitability, while the client benefits from greater pricing transparency. So, remember to consider value-based cost in the list of accounting trends.

9. Forensic Accountants

A forensic accountant is a specialized accounting professional who deals with and investigates financial crimes, including money laundering, fraud, and other financial disputes. They present financial evidence after properly analyzing and interpreting data. Forensic accountants play a vital role in legal matters and contribute value to legal work. This is one of the major accounting industry trends for the upcoming time.

10. Tax Policy Updates

Tax laws change frequently, and new laws are introduced every year. Therefore, accountants must stay updated with the latest tax policy to manage finances. To simplify taxation, professionals can utilize accounting software that auto-calculates taxes and offers the latest tax laws.

11. Data Analytics

Data analytics refers to the utilization of advanced tools for analyzing financial and non-financial data. It refines the accuracy and efficiency of the accounting functions. With data analytics, accountants can improve accuracy, conduct faster audits, and make enhanced decisions through real-time insights.

12. Regulatory Adherence

An accountant’s role is always to be proactive because new policies are always in active mode. Regulatory compliance refers to the practice of complying with government rules and regulations.

Any modification or alterations in these rules refer to regulatory changes, which are always introduced according to the current marketing situation. Thus, finance professionals should always remain updated with these changes for better performance.

13. Accounting Academic Skills

Beyond technology, there are other non-technical accounting trends, and accounting education is one of them.

To become a successful accountant, one needs to be educated and skilled. He or she should also become familiar with emerging technologies like blockchain and cloud computing.

Acquiring professional certifications while passing professional exams, such as the Certified Public Accountant (CPA) exam, adds more value to accounting practice in the USA.

Nowadays, many organizations are investing in upskilling their employees’ knowledge and talent by offering training programs.

14. Strong Financial Planning and Reporting

The demand for accountants who possess strong financial planning and prediction skills is high. Companies need accountants who can better guide them in their financial budgeting, investments, and forecasting. Accurate financial reporting is always valuable in business, so companies will always need accounting experts who provide accurate data.

What Skills Will Accountants Need in the Future?

The accounting profession is all about financial analysis and reporting. Therefore, professionals should always upgrade their skills to manage the bookkeeping work.

As technology and automation dominate the current scenario, accountants must know how to access accounting tools and be well aware of the technology and automation that can simplify the accounting process.

Accounting professionals must stay updated on the latest tax legislation, be well-versed in tax regulations and digital tax frameworks, and be familiar with automatic tax filing and managing taxes. Familiarity with these skills will add extra points to good skills.

As environmental protection awareness is at its peak, accountants must add sustainability accounting to their workflow. They need to develop proficiency in the reporting standards of environmental, social, and governance (ESG). Additionally, the Sustainability Accounting Standards Board (SASB) and Global Reporting Initiative (GRI) should also be considered.

Good forecasting talent is another factor that will matter for accountants. The professionals must be skilled enough to perform auditing and forecasting smartly, aligning with current industrial trends in accounting.

Furthermore, communication skills, analytical thinking, problem-solving, and time management will also be required to focus on.

How Can Automation Improve Accounting Workflow?

Automation directly impacts the speed of the accounting process operational flow. By automating the process, professionals can quicken their invoicing, data entry, bank reconciliation, and payroll calculations.

Additionally, it does not allow human errors, and accuracy is always at its level because every task is digitized. With automation tools, accountants can easily create general real-time financial reports for better financial planning.

Automation tools also facilitate the simple and well-organized recording of all data. As accounting firms expand, automation helps businesses meet the increasing demand because it strongly supports scalability.

All-encompassing automation always yields fruitful results for accounting experts. It not only simplifies the accounting process but also impacts its true value.

How AI is Used in Accounting?

Artificial Intelligence (AI) automates accounting tasks and improves accuracy. Additionally, AI helps analyze data instantly.

Through AI, accounting experts can easily overcome the manual errors that are common with human work. Any accounting firm can ease scheduling recurring invoices, better cash flow management, data analysis, project management, and business communication through AI integration.

Overall, Artificial Intelligence is influencing the accounting industry favorably. It can help professionals save time and boost their productivity greatly.

Why Is Accounting Software Important for a New Business?

Accounting software streamlines the overall accounting workflow. As one of the important accounting industry trends, it helps to simplify the bookkeeping process pipeline in the following ways:

Automation

Accounting software helps automate tasks, resulting in greater accuracy while maintaining speed. Automation has a positive impact on repetitive tasks. For instance, a company can automate recurring billing to save time.

Simplify Taxation

Calculating taxes is no doubt a challenging task for most accountants. Their lack of understanding and unfamiliarity with the latest tax compliance make the situation even more difficult. However, accounting software can help professionals manage this well. Some benefits of accounting software include auto-calculating taxes and generating an accurate tax report.

Real-Time Financial Insight

Accountants can gain real-time, data-driven insight into business financial performance and easily identify the correct profit and loss statistics.

Enhanced Compliance and Security

Invoicing software offers security by securely storing sensitive financial data. Users can also retrieve all important data through backup capabilities.

Final Remarks

The future of accountants lies in the above accounting industry trends. By following the above-mentioned accounting technology trends, accounting professionals can easily streamline their work. The power of AI, blockchain, cloud technology, etc., can level up the bookkeeping workflow.

However, you always need to choose the right accounting software, like Moon Invoice, that offers auto-calculation, a simple user interface, and robust features to streamline financial management.

If you want to be an outstanding performer, be adaptable and always open to following the latest trends. Technological advancements and evolving regulatory standards shape the future of accounting.

Frequently Asked Questions