What do you think? How are the current trends in the accounting industry changing?
Well, in our opinion, the pace of change is accelerating, owing largely to the lightning-fast advancements in technology. The pandemic has accelerated that adoption in many ways. For example, more people are using cloud-based accounting software, and there is a shift toward automation and artificial intelligence.
After researching some recent approaches adopted by accountants, we have identified some financial and accounting industry trends that have emerged in 2022. What exactly are the accounting trends? They are changes and reactions to changing landscapes, technology, and other market forces that shape the accounting profession as it is today.
What's new in the world of accounting? Some of the most exciting developments in the accounting industry are ever-evolving technology and a trend toward automation of repetitive accounting tasks. Approval workflows, bank reconciliation, journal entries, inter-company consolidation, revenue recognition, lease accounting, and depreciation are among the processes being automated.
Let’s discuss the trends individually.
• AI & Automation: According to accounting experts, one of the most booming and effective areas that have increased in the use are budgeting, forecasting, and planning software, as well as data analytics, data entry automation, and visualization tools. Accounting and finance functions are becoming much more analytical, and technology has aided in moving the accounting and finance departments from reactive to proactive and analytical.
One of the most emerging accounting trends, like AI in accounting, focuses on the gradual elimination of the need for manual data entry, resulting in significant time savings for businesses. Experts say, ‘Artificial Intelligence is one of the components that will lead the automation era.’ When accounting firms invest in automation and artificial intelligence, they are clearly looking to streamline their processes and increase productivity.
Suvit is a cutting-edge accounting automation software that works on Artificial Intelligence which makes it powerful enough to scan a 25-line bank statement in Tally into 50 seconds with 100% correctness. Such software reduces manual work, thus accelerating the accounting process more than ever before.
• Cloud-based Accounting Software: One of the most recent accounting assignment trends is to harness the power of the internet in order to increase collaboration and share information in real-time. This is only possible if all of the data in-house is available online. Cloud-based data has begun to alter the way small-scale data operations are conducted.
Because of cloud computing, service providers will be able to access massive amounts of data from virtually anywhere at a fraction of the cost. For now, cloud technology is being used by large corporations, but it won't be long before small and medium-sized businesses begin to use it. This will make them more localized and competitive. Adapting the same, modern accounting software like Suvit is also providing a cloud for data sharing and accessing it from anywhere, anytime!
• Technological Innovations: Another contributing factor is the evolution of technology, which has reshaped the business world, industries, systems, and processes, automating the majority of manual tasks. In accounting, this massive shift has increased business productivity while also making them more efficient and effective.
Accountants and other financial professionals no longer need to enter new data, update tax information, or run reports in an office. It is possible to manage a company's finances from anywhere using the right software solution and related mobile applications.
Modern accounting and tax software innovations enable the use of correlated data collected throughout the year to ensure the accuracy of all tax forms and payments. Real-time data updates help to avoid errors caused by out-of-date reports and missed entries.
• Accounting APIs: Accounting APIs are Application Programming Interfaces that allow developers to access accounting software and create or integrate applications with it. We consider this is a relatively new trend in finance, with banking services evolving at a tremendous speed over the last decade. As a result, many businesses have begun to use online banking, and their reliance on physical banks has decreased. Banking services have become more accessible, with integrated banking technology allowing people to use them on their mobile phones.
Accounting and banking have merged, and many modern accounting solutions now include bank integration. As a result, account reconciliation is quicker and easier. Don’t you think this is the best thing about banking?
Automation and AI in accounting have had an impact on workflow rules, bank transactions, recurring invoices, payment reminders, and billing processes, to name a few. AI is data-driven, and it is primarily concerned with improving the intelligence of accounting automation software. Machine learning algorithms are used to create the entire Artificial Intelligence model. The main advantage of incorporating AI into your accounting system is that it reduces errors and achieves near-perfect accuracy.
While many accounting functions can be automated, there is a lack of understanding of the technologies as well as a lack of resources to put them in place. Those who take the chance, however, reap the rewards. So, if you want to take a step forward in your productivity, opting for Accounting Automation or Data Entry Automation tools is what Accountants should drive attention towards.