If there is one thing that 2020 taught the world, that would be living through the uncertainty. The world is now even more prepared for the unexpected than before. The ongoing COVID-19 pandemic took a toll on all sectors around the globe. Be it healthcare, education, or business, and the world saw numerous and remarkable changes. As the in-person trades came to a complete halt, the financial projections flatlined, and many companies were on the brink of collapse. However, it was also a dawn of prominent advancement and proliferation opportunities for businesses around the globe. Those businesses who efficiently embraced the technology took maximum advantage to stay ahead in the competition.
The technological revolution is taking the world by storm by paving the way for business operations. Especially, the technology is engaging accounting and finance with the latest tools and strategies for more effective solutions. With the COVID-19 wreaking havoc, businesses had no choice but to embrace the technology and transform digitally. The pandemic forced the industry to allow the employees to work in new ways and maximize technology use.
Meanwhile, experts believe that these trends will continue to follow even in the post-pandemic world. Now businesses are looking for a more strategic and holistic approach to tackle the current uncertain financials. But to keep your business afloat while managing financials and tax regulations, it is essential to keep up with the trends. With that said, let’s discuss accounting trends that will rule in 2021.
AUTOMATION AND ARTIFICIAL INTELLIGENCE
With the dawn of the pandemic, the business sectors kept swirling on different measures to generate financial reports. With the pandemic restrictions to curb the spread of the virus, the business sectors were experiencing an economic downturn and financial disruptions. Moreover, it also added the risk of laying off the employees and falling out of competition in the market. However, the latest technological innovations like automation and artificial intelligence are revolutionizing the business’s accounting. Automation and AI are combining to form a force to boost productivity and minimizing errors.
However, these innovations also demand training and education to make things right for your business. For that instance, aspirants pursue online masters of accounting to acquire in-depth and latest technical skills for advanced accounting. This way, they can gain the knowledge to work with advanced tools within the comfort of their home. Business owners can now employ different software that can automate repetitive tasks while generating accurate reports with AI. These tools can improve not only the time but also minimize the cost and errors.
Another prominent trend that is taking the world by storm in 2021 is cloud accounting. It is an advanced and most cost-effective solution available for the businesses that are affected during the pandemic. It can save running in-house accounting software and replaces them with online tools for more accessibility and security. In today’s pandemic-driven world, most businesses are encouraging their employees to work from home. In such a situation, a cloud accounting program can provide a solution for accountants and business authorities to share and access daily accounting operations documents instantly.
According to research, more than 67% of accounting professionals encourage cloud accounting because of its cost-effectiveness and productivity. Meanwhile, only 58% of the businesses have implemented the latest technology for accounting.
EMBRACING DATA ANALYTICS
While discussing the top trends that will rule in 2021, data analytics are never an exception. Data is the new oil of the digital world that can take your business to new heights. Significantly, the accounting sector needs data analytics to generate reports and predictive analysis to find the future outcomes of the business strategies. The uncertain situation from the pandemic has increased the importance of proactive approaches. Crunching numbers for preparing accounts and tax returns are not enough to ensure business proliferation. Now businesses demand the latest reports and data to devise strategies for advancing their business further.
These reports may include operational inefficiencies, financial details as well as market status. Business owners have to consider all these factors to decide on expansion. Data analytics can also aid the insights to manage the business risks and improvement for the business operations.
As said earlier, the COVID-19 pandemic has forced businesses to shift their operations remotely, allowing employees to work from home. It increases both challenges and opportunities for the companies to cut costs and invest them in more critical resources.
For instance, instead of managing employees in a traditional workplace, they can hire multiple employees to boost their productivity. The cloud and AI availability can assist the accountants in sharing the data remotely, whenever and wherever they are. The key is to widen the approaches to reduce the cost of investment while improving the accounting landscape.
Information security also remains a crucial factor to keep a safe side from potential threats. Cybercrimes are a rising concern in 2021. In fact, the mass-scale digital transformation is adding the concerns for an increase in data breaches and ransomware attacks. Now businesses have to remain vigilant and also prioritize cybersecurity. They have to establish secure networks for their employees to connect with the cloud and access the data. But still, the attacks and threats are inevitable parts of the digital world.
Blockchain was already a prominent trend in recent decades. Fortunately, it is making a comeback in 2021 with more advanced and secured results. Blockchain technology works with interconnected independent computers that record the transactions in an unchangeable digital ledger. The technology is poised for the accountancy to assist the businesses with recording transactions, liabilities with the digital tools.
The technology and advanced strategies can help businesses elevate their standards and boost the performance of accounting activities. On the other side, staying relevant to the latest trends is essential to ensure you do not fall out in the competition. Look for the tasks that you can streamline and engage with employees by leveraging cloud technology.