Technology is constantly changing, it also affects accounting which is becoming more efficient. As a result many accountants feel that accountancy is undergoing a cultural shift. It is leaning more toward technological adoption and keeping global issues in mind. In this article, we would like to introduce you the most significant accounting trends in 2020:
- Further demand for Accounting Software Solutions
All over the world, there is ongoing strong demand for software accounting platforms (such as Xero, FreeAgent, Sage Intacct and others) to inter alia manage spreadsheets and minimise manual tasks. In the coming years, there will be a rise in demand for the adoption of such technologically-driven solutions in accounting sectors. North America will be a leading country in the accounting software market.
- Outsourcing Accounting Functions
Also in 2020, one of the fastest-growing areas in the accounting industry is expected to be outsourcing accounting functions to accounting outsourcing service providers. Outsourcing enables companies to focus more on their limited resources and increase profitability e.g. by saving on employment costs like salaries, benefits and training expenses.
- Cloud-Based Accounting
Cloud-based accounting systems are becoming increasingly popular in the accounting industry and this trend should continue in 2020 as well. Accounting companies are able to access their data anytime thanks to such systems. They allow for the creation of workflows, tracking sales, expenses, and inventory, etc. These systems are also adopted for comprehensive financial reporting, project management and client communication. According to a Sage survey, more than sixty percent of accountants value cloud-based solutions as it makes their jobs easier.
- Automated Accounting Processes
One of the key trends in the industry is automating more and more accounting processes. Over 50% of executives in the accounting industry expect the further development of automated accounting systems in a few years. The major advantage of automated solutions is minimisation of errors and elimination of confusion. As this is completely dependent on computers and the Internet, businesses face the risk of becoming victims of online fraud and compromised digital security. This causes greater demand for in-house accountants or auditors to check for any data inaccuracies. Hence, there is no need for them to worry about being replaced by bots for the time being.
Blockchain technology is also changing also the accounting industry e.g. by lowering the costs of reconciling and maintaining ledgers, and this trend is expected to continue for years to come. With blockchain, accountants are more knowledgeable of their organization’s obligations and available resources. The blockchain also provides the needed accuracy in terms of ownership and history of assets.
Information Source: Finances Online by EU Development Office