Some people think that COVID-19 changed the accounting world forever. Understanding business technology and staying close to future trends is crucial for today's Accounting Business.
Some people think that COVID-19 changed the accounting world forever. In reality, it's not so much that it changed the way we do things. We still balance the books, reconcile transactions and put a lot of effort into our month-end close. It did, however, thrust us into the future, pushing us further along the path we were already on. Understanding business technology and staying close to future trends is crucial for today's Accounting Business. These top accounting trends for 2021 should be on every Accountants radar:
1. Accounting Business would Continue to Grow: Post covid, the accounting industry is expected to continue to experience high demand due to the new government policies, regulations, like the PPP and Cares Act in the US, and improved working ways. The accounting services industry is expected to continue to experience strong demand over the next five years to XXX, as overall business activity improves after the COVID-19 (coronavirus) pandemic and subsequent recession. Increasing numbers of businesses, coupled with increasing corporate profits, are likely to increase aggregate private investment and generate higher demand for traditional accounting services, such as auditing and corporate tax assistance.
2. Advisory, Cloud, Automation: Sweeping disruption of the accounting industry is imminent. Massive technological change and shifting consumer trends demand a new approach to how the enterprise creates value for clients. Some services are more vulnerable to disruption than others. For example, essential transactional accounting services have already been primarily automated (though adoption has varied significantly across types of small businesses). Compliance will be increasingly automated going forward, and limited advisory services will follow that trend. Automated processes can provide the bulk of services with oversight, while accounting professionals will focus on offering expert advice and insight, strengthening customer relationships in the process.
Perhaps the most dramatic example of fast-moving changes in the accounting industry is the massive shift to data entry automation for bookkeeping and accounting. Before the rise of data entry automation only a few years ago, a Paystream Advisors report revealed that 84% of invoices began the processing cycles as a fax, paper document, or email attachment. These had to be converted into enterprise resource planning system (ERP) formats. In contrast, modern automation software cuts cost increases efficiency and handles more processing volume with a more minor error.
3. Cybersecurity an Important consideration:
Data security is a top-of-the-mind concern for businesses outsourcing their accounting services. Data breaches continue to occur at an alarming pace, victimizing high-value targets as well as small to medium businesses. This environment may cause concern, especially if you are turning over your company's financial information as you outsource to third-party bookkeeping services. There are several strategies to consider to protect your company's data. Small business accounting practices may act casual when it comes to securing data because of the mistaken notion that the company is too small of a target for malicious hacking. Take note that in most data breaches, hackers were going after personal information such as social security numbers, bank account numbers, and passwords, all of which are demographic information contained in your accounting files for your employees, executives.
As you look to the future, it's recommended to partner with an office with the highest data security protocol level." Entigrity" takes data security very seriously. Even after serving 550+ accounting firms for more than 8 years, there has not been a single case of the data breach.
4. Zooming in on remote working :1 in 2 accountants will work from home in 2021:
Accounting leaders are consequently adapting to the trend of allowing employees to engage in remote work. According to a 2020 survey published by Arizent, 85% of CPA firms will allow their firms to work from home even after the pandemic (Accounting Today, 2020). This would not have been possible in the past. With technological advancements and the emergence of computerized accounting systems, accountants working from home can produce excellent results in their work as those in office settings. If you are working remotely whether working, from 'Boston or Bangalore', 'Miami or Mumbai', 'New York or New Delhi', is all the same, as long as your staff has the right skill set, attitude, and speaks the same language. Most firms have even gone a step ahead and started building their offshore teams.
5. Building an offshore team would be on the uptick: Offshore staffing is being seen as a long-term opportunity for expansion and firms have been grabbing it with both hands lately. It's safe to say that firms that have invested in offshore staffing have stayed immune to the slowdown caused by the pandemic. Businesses are now outsourcing accounting functions and reaping their many benefits. Outsourcing lets companies focus more on their limited resources, increasing profitability. It also saves them employment costs like payroll, taxation, salaries, services, and training expenses. Hence, Offshoring accounting functions are becoming a popular strategy among many companies.
Entigrity™ is a trusted offshore staffing partner to over 500+ accountants, CPAs, and tax firms across the US and Canada. Our flexible and transparent hiring model gives helps firms of all sizes to hire staff for accounting, bookkeeping, tax preparation, or any other task for 75% less cost. As a firm 'run by accountants, for the accountants', Entigrity captures the hiring needs of accounting firms most precisely, providing staff that works directly under your control and management, still, you are left with least to worry about compliance, payroll taxes, overheads or any other benefits.