Digital Accounting Trends for 2020

Accounting services are now available online and expanding. What’s the expectation, and why the need? Accounting is always complicated, and automation makes it easier to manage. The worldwide demand for accounting software will continue to grow into the foreseeable future.

Some of the most current popular software packages are Sage Intacct, Xero, FreeAgent, Gusto, and Sage Business Cloud Accounting, each providing unique solutions to various accounting challenges. Companies feel increasingly confident in outsourcing their accounting to outside interests. As a result, cloud-based accounting is becoming the norm for many companies. Keeping data in the cloud allows more access to more people without compromising quality. It enables the tracking of sales, expenses, and inventory control and then providing the same data to anyone who needs to know as long as they have internet access. It also allows for the elimination of repetitive procedures and saves money. A side benefit of all the new data is the advent of advisory services. No matter how much information accounting generates, someone has to look at it and make human-based decisions that computers can’t.

For this reason, the total automation of accounting systems is not possible. Another benefit of advisory services is artificial intelligence or AI. AI will allow accountants of the future to rely on computers and the cloud to assist in making decisions faster with more empowerment. Working hand in hand with AI is big data. Big data is simply the collection of information from across the company or the whole internet. It’s the kind of data that’s impossible to comprehend without a computer. But don’t let the words make you think big data is just another term. Firms are looking to companies like technology CPA accounting services to have access to big data when making decisions on hiring.

With automated accounting comes more data, and more information means increasing data analytics. Firms like technology CPA accounting services use data analytics to take massive amounts of new data and create models for study for things such as improved productivity. Blockchain accounting is also on the rise. The blockchain allows for automatic accounting controls due to the nature of the blockchain itself. The blockchain is a virtual safe when it comes to accounting security since it’s all but impossible to alter data once it’s entered. The same concept in security also allows for account ownership, which also cannot change or suffer the fate of hacking.

Accounting firms like technology CPA accounting services are taking advantage of social media to improve and promote their image online, which often translates into increased sales and website traffic. The use of sites like LinkedIn, Facebook, and Twitter, along with online message boards and forums, lets companies keep track of competitors and industry trends. Increased and more robust internet connections are allowing virtual meetings with non-stop face to screen contact. These are the kind of things the next generation is looking for in accountants. The millennial set is looking for more transparent and paperless systems that automation and the cloud offers. The role of the accountant in the future is changing along with the times. Accountants have to understand the intricacies of computers and more to keep up.

One exciting trend that has nothing to do with accounting is working remotely or working from home. The current economic situation, along with increasing automation, allows accountants to dictate employment terms that were unheard of only ten years ago. The current unemployment rate for accountants is an incredible 2.0%, with no sign of change imminent. Increasing internet access and tight labor markets, along with rapid digital conversions of accounting systems, are sure to make for an exciting year.

 

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