The trending technical prospect of accounting in 2021
2021 welcomed a new beginning and futuristic revolution in accounting outsourcing. The sudden outbreak of the global pandemic poses many challenges and turned the entire outlook of the market. It is thus, crucial to look forward and get excited regarding the upcoming operations of the back office service providers and accounting professions.
Amidst this situation, professional accountants are looking forward to adopting new technologies to securely operate accounting procedures. Take a glance at the latest technology trends to streamline the workflow of accounting firms:
Cloud-based accounting architecture
67% of the accountants believe cloud computing helps to carry out accounting and finance outsourcing in the future. The growing popularity of remote work across the sectors triggers a cloud-based solution and enables the organizations to operate the system efficiently. Most accountancy firms rely on on-premise servers and back-office service providers to manage sales, track inventories, and store confidential data.
Cloud provides a flexible and secure solution supporting contemporary work habits. It increases the efficiency and accessibility of the entire function and can outweigh the upfront costs.
Cloud provider, Sage, has reported that 53% of the accounting sectors embraced cloud technology to pace up their project management functions.
An upsurge of automation in accounting
Technological developments in AI, ML, and BigData offer a host of opportunities for streamlining the outdated process and automate laboursome tasks.
Organizations are looking forward to accelerating the mundane tasks to upskill their people and push employee skills. Recent data by ACCA revealed that more than 50% of the C-Suite executives trust automation and consider it as a pivotal part to shape the future of their accounting tasks.
With BigData, CPA firms can generate an accurate forecasting model and solve complex tax formulation. On the other hand, automation offers a valuable resource to support accountants with advanced decision-making capabilities.
It is crucial to recognize the risks related to the increased reliance on computers. Your organization should remain vigilant to online scam attempts and establish the necessary regulations to safeguard against cybercrime.
Unleashing the Power of Blockchain in Finance and accounting
Blockchain has set up a revolution in the banking and finance sectors. There has been an overwhelming focus on businesses and how blockchain can track the movements of useful compositions. Blockchain or Distributed ledger technology indicates the use of a network of independent computers for recording, sharing, and synchronizing transactions.
The account sectors can streamline their workflow by tracking their own assets and building an unobtrusive perspective over their in-house workflow. It maximizes operational efficiency and improves the traceability of historical events.
Accounting and finance outsourcing
The sudden upsurge in remote working throughout the COVID-19 pandemic triggered the most radical accounting employment trend. There is a growing appetite for outsourcing a few tasks from third parties. It enables an organization to take on new clients, offer a wide range of services, and fill any crucial project skill gaps.
Outsourcing can play a significant role in supporting accountancy firms through an adverse situation. Instead of hiring full-time employees, you can save your maximum budget and incur the cost associated with payroll and employee benefits. Therefore, the outsourced business model offers some potential services.
Explore new avenues of data Analytics
The increasing trend of cloud-based computing and access to BigData presents outstanding opportunities for accountants. With data analytic tools, you can help the firms gather valuable financial insight, locate operational inefficiencies, and create exact forecasting models.
Thus, there will be an increasing demand for data specialists to interpret complex databases and gather valuable business advice. Due to the remote accessibility framework, improved regulation and protocols can be adopted for financial growth.
As the current global scenario triggered many companies to reconsider the conventional way of operation and task management, CPA and CA firms embrace remote collaborating with financial outsourcing. They also have adopted a new business model to face adverse challenges. The collaborative approach for connecting futuristic accountancy firms across the globe share the updated industry situation. It will eventually establish common goals and innovate work culture.
Organizations need to develop better standard ethics when it comes to the security of confidential data. With ABS Experts, you can connect your accounting firms with committed professional services and share your expert knowledge with clients. Join today to participate in the tech revolution and prepare your accounting firm for upcoming challenges.