Top 7 Accounting Trends To Follow In 2023
Accounting trends refer to the changes and advancements taking place in the accounting sector. These changes may be the result of anything from revised regulatory frameworks to shifts in consumer preferences. Among other things, keeping up with the latest trends can help you improve and streamline your processes and add more value to your clients or organization. In this blog, we will share some of the top accounting trends that you should follow in 2023 to stay competitive and relevant in today’s cutthroat market.
In recent years, more and more businesses are switching to cloud-based accounting systems. The flexibility offered by cloud-based accounting is a major plus. Since everything is stored online, you can access your accounting software from any device, whether it is your laptop, tablet, or even your smartphone. It is a great convenience for busy business owners or accountants who need to get work done on the go.
Another advantage of cloud-based accounting is that it often comes with features that can automate repetitive tasks, such as bank reconciliations or invoice generation. That way, you will save time and reduce the risk of errors.
Remember, while cloud-based accounting software offers numerous benefits, it is important to choose software that meet their specific accounting requirements. For example, if your business is required to comply with GASB Statement No. 87, you may want to consider investing in GASB 87 software. This type of software is designed to help organizations track and report on lease assets and liabilities in accordance with GASB 87.
Blockchain technology has been making waves in the accounting industry lately, and for good reason. In essence, blockchain is a digital ledger that operates in a decentralized manner, ensuring secure and transparent transaction recording. Transactions are recorded in individual blocks, each containing a digital record that is immutable once added to the chain.
So, what does this mean for accounting? Well, for starters, it means that blockchain technology can increase the transparency and accuracy of financial records. Since each transaction is recorded on a public ledger, there is no need for third-party intermediaries to verify or reconcile financial data. One area where blockchain technology is already being used is in cryptocurrency transactions, such as Bitcoin.
You know what they say, accounting is not just about crunching numbers. It is also about building relationships with clients and helping them make smart financial decisions. And that is where client-focused services come in.
In recent years, there has been a shift towards providing more personalized and tailored services to clients in the accounting industry. It basically entails that instead of offering a one-size-fits-all approach, firms are keen to understand each client’s unique needs and deliver customized solutions to fulfill them.
One of the stand-out features of client-centric services is effective communication. Accountants must take the time to understand their client’s goals and expectations, as well as their concerns and challenges. By doing so, they can develop more meaningful relationships with their clients and deliver more valuable services. Some of these services cover tax planning, financial forecasting, and risk management.
Like other sectors, the COVID-19 pandemic accelerated the trend of remote work in the accounting industry as well. Many accounting firms shifted to remote work to adhere to social distancing guidelines and ensure the safety of their employees.
Over time, accountants adapted to new ways of working, including virtual meetings and online collaboration tools. With these tools, they can easily access and share information with colleagues and clients from anywhere in the world. In addition, accountants are now able to strike a better balance between their professional and personal lives. They can work from anywhere, reducing their commute time and allowing them to spend more time with their families.
Value-based pricing model bills customers based on the value provided, not the number of hours worked or services rendered. This trend emphasizes that accountants must focus on providing high-quality services that truly benefit their clients, which in turn can result in better profitability for the accounting firm.
Accounting tasks have become more streamlined, thanks to technological advancements and automation. This makes it more difficult to justify billing clients based on hours worked. With value-based pricing, accountants can ensure that they are fairly compensated for the value they provide.
Big data allows businesses to collect massive amounts of information from various sources. And as you might have guessed, accounting firms are no exception. In fact, they are looking for people with top-notch data analytics skills to help them make sense of all that data.
With big data analytics, accounting firms can identify trends and correlations that they would otherwise miss. They use this information to provide their clients with valuable insights and recommendations. For example, by analyzing huge datasets, accountants could predict the financial risks that a company might face in the future. It empowers them to come up with plans and solutions to mitigate those risks before they inflict any damage.
So, the bottom line is, big data is a game-changer for the accounting industry. By harnessing the power of big data, accountants can be more proactive, anticipate problems, and take control of the situation.
Unlike in the past, consumers are more aware of the impact that businesses have on the environment. Thus, many of them are now looking for products and services that are environmentally friendly and socially responsible. It means that businesses that prioritize sustainability and ethical practices are more likely to attract customers and maintain long-term success. Hence, organizations are going out of their way to minimize their impact on the environment. They can leverage environmental accounting for this purpose.
Environmental accounting involves analyzing a business’s environmental impact and integrating that data into financial reporting. It includes tracking carbon emissions, water usage, waste disposal, and other sustainability-related metrics. By incorporating this information into financial statements, businesses can provide stakeholders with a comprehensive view of their environmental performance.
The accounting industry is evolving at a rapid pace. Thus, accounting professionals and firms need to stay up-to-date with the latest developments and technologies. Adopting the seven trends covered in this blog will give you a competitive edge and help you provide more value to the clients.