The Accounting Industry in 2021 – What to Expect
Author: Financial Cents
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It is always helpful to look into your industry’s projected trends to do well in the new year. Trend analysis can help business owners identify areas in their operation that they can further improve. It enables them to see which elements are not doing well and which provides value. In short, we can say that trends are a kind of guideline that can help you make better decisions for your business strategy.
Accounting in 2021
When it comes to accounting, here are the expected trends for accounting industry in 2021 that we have gathered.
Trend #1. The Rise of Cloud-Based Accounting Services
From traditional paper and pen to Excel, technology has helped positively transform the accounting industry. For the past years, accountants have been using software that enabled them to manage their businesses, track their projects, and store confidential information about their clients in-house. However, thanks to technology, there is a better way to manage everything now, no matter your location.
Cloud-based technology is not something new, but it is not often used in the accounting industry. Cloud-based systems increase any industry’s efficiency. It allows authorized individuals to access the information they need regardless of the device they use or setting they are in. An example of such cloud based technology is accounting practice management software.
Trend #2. The Efficiency of Automation
Whether you admit it or not, some specific tasks in accounting are too mundane for some employees. Thankfully, modern technology also introduces the gift of automation. This feature is often portrayed as a negative feature that can displace people from their jobs. However, it has many advantages, such as helping speed up work processes and improving accuracy. Automation also increases the productivity of an organization.
This year, we expect more introduction of developments that feature artificial intelligence and machine learning in the market, particularly for the accounting field.
Trend #3. The Power of Blockchain
If you have heard about blockchain technology, you should expect to hear more about it this year. Blockchain is an intelligent way you can protect your system. It is a system that records and distributes the information you have without allowing hackers or system cheaters to change or edit them.
If you think your accounting business needs a decentralized, distributed ledger to contain your digital asset safely, consider learning more about this technology. It can also make in-depth auditing and tracing past information more manageable.
Trend #4. The Importance of Data Analytics
Making business analysis is one of the crucial jobs of an accountant. Data analytics tools can help them perform this particular task better. By using these tools, accountants can create valuable financial reports and insights for their clients. You can create an account that can help clients make more informed decisions. Moreover, tracking your clients’ progress or inefficiencies will be easier as well.
If a business analysis is a highlighted service that you offer your clients, the rise of data analytics can help you develop and speed up your work.
COVID-19 has significantly changed the way things are implemented nowadays. Aside from the rise of technology that made processes more efficient and convenient, the global crisis also meant that more services, like accounting, are expected to be continually outsourced.
Since the world is not yet a hundred percent cured of this global pandemic, make sure that your business is prepared for whatever may come. See how these 2021 accounting trends can further help your business operations.
Looking for project management software for accountants? Financial Cents is the most convenient way to check what your staff is currently working on and ensure you hit your deadlines. It is a workflow software for bookkeepers that can help you streamline all your work with the help of automation, workflow and client management, time tracking, and invoicing. Start your free trial now.
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