With the advent of innovations and new technologies due to pandemic across the world, the economic environment continues to evolve. Therefore, the change becomes a new constant for organizations to reshape their business model and business processes to be aware of recent trends. Accounting is an essential element of the business process. A well-run function of accounting provides accurate, timely, and relevant information in making decisions.
Given below are the latest accounting trends in 2020:
1. Automation of the Accounting Function:
In accounting, automation is fueled by the advancement of software. In this globalized era, accounting is highly automated without the requirement of physical intervention. The latest accounting software-enabled many firms to minimize data entry. It also leads to the effective usage of better management and resources.
2. Cloud-based Accounting Solutions:
The concept behind using cloud-based accounting solutions is to include software which runs on the servers of the providers and can access all the financial information in the cloud.
3. Integration of Accounting with Operations:
By using accounting software assistance, it’s easy to integrate accounting functions with all the business resources. These operations give better management of timely entry recordings and financial transactions. The integration of accounting with operations saves time by automating all the routine functions.
For any business organization, outsourcing accounting allows them to focus on better utilization of resources. This trend is not limited to medium and small-sized organizations. Even big entities are outsourcing their processing functions to the outsourcing vendors, usually in BPOs.
5. Transparency and Objectivity:
Accounting governing bodies like Certified Public Accountant boards have implemented significant emphasis on transparency and objectivity. In the wake of the recent accounting scandals and irregularities, the credibility of the accounting profession and restoring trust are a must.
6. Data Analysis:
Information plays a vital role in making financial decisions. Database techniques, data centres, and software have started in the age of mining data and big data to aid decisions in the management. The data generated by accounting has often been a crucial component in decision making. Focusing on the data analysis of financial information which is one of the key trends in accounting in 2020.
7. Changes in Accounting Standards:
Accounting standards are continually being updated and revised to keep up with times. Most of the standards were developed before the start of ad-tech, social media and so on. These business models have a huge impact on accounting. In this competitive world, most accounting professionals are required to keep up with all the changes happening.
8. Social Media Integration:
Social media has become very popular these days, and by using this platform, accounting professionals communicate with colleagues and peers to update one another on political, latest business, and accounting developments.
9. "Mobile" Accountants:
With cloud computing and acceptability of electronic documentation in place of invoices, traditional paper-based vouchers, and receipts, the accountants are increasing mobile usage. Accountants are currently sharing tools to enhance remote collaboration.
10. Proactive Accounting:
In general, accounting function used to be natural reactive, i.e. it records the transactions that are to be posted. But, now it is changing due to many factors like evolving business regulations, models, and increasing accounting roles in decision making. Besides, this trend has been proactive in 2020. It allows the business to run efficiently.
Hope these latest accounting trends help you enhance business decisions and compliances.