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Top Accounting Trends Shaping Businesses in 2020

Biswajit Mishra 
on 30 July 2020

LinkedIn


Technology has several stories to tell. The word itself is similar to development and, in an abundance of today's business landscape; it continues to reshape industries and businesses. It transforms systems and processes, changing manual tasks into automatic functions.

Developments like SaaS and cloud-based subscriptions, in conjunction with on-premise solutions, are the most used technology today. Still, a lot of technological disruptions square measures are on the way for accounting.

But the year has brought a lot of uncertainty and changes in terms of how accounting and finance firms work. Bookkeepers and accountants will have to keep a close watch on the changes in current situations and the latest technology to keep pace with the world.

In this article, we are going to present the latest accounting trends which will form the trade in 2020, from rising uses of cloud to automation.

#Trend:1 Artificial Intelligence (AI)

"Sixty-six percent of accountants would invest in AI. Also, 55% of them see themselves using AI in the next three years", reports revealed by the Sage.

Artificial Intelligence (AI) is thought to supply positive leads to the accounting business. While machine-driven and psychological feature technologies like computer science, AI process, and prophetical analytics can assume a growing portion of the manual work accountants perform.

58% of the Accountants believe that AI is helpful for Accounting.

But the importance of AI in accounting is growing a lot because it optimizes admin tasks and accounting processes that lead to varied structural changes. AI provides huge opportunities for accountants and a brand new level of potency for workflows.

Top Accounting Trends Shaping Businesses in 2020

#Trend:2 Automation

Automating additional accounting processes could be a key trend within the trade. Automation eliminates confusion and minimizes errors that are why corporations ' area unit additional inclined to speculate in machine-controlled solutions. Since the method depends heavily on computers, businesses get the assurance of security and face zero fraudulence activities.

50% of the Accounting task can be automated.

AI has complemented accountants and business owners drastically by reducing manual efforts and accounting errors and allows them to require up informative ideas. It doesn't come back as a surprise that several accounting companies have already integrated AI-based automation capabilities into their processes.

#Trend:3 Cloud Computing

Accounting to the Today reports, "More than 50% of all businesses have already shifted to online computing, this will become an $11.8 billion industry in the next 5 years."

The cloud is changing into a well-liked place for accounting services. With cloud-based accounting systems, firms and corporations square measure ready to have access to their system anywhere, anytime. Data access additionally includes tracking inventory, sales, and expenses. Moreover, cloud-based solutions allow the creation of work-flows, saving businesses valuable time.

 

By 2020, 78% of small businesses will rely solely on cloud technology, as per the study of Accountancy Age.

Cloud technology has changed the way of operating the business. It offers easy and advanced services at an inexpensive rate. Cloud accounting eliminates the requirement of setting up accounting software on the local system. Moreover, it makes accounting jobs easy for all sorts of businesses.

As such, sixty-seven of accountants currently believe that cloud technology will create their roles easier.

#Trend:4 Remote work and online tools

In today's fast world, your organization's success depends on how quickly you'll get things done, and dealing with tasks with a team makes it easier. One of the foremost helpful functions of contemporary computer code is remote collaboration. You'll work simply with all the members of your team and coworkers in several business departments. Online collaboration tools can help you to work collaboratively and increase productivity.

It'll additionally assist you to organize and rate tasks on an urgent basis, complete tasks quickly, and save time and cash of your business. Collaboration tools allow business owners to access information in order that they will handle the company ' s accounting processes from wherever they're.

#Trend:5 Blockchain

Another trend to appear out for in 2020 which will revolutionize accounting and auditing professions is block-chain. The redistributed ledger offers a well-advanced technique to manage finances and cash transfers.

As per a survey, " The accounting industry sees more investments in blockchain-based projects. "

Till now, money transfers were being done through a financial organization or a bank serving because the inter mediator. Blockchain technology removes the requirement for mediating entities and improves security. This also allows individuals to create transactions or transfer funds directly.

Although this idea remains in its initial stage, its adoption can for sure begin in 2020. Until then, it's suggested to look at this idea closely.

Merriam-Webster defines blockchain as "A digital information containing records of economic transactions that may be at the same time used and shared at intervals an out-sized redistributed, in the public accessible network."

 

#Trend:6 Integration of Accounting with Operations

With the help of accounting software, one of the most popular trends in accounting is to integrate accounting tasks with all components of the business. This provides higher management of transactions and timely recording of entries. For example, the accounting performance may be often updated in real-time by the sales division as sales occur. The integration of all these components would save time by automating routine activities.

Technology is advancing, and small businesses and industries have to adapt to those changes. Technology like automation, computing, integrated platforms, Artificial intelligence, and collaborative packages are massive influences for the accounting world. As we have gone further in 2020, it's within the best interest of your business to find out regarding these advancements and leverage them to stay your accounting processes economical and reliable.


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