2022 has arrived, and we’re excited to see what might be happening this year in the world of accounting.
Over the past couple of years, accounting firms have had to adapt to a disruptive, uncertain landscape. They have been forced to transform their processes, reexamine their working environments and contribute to many the economic recovery of many businesses.
While the year will be suffering with a hangover from the last two, there are still many reasons to be positive. We are moving rapidly in the accounting industry with advancements and technical fixes.
So, what accounting trends should companies be aware of in 2022?
Key Accounting Trends You Should Know
- Role of Artificial Intelligence (AI)
Artificial intelligence can provide massive opportunities for accountants. That is, AI allows us to analyse large volumes of data at high speed, as well as increasing productivity and generating more accurate data at a reduced cost.
AI was previously the domain of the larger firms due to its cost and recourses needed, but now the cost is negligible compared to even a few years ago.
The use of AI opens up opportunities to service a wider audience. Being able to readily access data helps accountants to build and present a more complete story to clients about their business.
With automated processes in place, AI will code, route and analyse information and provide additional insight using future financial results and market data trends.
- Automated Accounting Processes
A key trend in the industry is automating more accounting processes. This can eliminate confusion and minimise errors, and in view of this, more and more companies are investing in automated solutions.
Labour and time-intensive areas of accounting such as audits, tax preparation, banking, and payroll are quickly becoming fully automated. Tried and trusted solutions such as QuickBooks and Sage have liberated accountants from the time-wasting tasks of manual data entry and have streamlined everything.
According to Mckinsey, 50% of accounting tasks can be automated through currently available technologies.
- Outsource Accounting Services
Outsourcing is a process when a company hires talented people at affordable pricing. It will save your company save time and get their work done in effective time.
Outsourcing accounting services are more popular than ever before. Businesses want to reduce their expenses and improve efficiency. Entrepreneurs tend to be occupied with running their businesses, and therefore won’t typically have time to deal with accounting responsibilities. Outsourcing is a great solution to this.
- Cloud-Based Accounting
The cloud is becoming a popular place for accounting services. With cloud-based accounting systems, companies and firms are able to have access to their systems at any time. Without a doubt, this has been a beneficial shift for teams working remotely since the COVID-19 pandemic began.
Data access also includes tracking inventory, sales and expenses. As a result, more and more businesses are making the shift to cloud-based accounting systems.
Sage conducted a report that found “67% of accountants say cloud technology is improving client interactions and service offerings.”
- Focus on Data Analytics
Accountants use data analytics to help businesses uncover valuable insights within their financials, identify improvements that can increase efficiency, and better manage risk.
Although analytics in accounting services is not entirely new, it’s now more powerful than ever, presenting financial performance in a new light for better actionable insights.
Four types of data analytics:
- Descriptive analytics – What is happening?
Accountants report on the flow of money through their companies and organisations: revenue and expenses, inventory counts, sales tax collected.
- Diagnostic analytics – Why did it happen?
Accountants regularly analyse variances and calculate historical performance. Because historical precedent is often a great indicator of future performance, these calculations are critical to build reasonable forecasts.
- Predictive analytics – What’s going to happen?
Using predictive analytics, accountants are instrumental in building forecasts and identifying patterns that shape those forecasts.
- Prescriptive analytics – What should happen?
Accountants use the forecasts they create to make recommendations for future growth opportunities or, in some cases, raise an alert on poor choices.
- BlockChain Methods
What is BlockChain? “At its core, blockchain is a distributed digital ledger that stores data of any kind,” Forbes Advisor reports. It is most noteworthy in its use with cryptocurrencies.
The technology provides a way for organisations to view their assets. This can help you make decisions about where to distribute your assets or how to lower operational costs.
There’s great excitement regarding the blockchain technology – more than 55% of businesses said that blockchain technology is one of their top-five strategic priorities – up from just 43% in 2018.
It’s an incredibly transparent way of working, as there’s nowhere to hide. You can’t ignore an unpaid invoice when it’s sitting there for everyone to see.
2022 is set to be a big year for accountancy, so make sure you’re ahead of the curve.
We want to help you on your accounting journey. Here at Count, we are committed to helping you make the best choice. Feel free to contact us here today!