With 2019 coming to a close, it is safe to say that this year has been a monumental one for both the finance and accounting industries.
As the effects of significant changes, milestones, and the advent of technology continue to elevate the state of finance and accounting, various transformations have impacted the way both accounting firms and their clients operate. Information Technology (IT), in particular, has made a major impact on them. More accounting firms have moved to digitize their operations on a grand scale.
Now, you might be wondering, what else to look forward to in the next year for the accounting sector? What trends can accounting firms expect this coming 2020?
In this article, we looked at two potential developments that can come up in 2020 that can play a significant role in shaping the accounting industry.
More automation
Machine learning and artificial intelligence (AI) are becoming even more accessible in the coming years. Given that, it has become clear that automation will play a key role in innovation across all industries—and accounting is no exception.
Automation could be made available to accounting firms in the form of shortened processes, high-functioning accounting software, and various other tools that can aid in performing standard accounting processes.
Moreover, automation can prove to be immensely beneficial for small accounting firms that want to do more to grow their business but don’t necessarily have the workforce to do so. Through the use of automation, it will become a whole lot easier to compile information at unprecedented rates while making sense out of every number that is gathered in order to boost process efficiency.
The age of blockchain
Consumers nowadays are more particular about the transparency of data and key decisions that are made during their transactions to the point that accounting firms are now pressured to make way for security developments. Through the use of blockchain technology, however, the quest for transparent information doesn’t have to be a lose-lose situation any longer.
Although it may be synonymous with Bitcoin and the cryptocurrency market, blockchain technology is also expected to make waves in the accounting industry in the new year. Blockchain and accounting have been perceived as the perfect match because the former’s single ledger technology makes it possible for users from different sources to access key financial information in real-time. This ability essentially solves the modern transparency conundrum.
By pairing your services with blockchain technology, it will be much easier to avoid the complications of terror financing and money laundering. Blockchain technology for accounting can effectively perform round-the-clock auditing, compliance, and reconciliation processes.
The mere thought of what’s to come in 2020 can keep any accounting firm owners on edge as the industry continues to grow more competitive. By taking this guide into consideration, you can stay on top of the anticipation by making the necessary preparations so that your accounting firm can capitalize on what’s to come in the following year. Keeping tab of the emerging trends will enable you to adapt easily to the changes to remain competitive.
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