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Disruption & Automation in the Accounting Industry in 2020 – What to Know

As the modern world continues to develop at an unprecedented rate, every industry continues to face waves of sweeping disruption daily. That includes accounting.

With the continuous shifts in consumer preferences and massive technological changes, accounting firms and number-heavy businesses alike are obliged to rework the way they create value for every one of their clients. It is worth noting, however, that there are certain accounting services that are far more susceptible to disruption than others, as they are more compatible and replicable with the use of automation. 

With the advancements in automation becoming much more available to all sorts of businesses that rely on proper accounting services, compliance with growing consumer demands entails automation. So you might be wondering: What will the future of accounting be like?

The future of the accounting industry

Automation paves the way for the future of accounting, but it is vital to understand that it is not here to replace accountants or rid the entire industry of human labour. Based on how automation is being programmed in the accounting industry itself today, several basic services will experience some degree of disruption while accountants themselves will move on to more complex tasks, such as:

  • Consultation
  • Data interpretation and strategic planning
  • Expert advice and insight
  • Sustaining consumer relationships
  • Reinforcing a need for accounting firms

While the future of accounting may be anyone’s guess, we’ve put together a few forecasts on how disruption will affect the industry as a whole, so you can prepare your accounting firm for long-term growth: 

  1. A bigger display of influence by connection convergence 

With faster internet speeds and the evolution of broadband connections, the concept of in-person meetings is one of the main staples of accounting firm operations that have been experiencing intensive levels of disruption. 

Nowadays, bookkeepers, accounting firm owners, controllers, and CPAs can have seamless two-way conversations with existing and potential customers through apps, such as Zoom and Google Hangouts. While it might not be like seeing the actual client in person beyond the screen, but connection convergence is much closer to the ability to create conversations that feel realistic and are as productive as ever. 

  1. Increased levels of accessibility for data

Another aspect of accounting firms and traditional business accounting that is going through a major overhaul is the concept of data—or the task of storing, handling, transferring, and accessing it. 

Coming a long way from using Microsoft Excel as a primary analytics and data storage program, accessing large pools of user information, trends, and industry knowledge can now be done with predictive analytics and structured and unstructured data. In this case, disruption has definitely been proven to be advantageous, as accounting firms and businesses alike can now make even more insightful forecasts with higher-quality data and greater accessibility. 

  1. Mobile computing will take the accounting industry by storm

In the smartphone-dependent age of today, it is nearly impossible to see anyone without a smartphone in their hands or pockets. It represents an opportunity that accounting firms can jump on. With the number of smartphone users reaching an all-time high year after year, accounting firms are now facing the pressure to adapt as well by offering their services through high-quality apps across a variety of platforms. For instance, your accounting firm can increase the value of its after-sales service by creating apps that enable clients to record expenses, manage accounts, and track financial data while working with your own system.

Final words

This year and beyond, accounting firms and businesses alike are expected to adapt to the ever-evolving technology age by making the most out of various disruptions in the accounting industry. If you’re looking to prepare your accounting firm or business’s financial functions for greater performance, play the industry’s disruptions to your advantage by taking our forecasts into mind!

If you’re looking for more accountancy news in the UK, visit our site today!

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