Over the last year, accounting businesses worldwide saw a continued shift towards digitalization and automation, as companies adapted to remote work and changing economic conditions. The demand for technology-based accounting solutions increased, as well as for virtual and outsourcing services. The pandemic also highlighted the importance of financial management and planning, leading to an increased focus on financial reporting and analysis.
Despite these changes, the overall demand for professional accounting services remained strong, providing opportunities for growth and expansion in the industry.
Here are top 5 trends and developments affecting the accounting industry worldwide:
There was a significant rise in the adoption of AI and ML in accounting and financial reporting. This was driven by the need for more efficient, accurate and timely financial reporting and the availability of new technologies that could support this goal.
The use of AI and ML in accounting and financial reporting involves automating tasks such as data entry, reconciliation, and financial analysis, which can reduce the risk of errors and increase efficiency. Additionally, these technologies can also help companies generate insights and make more informed business decisions.
This shift towards the use of AI and ML in accounting and financial reporting is expected to continue in the coming years, as companies seek to improve their financial reporting processes and make better use of the vast amounts of financial data they collect.
We have been witnessing a growing focus on sustainability and non-financial reporting in the accounting industry. This trend was driven by increased awareness of the importance of environmental, social and governance (ESG) factors in business and investment decisions, and the need for better information to support these decisions.
To meet this demand, accounting firms and organizations began to develop new reporting frameworks and standards to help companies measure and communicate the impact of their operations on the environment and society. This increased focus on sustainability and non-financial reporting also led to an increased demand for accountants with expertise in ESG analysis and reporting.
The trend towards greater focus on sustainability and non-financial reporting in the accounting industry is expected to continue in the coming years, as stakeholders demand greater transparency and accountability on ESG issues.
There is a significant increase in regulatory focus on financial reporting and corporate governance in the accounting industry. This trend was driven by several factors, including:
Overall, these factors have resulted in a heightened focus on financial reporting and corporate governance within the accounting industry, as companies seek to maintain investor trust and comply with regulatory requirements.
The 'always-on' business lifestyle created a massive demand for real-time financial reporting and real-time data analysis. This trend was driven by several factors, including:
These factors will continue to drive demand for real-time financial reporting and real-time data analysis, as companies seek to stay competitive and make data-driven decisions.
And finally, we have to mention the expansion of cloud-based accounting software and related services. The growth of cloud-based solutions was driven by the increasing need for flexibility and accessibility in financial reporting, as well as the desire for lower costs and improved scalability.
Cloud-based accounting solutions allow companies to access financial information from anywhere, at any time, and collaborate with their accounting team in real-time. Additionally, these solutions can also integrate with other business systems, such as client portals, invoicing, payroll, and project management, to provide a more complete picture of a company's financial health.
The recent expansion of SaaS (Software as a Service) offerings also led to an increased demand for accountants with expertise in these solutions and the ability to provide cloud-based accounting services to their clients. The trend is expected to continue in the coming years, as companies seek to improve their financial reporting processes and better manage their financial data.
Here are 10 examples of cloud-based accounting software:
Most accounting firms are benefiting from the operating synergy of accounting software and client portal software, both cloud-based. For instance, Clinked is a cloud-based client portal platform that can be used by accountants alongside their existing professional software to improve client service and communication. Clinked can help your firm with the following:
If you would like to find out more about how Clinked can improve client interaction and data security at your firm, please contact us to book a free demo.