According to a report by Sage released recently, 67% of the accountants believe that their profession is now more competitive when compared to past years. 83% say that their clientele today has higher expectations from them if we compare to the conditions five years back.
Technology has transformed every department of the professional world, whether it is HR, finances or accounting. Running a business without these advancements is an arduous task.
With increasing customer demands and a growing need for real-time services, the accounting industry has observed several changes. Some of these changes will be highlighted and given more impetus in the coming year.
Let’s discuss these upcoming trends in accounting.
With technology at our disposal, collecting data is easier and simple. As a result, businesses expect accounting professionals to offer more information and insights on future trends. Thus, big data comes into action.
The usage of big data tools will increase in 2020, and we will see companies making better business decisions based on data-driven predictions. While computers will not be making our business decisions, big data will inevitably be directing us towards the right decisions.
Automation of back-end and repetitive tasks was trending in 2019, and it will only increase in 2020. If you look at the report released by McKinsey, it says that a bank was able to reduce 50% workload of its 900 employees who were working on back-end tasks.
Overall, automation is not only necessary to reduce repetitive tasks but it also improves the working efficiency of your employees. You can reduce the time spent on data entry and utilize your resources in more strategic roles.
Outsourcing accounting and other related activities such as payroll are increasingly becoming popular because it becomes easier, especially for small and medium-sized businesses.
By investing a small amount, small businesses can acquire expert services and reduce the hassle for an in-house team, and reduce the budget spent on accounting. So, looking at the benefits of outsourced accounting, more and more startups and small businesses will opt to outsource accounting in 2020.
Now, accounting firms offer value-based services. Earlier, this model included billing on the hours of work offered. This will change, and the market will shift towards value-based execution. It means that accounting firms will become advisors rather than service providers to aid the accounting tasks of clients, which will improve the ROI and profitability of clients.
There is a consistent shift towards social media in every industry. In 2020, we will see accounting firms following a similar path to reach out to new clients and offer them accounting services.
It would become easier for the clients as well, as they would be able to research the outsource partner and read their reviews before making a decision.
Adapting to some of these trends can be extremely rewarding for small, medium, and even large organizations. Take automation for example, it can reduce the workload of unnecessary tasks and help accounting employees stay focused on what is significant. Accounting is evolving and hence, it is now more important to stay updated with these trends.
OHI is a specialized finance and accounting outsourcing service provider with over thirteen years of finance and accounting outsourcing experience. We have strong functional outsourcing expertise in end to end accounting processes covering daily accounting activities, reconciliations, month end and year-end account finalization processes, employee reimbursements, payroll processing, management reporting and financial analysis.
OHI serves close to 300+ clients across USA, UK and Canada. We invite you to experience finance and accounting outsourcing through us.