Emerging Trends of 21st Century That Are Shaping the Accounting Industry

Global financial crisis paved the way for the evolution of accounting. Because of this dilemma, businesses took the road of restructuring so they can recover from their weak performance and have learned to adapt to the constantly changing trends in the industry of finance.

  1. Accounting Trends are seen in 21st Century

According to the Bureau of Labor Statistics, they are expecting a bright future for accounting, since they projected an increase of 16% in job openings by 2016. Along with these, many new and emerging trends continuously change and shape the accounting industry, which provides more opportunity and efficiency for every firm. Here are some of these trends:

- Cloud Accounting

This trend recently created a buzz in the financial industry — Cloud-based technology. Also known as online accounting or cloud accounting, it involves the use of software that runs on servers which make you access your data no matter when are where you are, as long as you are connected to the internet.

- Implementing Social Media Strategy

Social networking sites have been very popular for years now, especially with Twitter and Facebook. This enables accountants to reach a wider audience, be able to maintain business relationships, and attract more potential clients at the same time.

- Automation

Internal Revenue Service (IRS) stopped providing assistance in person and over the phone since this year started. They opted for shifting their services online.

The said move was made to free up their employees and help taxpayers in dealing with various issues that are not easily resolved through other ways, like identity theft.

- Outsourcing

This is probably the biggest trend seen in the accounting industry as of the moment. Outsourcing enables a company, no matter what size it is, to reap lots of benefits from it as long as your goals and tools are aligned.

  1. Expected capabilities in online accounting software:
- Proper financial analysis

Online accounting entails analyzing data properly so there will be no errors in the calculation which might affect the business.

- Maximisation of capital

In the past, this term wasn’t known, but recently, even a layperson would have an idea of what it means and what actions should be taken. Maximizing the business capital needs careful planning along with other accounting trends.

- Trend Analysis

Trend analysis for the business and monitoring the external environment became easier because of innovation in accounting approach and methods. If you want to study the growth and changes in the accounting industry, it will now be very easy.

- Decision-making assistance concerning future

Current developments in the accounting industry help the business in making quick decisions which involve the future. It also aids in future forecasting which is done to avoid errors and ensure a smooth-sailing business.

- Error reduction and report generation

Commercial errors are reduced with the use of online accounting. Comprehensive reports can be generated easily thanks to online accounting, where past and present performances can be compared immediately and can be changed accordingly.

- Information tracking

Every detail related to accounts, income, transactions and expenses will be easily tracked thanks to online accounting. Accountants in Darlington can easily track information of their business thanks to software.

These accounting trends make the possibilities endless for every company who aims to achieve great returns. Knowing what pattern would work for your business is a must, so you’ll achieve a stronger revenue growth and be able to keep up with the ever-changing industry.

 

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Friday, 15 December 2017
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