The accounting industry has been undergoing massive changes in several ways – the way businesses operate, the way accountants use technology to gain an edge, and the way accounting firms win a grasp over changing trends, laws, and regulations. In short, the industry is evolving. As technology, laws, and global economic shifts continue to disrupt the markets, it becomes imperative for professionals to stay updated with the latest trends.
For accounting firms, compliance has always been at the core. Most modern firms have steered away from merely being accounting service providers to being advisors. However, most clients continue to seek their accounting partners’ help for technical knowledge. In reality, it is, indeed, the technical know-how of the firms that add the majority of the value. When your team can notify you about the changes in accounting, taxation, and auditing and help clients manage areas where they feel directionless, you are certain to gain their trust.
As technology and automation continue to become a key part of the industry, trends undergo a constant change. Most accounting firms, hence, have been undergoing a cultural shift that favors the new tech.
/In this blog, Finsmart Accounting – trusted for best outsourced accounting services – will share expert tips to stay updated and relevant in the current accounting market. Let’s start!
How to stay updated and relevant in the current accounting market?
Stay updated with the changes: Be it the new regulations or the recent changes in the reporting standard, for an accounting firm, it is important to have awareness of the latest developments in the field. Here are some ways to do that:
– Read industry news in any form. Be it print or digital, subscribe to the top publications that give information on the latest trends.
– Attend industry events. Conferences and summits led by industry leaders are a great way to know everything that’s happening around.
– Connect with industry professionals. They are always abreast with the latest happenings that can boost your growth.
– Keep your tech relevant. Technology is constantly changing and the use of the latest software and hardware helps you gain an edge over your competitors.
Use tech to your advantage: Now is the time to start using apps and software to automate repetitive and strenuous tasks. It helps the team focus on strategic projects. Here’s how you can stay updated and relevant with technology:
– Explore the constantly emerging tools. It will help you understand what works best for you and your clients.
– Automate tasks that take a lot of time off your team’s schedule. This helps the team work on things that matter and helps avoid unnecessary burnout.
– Keep your technology organized. Your project management tools help the entire team keep track of their tasks, avoiding important deadline misses.
Develop soft skills: Accounting is no longer about merely crunching numbers. Skills like good communication, collaboration, team spirit, empathy, and an inclusive culture have become increasingly important. Here’s how you can help your team develop the necessary skills that are extremely important in today’s accounting world:
– Organize training programs that help focus on these areas
– Conduct team events and extracurricular activities that foster teamwork and collaboration
– Make your team aware of the soft skills in everyday life
– Inculcate a sense of empathy among teammates
– Value employees’ physical and mental health and practice the art of listening
Connect with professional organizations: Connect with organizations like the Institute of Management Accountants (IMA), American Institute of CPAs (AICPA), and Financial Executives International (FEI). Getting associated with these organizations can help you network with other professionals, stay up to date on industry news, and access resources necessary for your firm’s development. Organizations relevant to your field usually organize events, and networking opportunities that ensure constant growth and evolution.
In today’s times, IMA is one of the most prestigious and relevant organizations. AICPA continues to be the world’s largest member association for CPAs. They comprise over 698,000 members, students, and engaged professionals across 188 countries and territories. FEI is another top organization for finance professionals with over 11,500 members.
Latest Accounting Trends You Should Keep an Eye for
Increased data security: Today, accounting firms and their clients share more information digitally. It becomes essential to protect both parties from cyber threats and other data security problems. To make sure this is effectively in place, start by ensuring that the employees have enough knowledge of data security. Use cloud-based software to scale within your budget.
Firms should also set up systems for two-factor authentication to gain sensitive data because both accountants and clients share confidential information. Focusing on data security helps keep everyone safe.
Accounting in the cloud: Accounting systems on the cloud have become the need of the hour as this allows access of information to relevant parties anytime. According to a report by Sage, 67% of accountants have agreed that cloud-based solutions make their work easier and better. Most accounting firms have made a conscious effort to shift to the cloud but smaller firms in particular, have encountered challenges like data security, complex integrations, system compatibility, etc.
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It is time for businesses to make a mature approach to cloud migrations, learn from their previous experiences, seek help from professionals if needed, and make amends accordingly. The first step to migrate is to check with non-core operations and then gradually migrate to core functions.
Offshore staffing: The problem of talent shortage in the accounting industry is no secret. Hence, accounting firms have to seek new techniques to get the talent they are looking for. How they look for candidates is one of the key aspects of the business. As technology improves and the world comes closer, offshore staffing has been gaining a lot of popularity in the industry.
This model is beneficial for the firms on several levels. It gives them the autonomy to choose a team of experts who are dedicated to their work without the hassle of training them. It also helps save costs and gives access to a global talent pool. With a high attrition rate in the market, offshoring helps teams scale without the constant pressure of hiring and rehiring.
Use of data analytics: Modern accounting clients want to know how they can make more money and give better service to their clients. This leads to the accounting firms acting as advisors. All of this depends heavily on the analysis of the available data. Efficient data analytics is not only key to measuring the success of a business, it also helps save time and money. Analytics help avoid incorrect decision-making and make amends soon.
Predictive data analytics is also a method adopted by accounting firms to set prices and make better forecasts. Despite the hurdles like difficulty analyzing the data due to a lack of professionals and outdated infrastructures, businesses are making progress in the right direction. Businesses that have been able to implement data analytics successfully have enhanced decision-making capabilities, operational efficiency, and competitive edge.
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Social media as a positive enabler: Accounting and social media seem estranged, don’t they? But in the field, networking has become key to the success of the firms. Post-pandemic, even traditional firms have been using social media to talk to potential clients. These platforms also act as a place to provide credibility to the business. With the increased involvement of social media, the accounting field is gradually catching up to the rest of the world.
Changing jobs of accountants: As accounting firms become more focused on data analytics, more accountants move towards advisory positions. The technology has been changing across the industry, which allows the firms to give clients better and more accurate information. Keeping up with the changing technology will become further crucial as businesses leverage it to support their clients and improve their services.
Staying updated with the current accounting industry: Endnote
The world is changing rapidly and so is the accounting industry. Change is the only constant and that is the only way how accounting firms can continue to remain relevant. While advanced technology and automation are rapidly taking up the space around, the human touch remains irreplaceable. The sync between cutting-edge tools and skilled professionals is key in navigating through accounting complexities and ensuring financial compliance.
Have limited resources and are struggling to keep up with the changing accounting industry? You might need to outsource your accounting practice. Talk to our experts at connect@finsmartaccounting.com.
Also read:
Best payroll software for small and mid-sized businesses
Accounting cyber security measures for 2024
Effective cash flow management strategies
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Maanoj is Co-founder & Director of Growth Strategy & Alliance at Finsmart Accounting. He is an Outsourcing Expert, a People Champion, and a Dynamic Leader with strong Business Strategy and Scaling-up experience. He has incubated businesses, sold & exited ventures; helped build strong enterprises in very diversified verticals like Fintech, HR & Consulting spaces in various CXO capacities over the last 20 years.
