The future of the accounting industry is bright. Although COVID-19 has brought a lot of uncertainty to the world, it’s triggered some revolutionary new trends in finance and accounting. Here are a few expected, evolving trends for 2021.
Future Trends in The Accounting Profession
With COVID-19 changing the way business owners operate, the future of accounting processes is evolving, too. Financial institutions are implementing forward-thinking trends in 2021, making digital transformations by utilizing cloud-based accounting software and cloud computing methods.
Controller’s Group, Inc. keeps up to date with new trends in finance and accounting so we can help business owners and accounting professionals transition to new, modern accounting methods and processes. Here are a few future trends in the accounting profession you can expect to see in 2021.
The Future of Cloud Accounting
More than half of accounting professionals are turning to the cloud to make tasks, such as data entry and inventory management, easier in the future. The growing popularity of working remotely is triggering this trend, with 67% of accountants standing behind cloud computing to carry out future roles and actions. Although transitioning to cloud-based accounting software has upfront costs, business owners believe that increased efficiency and easy accessibility outweigh the migration fees associated with the system. Accounting experts find the cloud appealing because of its ability to manage big data with ease, allowing financial institutions to double down on detailed financial reporting and analytics.
Finance Industry Trends: Automation Accounting Services
Automating labor-intensive financial tasks improves outdated accounting services and processes. Accounting professionals are making better decisions and delivering innovative solutions to customers by relying on technology developments in artificial intelligence (AI) and Big Data to generate accurate forecasting models. A recent study published by the Association of Chartered Certified Accountants (ACCA) states that more than half of C-suite executives think automation will play a significant role in forming the future of accounting methods. You can generate reports with ease and complete tax returns with a click of your mouse. Consider depending on automation to complete your future accounting tasks.
The Importance of Data Analytics in 2021
A new trend in finance and accounting that’s expecting to rise to the surface in 2021 is the use of data analytics. Data analytics can help accounting professionals collect and analyze valuable financial data, determine operational inefficiencies, and create accurate forecast models. More small businesses are expected to take advantage of the sophistication of data analytics in 2021 to help them make critical business decisions. Since the importance of data analytics is becoming more evident, a higher demand for data specialists to interpret datasets within the financial services industry is expected in the future, too, allowing for improved regulations and protocols for small businesses.
A Finance Industry Trend in Outsourcing Accounting Functions
The sudden spike in working remotely is expected to trigger businesses to consider outsourcing accounting services. The trend will allow business owners to take on new clients, offer a broader range of services, and fill key skill gaps for technical projects. Businesses that experienced financial losses due to COVID-19 are expected to benefit from outsourcing accounting services rather than full-time, internal accounting professionals. More accountants are rebranding their services to appeal to larger firms, which is expected to make outsourcing accounting services more affordable and a rising finance industry trend in 2021.
Blockchain: A Powerful Finance Industry Trend
Blockchain refers to using a network of independent computers that record, share, and synchronize transactions into a ledger that cannot be changed. Accounting professionals are expected to benefit from Blockchain in the future due to its ability to align a transparent and trackable chain of events into a reliable database that can’t be altered. Business owners are expected to embrace Blockchain to accurately track the ownership of significant assets and establish a transparent perspective on internal workflow that stays within budget and maximizes operational efficiency.
Social Media: An Expected Finance Industry Trend
Business owners and accountants are beginning to realize how effective a well-planned social media strategy can contribute to their company’s success. Social media platforms, such as Facebook, Twitter, and LinkedIn, help businesses keep in touch with their customers. Accounting professionals can also use media platforms to keep track of competitors and industry trends. With about 77% of accountants already using social media for their business needs, various platforms are expected to be popular future trends in the accounting profession in 2021.
Count on Controller’s Group for the Latest Finance Industry Trends
Our team of accounting professionals makes it a priority to learn about new trends in the finance and accounting industry. Whether we’re learning about recent software trends or developing new, detailed questions to ask a new hire candidate, Controller’s Group, Inc. knows the finance and accounting industry like the back of our hands. Foreseeing what the future is expected to bring to the industry is our specialty. Our team researched what you should look for in the future when reviewing a candidate’s resume, the best way to attract employees to your business, and how COVID-19 will continue to impact the hiring process. We can help your company stand out from the finance competition. Whether you’re looking for temporary staff, direct-hire recruiting, or executive search solutions, our team of experienced professionals has the expertise and skills to help you find valuable employees to help you run your business successfully. Contact us today to learn more about our services.