67% of accountants believe that the industry is more competitive than ever. So, what is in store for the accounting industry in 2023?
It should not come as a surprise that the accounting industry is expected to undergo significant transformations in 2023 due to technological advancements. So, what adjustments can you anticipate in 2023? see more from Training Link
The fact that 67% of accountants believe their field is more competitive than ever before may surprise you. Additionally, 83% stated that their customers are demanding more from them than they were five years ago.
To remain competitive in the future, accountants will need to offer even more value to their clients, according to these figures. As we entered the new year, embracing some of the upcoming trends will assist you in becoming more competitive.
In 2023, accounting is expected to change in 3 ways.
Automation
Currently, automation accountants are accustomed to this trend. In 2023, automation will only begin to gain popularity. It frees accountants up to concentrate on data analysis rather than performing data entry tasks.
Bill payments and journal entries are two examples of accounting tasks that can be automated in about 86% of cases. Technology for automation also has a high return on investment and can be paid for in as little as six months!
Automation has arguably the greatest benefit for auditors. Document retrieval and transaction accuracy verification account for the majority of their manual labor.
Most of that can be eliminated by automation, which also highlights risky transactions. Automation enables auditors to carry out a more comprehensive audit and present a clearer picture of business conduct.
Analytical Focus
Automation significantly alters the duties that accountants are expected to perform. Record keeping and data entry have continued to become simpler and more accurate thanks to digital technology. Now, businesses want accountants to use analysis to provide useful insights.
There is now more trustworthy information available to accountants than ever before. The industry will continue to use analytical tools to evaluate previous performance into the year 2023.
To estimate future financial figures, accountants will be required to perform more predictive analysis in the future. Leaders in businesses want to know how to achieve their short- and long-term objectives at their best.
Business leaders and investors can gain a better understanding of the organization’s financial health by utilizing the new, robust data that accountants can analyze.
Accounting firms can benefit from accountants’ consulting services now that analysis has replaced data entry. For instance, accountants may no longer be accustomed to entering invoices. But they might be able to look into ways to cut costs on materials or cut out expenses that aren’t needed.
Accountants can become trusted business advisors with innovative, forward-thinking ideas, not just for their manual data entry.
Cloud Accounting
More than 75% of small businesses will use cloud technology exclusively. Cloud-based accounting systems are great for small and medium-sized businesses because they are much less expensive than other options.
Cloud computing is still frowned upon by some businesses. The reality is that the majority of businesses are already using cloud technology without even realizing it. Cloud technology has become a regular part of business processes in a variety of ways, including email and document storage.
By adopting cloud-based accounting systems, accountants can contribute to industry advancement. Because transactions are stored electronically, using the cloud makes it possible to access information at any time and from any location.
The company saves money because it keeps the need for on-site storage to a minimum. However, as cloud technology develops, businesses with a lot of data may still be required to store it locally.