3 Game-Changing Accounting Trends to Look Out for in 2023
Here are three accounting trends to look out for in 2023.
The accounting world has changed significantly, with technology and other market forces leading the way. Shagun Malhotra, Founder of SkyStem LLC, provides insights into the accounting trends that will take off in 2023 to help businesses build stronger financial teams.
The Cambridge Dictionary defines an accountant as someone who keeps or examines the records of money received, paid, and owed by a company. However, this definition drastically underrepresents their importance: A company’s bottom line, growth, and success depend on how well finance teams analyze, report, and deliver actionable information.
Therefore, by making 2023 the year you strengthen your accounting department, you could gain a competitive advantage in the marketplace and stand out from the crowd. But remember that today’s accounting landscape differs from a few years ago. This means that using outdated tools will not help you achieve this goal.
Instead, you must stay on top of the latest developments in the industry and understand the impact of ever-evolving technology on accounting. Only then can you find the most effective way to build a strong finance team that can lead to a thriving business.
Now’s the time to break down three accounting trends that are bound to take off in 2023.
Automation of Accounting Will Be Key for Success in a Hybrid Work Landscape
Is your finance department still operating from the office? You might want to give it a second thought: 60% of employees opt for remote work since it boosts productivity, reduces costs, and mitigates burnout. It is no wonder remote work trends will increase into 2023. So, if companies want to improve employee satisfaction and retain talent in the upcoming years, offering flexible and hybrid opportunities to their accountant teams is non-negotiable.
The good news is that, according to a report, accounting and finance teams are at the top of the list of careers that could easily start working remotely. This is also an indication that automation of accounting processes is the most effective and best way forward.
Automation tools improve data visibility, allowing everyone in the organization to access information seamlessly and know what is happening with the client accounts and records in real time. This way, companies can ensure that no matter where they are, their financial teams are equipped with everything they need to deliver quality work, which is core to a fully-functioning remote work model.
Additionally, automation of repetitive, time-consuming accounting tasks such as data entry, follow-ups, and approvals reduces errors and, most importantly, removes the necessity of in-person collaboration. As a result, accounting department members can manage their time, increasing efficiency: More than 80% of employees agree that better time management can improve focus on tasks, and 91% of them highlight that it can boost productivity.
See More: Why Hybrid Work Is the Solution for Innovation in Today’s Work Landscape
As Accountants Become Decision-Makers, They Will Rely on Data Analytics More Than Ever.
Gone are the days when accountants only prepared budgets, calculated projections, and handled taxes. Nowadays, they communicate with clients and financial backers, develop strategies, assess investments, and assist leaders in making critical business decisions. And to perform more effectively, finance professionals harness the power of data analytics.
Traditionally, financial reports gave weekly, quarterly, or annual statuses. On the other hand, data analytics can provide accountants with real-time database updates, allowing them to be more proactive than reactive to business needs.
Data analytics enables accounting professionals to turn unstructured data from social media, web content, or emails into meaningful information. This way, they can unlock valuable insights, identify process improvements, increase efficiency, and better manage risk. For example, if your business is experiencing sales growth, which does not reflect in profit figures, data analytics can allow you to pinpoint the problem. After which, you can develop more effective strategies to boost profitability.
And what’s more, accountants can use data analytics to explore consumer spending habits and behavior. Therefore, they can identify patterns and forecast trends, designing better marketing tactics and growth plans.
See More: Data Analytics in Manufacturing: Could Deployment Be More Challenging Than Rewarding?
Businesses Will Implement Cloud-Based Accounting Systems
From security and tax ID numbers to earning reports and credit card details, accounting systems contain highly confidential information about a company, its clients, and its employees. Therefore, a data breach or leak can threaten business growth, customer retention, and brand reputation.
Since more businesses have gone virtual, there has been an increase in cyberattacks—and cyber threats show no sign of slowing down in 2023. It is crucial to remember that every organization with an online presence—regardless of the size and industry—is a potential cyberattack victim. This is where cloud-based accounting systems come into play.
Cloud computing delivers databases, storage, software, and servers. It is a powerful tool in the battle against cyberattacks as cloud-based accounting systems offer robust security and a safe place for data while also receiving regular security upgrades and testing.
Furthermore, cloud-based solutions allow companies to set rules about who can access their client’s data, files, and workflows. Thanks to having strong internal controls, businesses can add another layer of security against data theft, fraud, and malicious cyberattacks.
The bottom line is: The business world is constantly changing, but accountants remain the backbone of an organization. That being the case, leaders must stay updated with the latest developments and encourage their finance teams to adopt modern tools for more productivity and a competitive advantage in the market.
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