Accounting software is a crucial tool for any business. It helps a business manager run the business with proficiency and profitably. With the advent of cloud computing and automations, bookkeeping too has undergone a sea of changes over the last decade. Every now and then we witness changes happening in the global business environment. And thus, staying current with such rapid changes is a tough proposition.
In present times, innovations and technology have become an essential part of the accounting and bookkeeping industry. The new accounting facts and trends suggest that many things can now be accomplished by brief off-site meetings, and with a range of software options, one can have better visibility and accountability of business tasks. The recent trends in accounting have surpassed the outdated methods of financial management, lack of real-time data, and the basic desktop-based software as well.
A well-run accounting function can lay down the foundation of a successful enterprise, and if the correct strategies and practices are followed, your enterprise is always going to stay one step ahead of the competition.
Following are the key accounting trends of 2020 that can impact the entire accounting software industry:
1. Cloud Computing
One hot accounting trend that is not showing signs of slowing down is the technology of cloud computing. As per a study by North Bridge (venture capital firm), nearly 75% of IT managers and senior executives reported that they were using at least a single cloud-based business application.
What is attractive about the cloud you ask? A cloud approach is a powerful choice for companies seeking to outsource software and hardware support for minimising costs and focusing on core competencies. Web-based options also permit a simple extension of system access to branch offices and remotely active users. This facility for direct access to systems with only a web browser and consistent internet connectivity is helpful in another core benefit which is ability to use business systems and data, anywhere, any time.
Lastly, the subscription pricing model is turning out to be desirable for companies seeking to spread software costs over time and stay clear of bigger upfront investments.
Cloud-based technology is going to gain a stronger momentum in accounting trends in the current scenario and impact different areas of business now and in the future. With the advantages of shared resources, server run accounting software models and easily accessible financial information through the cloud will make accounting processes more efficient.
2. Complete Functionality
A study of modern accounting software reveals that they typically include many applications and modules that go beyond the conventional definition of an ‘accounting software.’ The current accounting software is likely to include functionalities for supporting manufacturing, inventory management, sales as well as other business domains.
Single systems additionally provide a consistent data set such that changes in one system are reflected in other systems, in real time. Apart from less repetition of work, a single data record can help enhance transparency and get rid of bottlenecks in multiple departments.
3. Online Support for Implementation
Accounting software, by nature, can be complicated. Thanks to this complexity, a user might sometime need extra assistance from technical specialists for proper configuration, installation, and support. But with the luxury of widespread broadband connectivity , a user is not restricted to a specific geographical location to seek assistance. This access to online support implies that the users have the option to choose from a variety of support options.
4. Mobile Accounting
The remotely located workforce is now a common occurrence in many enterprises. So, having mobile accounting applications can be helpful to ensure that team members can get a task done on the go. Mobile accountancy is necessary because automated documentation is gradually replacing paper-based invoices and payment receipts, and is being widely accepted as well. Therefore, incorporating automated mobile technology in your accounting processes can be a win-win situation for your valued clients as well as your team members.
5. Analytics and Reporting
There is nothing new about desiring to use data for guiding strategic decision making. But the marked emphasis on tools of business intelligence in accounting software is a new trend. It turns out that one can measure the impact of business analytics tools on the performance of business. The integration of analytic tools in accounting software can help users to create future strategies on specific issues such as where to invest, where expenses are higher than anticipated and how to curb them.
Moreover, enterprises are looking for features that could generate financial reports, such as balance sheets, cash flow statements, profit and loss reports, etc in a professional and presentable manner. Ultimately, this data is essential to make smart financial and management decisions.
With these new trends making their way into bookkeeping, accounting has surely stepped into its golden age.
As new technologies continue to transform how businesses run and function, sticking to traditional methods of accountancy practices isn’t a good idea. With volatile regulations, the need for strategic accounting, and increased influx of financial data, having excellent accounting processes was never more crucial.
Accounting is not going to be any easier in the future. Therefore, it is important to embrace new technology and new trends in accounting to enhance business efficacy. In the evolving business environment, adapting the right technological developments in accounting will surely contribute towards your decision-making ability and the overall success of your enterprise.