3 Accounting Trends for 2020 and Beyond
One thing you can be sure of: Accounting in the next decade will look a lot different than it does right now.
Emerging trends based on digital technologies, tools, and solutions will change how you do business in 2020 and beyond. It’s critical to keep an eye on what’s new, so you know which trends are worth adopting, which ones aren’t right for your business, and when to make updates that could make your business more efficient, productive, and competitive in the new decade.
Trend #1: More automation of more accounting processes
No doubt you’ve already automated some of your accounting practices, but expect to see more tools and technologies coming on the market to help you automate even more processes, and to do so with less difficulty than in years past.
At the cutting edge of accounting automation is robotic process automation (RPA), a system that manages all the transactional data flowing from IT systems and applications. We’ll be hearing more about RPA in the years to come, but in the more immediate term, take a look at cloud-based accounting software solutions like Sage Intacct that make it easy to automate basic functions like invoicing, accounts payable, and reporting.
Trend #2: Deeper insights with artificial intelligence
The rise of artificial intelligence (AI), which allows computers to make predictions and “learn” over time how to adapt to changing situations, is another trend worth following. You’re not going to go out and buy “AI,” but you will find more and more opportunities to implement software solutions that incorporate AI to perform certain functions.
For most firms, the advantages of implementing AI-based solutions are similar to the advantages of automation: greater productivity and efficiency. Look for AI-based financial solutions in 2020 and beyond that can help you streamline data entry and data analysis projects—that’s low-hanging fruit. Also, keep an eye out for AI-based software that can scan financial data and report anomalies far faster than can be done by people or traditional software.
Trend #3: Breakthroughs in blockchain
We’re still at the “What the heck is blockchain?” stage right now, but expect to see blockchain emerging in the years ahead as a significant force in accounting and financial management.
Basically, blockchain creates a single ledger that allows users to access identical information in real time; when changes are made, everyone sees them. It thus has the potential to reduce the cost of maintaining and reconciling ledgers, and it could provide certainty as to the ownership and history of assets.
By eliminating reconciliations and providing certainty about transaction history, blockchain could also streamline audits, and free up employees to focus on planning and valuation instead of recordkeeping.
Prepare for your future
Insero & Co. is a public accounting firm with decades of experience providing outsourced and co-sourced accounting services to businesses throughout New York State. From software implementation to business consulting, our experts are available to help you understand the latest trends that could help your organization be more efficient and productive.