With the entire global economy facing changes, uncertainty, pandemics, and new technological advancements, 2020 has been nothing short of rapid. Keeping this in mind, what does 2020 have in store for the bookkeeping service providers and accountants? There is no shortage of innovations, digitalization, and exciting changes to the industry, so CPA firms might feel overwhelmed, but there is nothing to worry about. With technological evolution comes easier solutions to accounting problems. This has given rise to the below-mentioned digital accounting trends that will affect CPA firms, bookkeeping service providers, and accountants all over the globe.
6 Digital Accounting Trends for 2020
1.Digital Revolution
With everything shifting online, accounting services are no exception. The increased digitization of tax, mandated by the governments worldwide, has forced CPA firms to offer onlineaccounting services. Considering the advent of the digital revolution, several accounting practices have to be re-engineered for the online platform, and rather than seeing this as a challenge, bookkeeping service providers should see this an opportunity to expand their horizon and offer accounting services all over the globe
2. .Journey to Cloud Accounting
By 2026, it is expected that the global market for accounting software will expand exponentially. This makes it pivotal forbookkeeping service providers to begin their journey towards cloud accounting. What’s worth noting is that with the use of cloud accounting, the overheads of running an office have decreased significantly and in the upcoming years, it will transform the way accounting firms respond to the changing client demand. This also leads to an increased reliance on on-premise integration along with cloud accounting. Traditionally, many bookkeeping and accounting services were documented manually in files and stored away in a cabinet, but with the advent of cloud accounting, the data is stored in an online server with extreme security measures, making extraction, reviewing, and documentation easier.
3. The Advent of Artificial intelligence
In the upcoming years, artificial intelligence will become more integral to the accounting process and systems in almost all industries. The trend of machine learning, deep learning, and artificial intelligence is already increasing behind the curtain, and in the coming years, this trend is expected to take the centre stage. This makes it important for CPA firms and bookkeeping service providersto shift their focus from data entry and reconciliation tasks to obtaining more accurate data with the help of these newly born technologies.
4. Changing Roles of the Accountant
About a decade ago, accountants were expected to manage and produce financial data on the forefront of the business. But with technology on the rise, most of the accountants and bookkeepers tasks have been automated, leaving them time to pursue advisory and consultancy roles in organizations. This helps organizations make better use of CPA’s and accountants in financial decision making.
5. Accounting Apps are on the Rise
With technology like artificial intelligence and machine learning taking over, it wouldn’t be a surprise that CPA firms and bookkeeping services start using accounting apps to manage their work and communicate with the clients. There are several apps available for time management, data conversion, and data presentation that are currently being used. And technology has not stopped here, it has introduced applications to boost various accounting tasks such as bookkeeping, tax preparation, VAT submission, etc.
6. Businesses Will Hire More Online Accounting Services
With the trend of technological advancements flooding the markets, businesses will move towards online accounting services rather than having their financials being stored in paper files and cabinets. Technological breakthroughs have made it possible for accountants to serve clients from all over the globe using cloud accounting software, wherein the data is stored in a central server, producing error-free data. Trend research shows that most businesses will decide to hire online accounting services that have a world-wide reach rather than those limited to a particular city or area.
Are You Doing Enough To Keep Up With the Changing Technology?
During the last 10 years, technology has taken a turn and has accelerated at such a rate that has transformed the entire global industry, including the accounting profession. And, with this rate of progression, it has become extremely vital for businesses to consider shifting to online accounting services. New tools, new software, and new roles of accountants – are you ready to be a part of the change? If so, hire an online bookkeeping service provider for your firm and be a part of the change.
