As an accountant, you know that change is inevitable in your industry. Whether it’s updating tax codes or new disruptive technology, it’s vital to stay on top of the trends in your industry. If you want an learn about the accounting trends in the coming year, you’re in the right place.
In this guide, we’ll cover ten accounting trends you’re likely to encounter in 2023. That way, you can begin incorporating them into your practice. Let’s dive in!
Table of Contents
1. Increased Automation
Accounting features a lot of repetitive tasks. So it shouldn’t come as a shock that automating many of them is at the top of a lot of a firm’s lists of things to do. The specific tasks being automated will depend on the accounting company. But some common ones include:
- Approval workflows
- Bank reconciliation
- Journal entries
- Inter-company consolidation
- Revenue recognition
- Lease accounting
Implementing automation can be challenging. But it’s important to remember that the ROI is high. As such, it should be a goal for every accountant reading this.
2. Data Analysis Tools
Data analysis tools are changing the way that accounts interpret data. In the past, accountants were so busy reacting to financial data. Now, with these new tools, they can use the data to predict financial situations before they happen.
This will allow many accountants to target high-value niches that they couldn’t before.
3. Artificial Intelligence
Artificial Intelligence is highly tied to the automation trend. It allows machines to automate mundane processes that require repeated actions.
When a human does this, it can numb their brain, which makes them prone to mistakes. When AI does it, it’s quick, flawless, and affordable. Just ensure you’re using AI software from the correct type of company.
Want to learn more about how TaxRobot’s software utilizes artificial Intelligence to automate tedious processes? Contact us today, and we’ll tell you all about it.
4. More Remote Work and Collaboration
The pandemic introduced many people to remote work for the first time, and few people are looking back. In fact, over the past two years, the amount of people working from home has tripled.
The good news is that accountants aren’t excluded from this remote work boom. Technology like cloud-file sharing, e-signatures, and video conferencing means that many accounting job roles can be performed entirely at home.
5. Evolution of Job Roles
As we mentioned, automation and AI are top trends within accounting. As such, the job role will evolve as more mundane tasks become obsolete.
That’s why many accountants are prioritizing leadership and emotional intelligence skills over technical ones. That way, they’re better prepared to face the wave of automation.
6. Changes in Tax Legislation
There are changes to tax legislation every year. However, the pandemic introduced many changes throwing accountants through a loop.
From the 2022 Consolidated Appropriations Act to the updated R&D amortization changes, there is no shortage of changes to be aware of. Because of this, we can expect accountants to spend a lot of time educating their staff on these changes.
7. Environmental, Social, and Corporate Governance (AKA ESG)
ESG is expected to be on everyone’s forecast in the coming months. Why? Because new federal regulations are expected to pass surrounding these areas.
Mandated disclosures surrounding your greenhouse emissions and supply chains will likely need to be disclosed in the coming years. What’s more, many investors are asking accountants to prioritize diversity in the workplace.
The global outsourcing market reached a staggering $92.5 billion in value over a decade, and it’s not hard to see why. Both small and large accounting firms can benefit from outsourcing.
Small firms get access to cheap labor that they can quickly bring out without adding expensive staff. Large firms gain access to a global pool of talent and skillsets that might not be available in their area.
And with the advent of cloud computing and remote work, it’s never been easier to implement.
9. Improved Software
As an accountant, you’re often dealing with vast amounts of data. Accounting software makes it easy to sort through this data.
But to do it effectively, you will need an enterprise resource planning system. This will allow you to integrate all of the financial data that you work with into whatever software you need.
Our AI-powered R&D tax credit software makes it easy to save time and money. Check out here to see if it’s the right product for your accounting needs.
10. Data Security
In an increasingly digital world, cyber attacks like data breaches are becoming more common daily. The FBI reports that nearly 800,000 internet crime reports are filed each year.
Unfortunately, accounting firms are often the target of these attacks because of the sensitive financial information that they deal with.
Because of this, we can expect many accountants to update their network’s security infrastructure.
Cybersecurity training will also be a must down the line. It could compromise the entire business if your employees don’t know basic cyber safety, like not clicking on suspicious emails or links. So, we expect to see a lot of data security training in 2023.
The Importance of Following Accounting Trends in 2023
Over the past two decades, the accounting industry has faced a massive shift due to new technologies, strategies, and workplace culture changes. In 2023, many of these changes are reaching a breaking point.
These days, if you aren’t following these trends closely, then your business is actively suffering. So, don’t resist the changes!
Instead, please pay attention to how they can both make your job easier and save you money. That way, you’ll still be in the accounting industry for decades to come.
Related: Tax Credits for Hiring Veterans: How to Qualify