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 to 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 2024. 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
- Depreciation
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 accountants 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 performs mundane processes, it can numb their brain, which makes them prone to mistakes. When AI does performs these same processes, its quick, flawless, and affordable. Just ensure you’re using AI software from the correct type of company.
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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
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 (AKAESG)
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.
8. Outsourcing
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 skill sets 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.
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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.
10. Data Security
In an increasingly digital world, cyber attacks like data breaches are becoming more common daily. The FBIreports 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 required in the future. 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 2024.
11. Blockchain Technology in Accounting
Blockchain is swiftly becoming a pivotal element in the world of accounting. This technology, celebrated for its robust security, clarity, and immutable record-keeping, has the potential to fundamentally alter the methods of documenting and verifying financial transactions. Accountants are now looking at a future where blockchain technology reshapes their approach to tasks such as audits, regulatory compliance, and the monitoring of assets. The trustworthiness and precision afforded by blockchain’s decentralized system play a significant role in minimizing the risks of fraud and inaccuracies in financial data. As blockchain technology gains traction across various industries, it’s essential for accounting professionals to understand its mechanisms and potential impact to remain competitive.
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12. Increasing Use of Mobile Accounting
The trend of mobile accounting is rapidly transforming the relationship between accountants and their clients regarding financial data management. The widespread use of smartphones and apps has shifted many accounting tasks to be performed on mobile devices. This shift to mobile platforms allows for immediate access to financial information, faster response to client inquiries, and the execution of various accounting tasks like invoicing and expense tracking remotely. Accountants are now adapting to this change by integrating mobile-compatible software and applications, catering to the rising need for mobile-based financial management solutions.
13. Client Advisory Services Growth
There’s an increasing trend in the demand for client advisory services within the accounting profession. This shift signifies a transition from traditional accounting roles to more advisory-focused ones. Accountants are now more frequently called upon to offer strategic counsel regarding financial planning, business growth, and risk management. This change signals a requirement for accountants to broaden their expertise, encompassing skills in analysis, advisory, and technology, to meet these evolving client needs. As businesses seek more than just compliance services, accountants who can offer valuable insights and strategic guidance will be in high demand.
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14. Increased Demand for Cloud-Based Solutions
Cloud-based accounting systems are becoming more prevalent, thanks to their adaptability, scalability, and cost efficiency. These systems provide accountants and their clients with seamless access to financial data and tools via the internet, eliminating the need for installing and maintaining software on individual devices. The convenience of cloud-based solutions is reshaping how financial data is accessed and managed, offering a more streamlined and efficient approach to accounting practices. The cloud facilitates real-time data updates, collaboration, and secure storage of financial information. Accountants must embrace these cloud-based tools to provide more efficient services and meet the evolving expectations of tech-savvy clients.
15. Focus on Personalized Client Experiences
Personalized client experiences are becoming increasingly important in the accounting industry. Clients expect tailored services that cater to their specific business needs and financial goals. This trend requires accountants to have a deeper understanding of their clients’ industries and challenges. Building strong, personalized relationships and delivering customized advice will be key differentiators for successful accounting practices in 2024.
16. Integration of Financial Planning Services
Integration of financial planning into accounting services is a growing trend, as clients look for a one-stop solution for their financial needs. Accountants are expanding their services to include financial planning and advice, encompassing retirement planning, investment strategies, and estate planning. This holistic approach helps clients make more informed financial decisions and provides accountants with opportunities to add value and deepen client relationships.
17. Emphasis on Sustainability Reporting
Sustainability reporting is gaining traction as businesses increasingly recognize the importance of environmental, social, and governance (ESG) factors. Accountants play a crucial role in helping businesses measure, report, and communicate their sustainability performance. This trend reflects a broader shift towards responsible business practices and transparency, and accountants need to be equipped to advise clients on ESG matters and sustainability reporting requirements.
18. Growing Importance of Cybersecurity
Cybersecurity is a critical concern for accountants, given the sensitive nature of financial data. As cyber threats evolve, accountants must stay vigilant and implement robust security measures to protect client data. This includes regular security audits, staff training on cyber threats, and adoption of secure technologies. Staying updated on cybersecurity trends and best practices is essential for maintaining client trust and safeguarding financial information.
19. Expansion of Financial Technology (FinTech) Solutions
The expansion of FinTech solutions is reshaping the accounting landscape, offering innovative ways to manage financial transactions and processes. These solutions include automated payment systems, digital wallets, and blockchain-based platforms. Accountants need to keep pace with these technological advancements to offer clients the most efficient and cutting-edge financial solutions.
20. Increased Regulatory Compliance Demands
Regulatory compliance demands are becoming more complex, with new accounting standards and financial regulations being introduced. Accountants must stay abreast of these changes to ensure compliance and avoid legal implications for their clients. This trend underscores the need for continuous education and adaptation to the ever-evolving regulatory environment in the accounting sector.
The Importance of Following Accounting Trends in 2024
Over the past two decades, the accounting industry has faced a massive shift due to new technologies, strategies, and workplace culture changes. In 2024, 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. 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.