Top 7 accounting trends to watch out for in 2021

Parul Saxena

Parul Saxena

Senior editor

Parul Saxena

Chief editor

Last updated: July 30, 2021

After the harsh 2020, it is essential to look forward to a new year full of fresh challenges and trends. Various accounting institutes are passionate about the use of trend analysis in accounting and discovering valuable lessons from tough times in order to stimulate progressive development.

Accounting has gone a long way, from manual bookkeeping with cash registers to touch and click on mobile devices. New trends emerge on a regular basis, setting the path for the future.

Nowadays, the accounting business is in the midst of a protracted boom, which indicates the industry’s steady expansion. The advent of new accounting technology has offered businesses several new opportunities, as well as some new problems.

Here are seven developing accounting trends that will have a significant influence on the accounting business in 2021. 

Top 7 Accounting Trends to watch out for

1. Cloud Accounting and Automation

Cloud accounting and automated accounting processes are the two most significant technical advances in the accounting sector of the previous decade. The need for such computerized accounting is increasing, accounting software solutions are changing on a daily basis, and this trend will only accelerate in the near future.

This is not surprising. Accounting and billing are changing as a result of the world’s embrace of automation. And for the right reasons.

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Accounting has long been a time-consuming, paper-based, and labor-intensive process. Despite the fact that spreadsheets and computer systems have mostly replaced cash registers, the procedure is still primarily manual.

Furthermore, human involvement raises the possibility of accounting mistakes. To get around this, accountants and internal auditors are turning to computerized accounting systems.

2. Data analysis

Accountants utilize data analytics to assist organizations in gaining useful insights from their financials, identifying process changes that might boost productivity, and managing risk more effectively. Accountants will be expected to provide value to business decisions made inside their companies and for their clients.

Auditors, for example, can transition from a sample-based approach to continuous monitoring, which analyzes and verifies considerably bigger data sets. As a result, there is less room for error, resulting in more exact suggestions.

Though analytics is not a new component of bookkeeping and accounting services, it has been around for quite some time. Nonetheless, improved and upgraded technology has made it significant, displaying financial performance in a new light and generating fresh insights.

3. Accounting for cryptocurrencies

There are various difficulties that accountants may face in practice for which no accounting standard presently exists; cryptocurrencies are one example. For example, because no accounting standard exists to describe how bitcoin should be accounted for, accountants must rely on existing accounting rules.

Let’s see the example of  Bitcoin. Because bitcoin is a type of digital money, it may appear that it should be treated like cash at first. Cryptocurrencies, on the other hand, cannot be called cash (currency). Bitcoins and other forms of cyber-currency are considered property for federal tax reasons. As a result, we may infer that accounting is exploding with a clearly new branch: cryptocurrencies.

4. Social Media as a business card

Social media has altered the workings of today’s corporate structure. Several sectors have embraced social media and are making use of it to generate website traffic, sales, raise awareness and so on. According to a recent survey, around 77 percent of accountants use social media platforms for their companies’ branding and marketing initiatives.

Social media can help you initiate and cultivate discussions with clients, prospects, and other business partners. It’s free, which makes it enticing, and it’s available online, making it handy and accessible. Once you start utilizing it for business, you’ll be represented on social media 24 hours a day, seven days a week.

If bloggers and IT specialists give ideas on how Post to Instagram from Desktop  or optimize your content, your accountant’s profile may serve as your business card and indicate why they need you. Make good use of it.

5. Freelancing

Many accountants waste time in their offices because they are finished with their task, but the contract requires them to stay there for fixed working hours.  They work in uncomfortable working seats and workstations, resulting in an unproductive work environment. To solve this challenge, several accountants and accounting companies have implemented a freelance work strategy. Fortunately, cloud-based free billing and accounting software solutions have enabled accountants to operate remotely and thus be fully in the office processes, checking from leave management to timesheets. 

6. Outsourcing

This is not a new trend, but it has recently become quite prominent in the market. Businesses have begun to outsource their accounting activities, including taxation in order to benefit from having a trained staff at their disposal to assist them in growing and expanding their firm. This method saves the company money on employment expenditures such as payroll, expenses, wages, training fees, and employee benefits. Thus, companies may focus more on what they are excellent at – developing their business – by delegating the number-crunching to their chosen advisers.

7. Artificial Intelligence 

Artificial intelligence technology is permeating nearly every business, including the accounting industry. Sure, automation and artificial intelligence are emerging accounting technologies that may help you by taking care of the tiresome and time-consuming chores.

However, one must consider if AI will totally replace their tasks and occupations. The solution to this developing issue in accounting is for experts to seek advisory or managerial positions. They can take on the duty of assisting firms in adapting to and using AI and other new accounting trends as they become more powerful and complex. 

Though AI helps, we must be careful when utilizing it. Sure, our computers may make the shot more appealing by using random shape generators and design templates, but the concept is in our hands. The same goes with accounting. 

Final Thoughts

These 7 Accounting Trends, however, are not the endpoint of the accounting industry prediction. Whether it’s remote work or the growing usage of online accounting software solutions, technology is playing a significant part in changing the accounting business. And it’s reasonable to assume that technology will continue to be the most powerful engine of change in the next five to 10 years.

With so many changes in accounting and other connected industries, solutions, ideas and trends are going to explode every single minute.

Parul Saxena
Parul Saxena is a writer and editor with experience in various genres of writing in various industries. A content creator who loves to write on the latest technologies and their impact on businesses and everyday life.

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