With the development of technology, the accounting sector is moving quickly. At Accenture, a consulting business, for instance, “automation, minibots, machine learning, or adaptive intelligence have become part of the financial team at fast speed,” according to Forbes.
While intelligent technology might seem like a recent development, many businesses already use simple automated accounting procedures. According to Forbes, accounting jobs and procedures may be automated or made more efficient: supplier boarding, accounts payable, audits, procurement, buying, expenditure management, close processing, and customer inquiries.
By affecting the kinds of occupations that will be accessible, intelligent technology is influencing the future of accounting. Humans will conduct more from the analysis as more repetitive tasks are handled by sophisticated technologies, acting as the vital connection between customers and the data. The accountant’s work and need for accountants will continue to be impacted by technology in the future.
What is accounting?
Accounting is documenting, organizing, analyzing, and summarising a business’s financial transactions. An organization’s management may better grasp its financials with the help of proper accounting. They might use this information to manage their upcoming expenses effectively to maximize profit. Numerous Free certificate courses are available to assist you in studying the subject and comprehending its fundamentals.
Future need for accountants
- The outlook for accounting professionals is often associated with how well the country’s economy is doing; when the economy improves, more accountants, auditors, or other professionals who manage financial records are generally needed. Globalization and increased regulation will influence the need for accountants in the future.
- The employment of accountants and auditors is expected to grow by 4% between 2019 and 2029, which is approximately average for all occupations, according to the U.S. Bureau of Labor Statistics. Due to its competitive salary and good work security, accounting is placed No. 13 on U.S. News & World Report’s list of the World’s Best Jobs for 2021.
- Even though many accounting procedures are now computerized, Accounting Today claims that technology will only partly replace the necessity for accounting specialists. The difficulties that accountants address on behalf of their customers “cannot — and will never be able to — be handled on its own,” according to the trade newspaper. The truth is that accountants will have the opportunity to learn more advanced skills in the future, allowing them to function more as company consultants and strategic partners than merely financial experts.
Our Top 5 Predictions For The Future Of Accounting In 2023
Remote work will remain popular.
According to a recent Stanford University research, 42% of the American labour force currently works from home full-time, and 98% of those people want it to stay that way. Therefore, this is not a trend that will go away.
Zoom meetings will always be the same as in-person meetings, but there are undoubtedly many long-term advantages to working remotely for big and small companies and accounting firms. You may reduce business expenditures by spending less on items like real estate. Because distance is no longer a barrier to applying for jobs, there is a larger pool of applicants. Enhanced employee satisfaction & retention and better catastrophe readiness are both present.
Continued Cloud Migration is Coming
Centred on data transfer to the cloud. It’s not just you. Weis also predicts that you will be one of many companies to make the crucial switch to cloud computing.
Cloud computing has been adopted gradually but steadily over the last ten years. The COVID epidemic, however, has expedited the adoption of cloud computing by at least ten years, as it has with so many other things. Cloud computing makes it simple to access information instantly from any location at any time on any device.
For various reasons, businesses will keep moving their accounting software, platforms, and other applications to the cloud in 2022. With cloud computing, mobility is greatly increased and can now be accessed from any device. Excellent security, process automation, enhanced ease of recovery, and better collaboration & scalability are all implemented through cloud computing.
The Future of Accounting Projects an Increase in Accounting Outsourcing
Businesses have seen the effectiveness of remote workers. In 2022, there will be a spike in demand for accountants due to an increase in demand for accounting work when combined with the cost savings associated with outsourcing.
According to Weis, outsourcing may be an excellent option for businesses to adequately staff their accounting requirements while keeping or reducing their present expenditures.
Outsourcing also reduces some of the skill shortages in accounting in the United States. While there has been a decline in accounting degrees and professionals in the United States, there has been a growth in similar fields for human accountants in nations like the Philippines and India since they are prominent and sought-after occupations there.
Cost-cutting and increased automation will be priorities.
Cost reductions will be the game’s name for CFOs as we potentially enter a recession here in the U.S. Although this is often the case, the COVID epidemic has given cost control even more of a reason to exist.
Businesses and their accounting professional(s) will want to hold onto as much cash as possible, boosting the drive to automate. And automation is a fantastic technique for reducing costs.
Take a deep breath, however, before you start screaming that automation will result in job losses. Automation can eliminate the repetitive, transactional work that requires accountants to upgrade their skills and concentrate on analytical and soft skills. This frees them up to focus on developing their problem-solving, leadership, and interpersonal skills while leaving the other time-consuming tasks, like data entry, to be handled by artificial intelligence.
Data Will Be Center Stage in Accounting’s Future
Many businesses currently make significant investments in big data and automation but need to see that what is needed are the people and procedures. Even with the most powerful machine learning solution and the most reliable data in the world, you will only gain from your data if you have the necessary analysts and systems to interpret it.
Companies enjoy the rewards of aligning their workforce with their analytics objectives. They see general cost reductions, faster decision-making, and ongoing progress in all business sectors.
Although we do not own a crystal ball, and 2023 is only around the horizon, we are convinced that these patterns represent the industry’s direction.
The same is true of accounting. The field has evolved beyond simple accounting and payroll, and like its companion procurement, it now plays a more strategic role for forward-thinking organizations. Although some experts believe that accounting won’t have much of a future in the digital world of the future, technologies like cloud-based data management, process automation, and sophisticated analytics are positioned to elevate accountants in novel and powerful ways further.
Learn or explore accounting by joining Free online accounting courses available.