The tax and accounting industry is constantly evolving, and in doing so, it sets high standards of rules and regulations for financial and audit procedures. Accountants and their clients are now dealing with each other with better means of technology, which helps in best-negotiated deals favoring each other. The accounting and tax industry has seen several trends develop over the years, which have both been challenging and useful at the same time.
Widespread use of the internet and technology has helped the accounting industry to reduce labor hours and other resources and direct their minds to strategic decisions, consulting, and management. Using the latest trends has helped both small and large organizations to get the right information at the right time at any place. The tax and accounting industry is adapting quickly to these trends by initiating extensive training programs and adopting a flexible working approach.
The accounting and taxation industry is no longer bound by its traditional methods and is quickly adapting to the changing technology and tech-driven solutions that are changing the face of this industry.
Some key trends that the Next-Gen accounting and tax professionals should monitor closely are:
Quick and complete integration of cloud-based accounting:
The remote working/ work from home (WFH) which earlier was a privilege for very few, is now a reality for all. Especially for professionals providing finance and accounting services. Thus, it is imperative to use cloud-based accounting to operate and carry-on business efficiently. Cloud-based technology offers clients flexible and complete solutions using in-house computing and on-site servers to capture data centrally and uses it to generate sales, take stock of inventories, collect client-related information, make online payments and reimbursements, etc.
Cloud-based accounting is easily accessible as long as there is internet connectivity and a device like a mobile or a laptop. This accessibility helps companies save a lot of time and money. The ever-growing trend of cloud-based accounting not only helps companies to manage their vast database of information but also enables them to generate quick and accurate financial data and reports. Such quick and error-free report generations help companies to stay a step ahead in the market by devising plans and strategies right from the comforts of their home.
Streamlining communications and workflow processes:
Technology is making lives easy by saving a lot of time and it can be used for productive purposes. The accounting and taxation industry has now begun relying on Tax Act, TurboTax, QuickBooks, Xero, FreshBooks, and such accounting software to manage their business transactions and finances.
Organizations are keen to use automated software which reduces their mundane jobs and gives them time to better their services and provide clients with value-added products and services. They are using automated accounting and tax-based software to streamline their work processes.
The accounting software is well integrated to pull the data and information provided into the system and helps the organization in documentation, communication, and collaboration. It is now quick and easy to communicate with suppliers, dealers, employees, and clients. Such ease of doing business and streamlining regular operations gives the much-needed competitive edge to anyone ready to embrace the new means of taxation and accounting.
Outsourcing the tax, accounting, and finance operations:
Outsourcing certain functions help an organization greatly. They save the resources they would otherwise spend on staffing and infrastructure, and, in return, they promise the organizations to be delivered with professional expertise and data integrity. Hence, even though organizations have a powerful urge to protect every data and information related to their financial transactions. Outsourcing the tax and accounting function is immensely beneficial to them.
The financial service providers offer organizations a wide range of solutions that best suit their needs. Organizations can freely choose which part of the tax and accounting function. They would like to outsource in case they need time to trust their outsourcing partner.
The outsourcing firms provide cost-effective customized financial packages and solutions providing quality results. They help organizations generate financial statements and periodic reports and also ensure that they adhere to all financial obligations and regulations to help organizations put their best foot forward.
Separating advisory and consulting services:
Organizations these days are actively seeking tax and accounting professionals who provide both consulting and advisory services. While consulting services provide organizations with immediate solutions to an issue at hand. Advisory services are providing clients with a long-term and ongoing business solution, creating a supportive relationship.
As technology is out in the open for one and all and not at a very great cost, organizations now need tax and accounting professionals for other roles including data analysis, risk management, improving efficiencies, and supporting the management in various strategic decision-making processes. Organizations have now understood that they cannot consider consulting and advisory services as a one-year role. In order to grow up the trajectory and reap consistent results, organizations now need to maintain healthy and long-term relations with their consulting and advisory partners.
The trust and understanding of this relationship help professionals to understand the client’s working style and organizational behavior to provide the best solutions for complicated business solutions. Accounting and tax professionals can help organizations by not only providing solutions to present and future problems, but they can be very handy in identifying any underlying issues and providing the most feasible solutions that can help the organization in the long run.
The tax and accounting industry is quickly adapting to new trends and now even more with the use of technology that is being extensively used to create better work-life balance in organizations.
Accounting and tax professionals are required to gain new skills and re-skill themselves to provide the best of services to their clients. As we move forward to the Next-Gen Tech-enabled work culture, it is important to partner with financial service providers like Diligen who offer a wide range of tax and accounting services. Diligen has a pool of professionals from various financial and accounting streams who use their knowledge, experience, and expertise to help clients stay a step ahead of their peers by ensuring that they follow the latest trends available in the market to the best of their advantage.