Accounting service providers across the world are adopting best practices in accounting and bookkeeping by every passing day. Businesses intend to capitalize on the wave of change. Hence, CPAs continue to search for newer technologies and efficient methods to maintain their finance for such businesses.
Newer accounting trends help accounting service providers identify the next leg for expansion, not just for themselves but also for their clients. The aim of CPAs is to find accounting trends for businesses to focus on growth rates of key producers and operate these trends at a global accounting level. Moreover, initiating new accounting trends offers a better understanding of working capital, capacity analysis, and marketing pricing.
So, if you as a CPA or an accounting service provider want to learn more about the best accounting trends in the world, we have listed the top 3 for you!
A recent report by Forbes suggested that the year 2020 will be focused on automating accounting practices such as banking, auditing, ledger maintenance, payroll, tax preparation, etc. Undoubtedly, there are various accounting trends that CPAs can see and implement through automation in terms of how accounting and finance firms work. Moreover, with current changes in markets, policies, and regulations – automation is a key trend for accountants.
Here are some of the common automation trends in the accounting field:
Cloud accounting is a new way of accessing the accounting software from a web browser without having to install it. It is also known as online accounting offers accessibility, flexibility, convenience, and efficiency.
Artificial intelligence is being used by many accounting firms around the globe, wherein a large volume of data is analyzed at high speed. AI can take on the tedious tasks of data entry and reconciliation to save time, eliminate errors, reduce liability, and accelerate the overall productivity of CPAs.
Blockchain technology has spread beyond its cryptocurrency and is touching numerous industries including finance. The new trend of blockchain allows CPA’s to record all accountancy-based data with transparency and immutability.
APP integration is another trend through which auditing and accounting professionals will be able to streamline financial reporting systems and pave the path towards an uninterrupted auditing process. One of the advantages of a good accounting app is it reduces human error, centralize accounting data, expand scalability, and ensure reliability.
Outsourcing accounting services is a practice followed by several business entities. With outsourced accounting services, companies can benefit through an experienced accountant and make use of high-end automated technologies at a great value. Companies can attain these services at a lower cost as well as save time.
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However, the recent trend of outsourcing operates in two-ways:
Company’s Accountant Outsource Accounting Services
A company’s accountant can take care of regular bookkeeping but managing all areas of accounting cannot be fulfilled solely. Hence, several accountants from SME’s and start-up companies outsource some of their tasks to accounting service providers – rather than hiring additional staff. While the company’s accountant supervises the duties, the accounting service provider takes care of all the services such as preparation of tax returns, payrolls, cash handling & forecasting, debt collection, payments to creditors, etc.
CPA Firms Outsource Accounting Services
One major difference between a CPA firm and an accounting service provider is that CPA’s focus on compliance, whereas accounting companies focus on supporting services. Hence, CPA’s through their financial intelligence can make informed decisions. However, they prefer outsourcing accounting services to maintain the overall cost efficiency that allows them to retain talent in the CPA firms.
Through outsourcing accounting services, CPAs provide flexibility with a variety of accounting software packages. CPAs also can control quality, reduce errors, complete their menial task of bookkeeping, have faster turn-around time, keep their prices competitive, and do so much more by outsourcing their services.
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Client serving is fundamental to every business and newer trends are innovated often to maintain the quality of service provided to the client. Accounting service providers ensure to communicate regularly with clients, ascertain to be proactive with the accounting tasks. And they build trust for a long-term client relationship.
Nonetheless, listed are the most recent trends that accounting companies across the world are embracing to take client servicing to the next level.
Shift in Paradigm
The accounting world is based on the principle of selling services. However, accounting service providers are shifting the paradigm by focusing on selling their true value – which is knowledge and advisory services for free. Accountants are offering free reliable consultation to clients on what businesses should be doing to grow, in a way gaining trust before they obtain the client.
Virtual CFO & Remote Assistance
A virtual CFO is a trusted business advisor who analyses financial statements and delivers actionable understandings based on those numbers. Currently, companies prefer having a virtual CFO, rather than having to hire one. Virtual CFO’s prove to be an affordable option and acts as an actual CFO by servicing clients remotely. Virtual CFO’s are playing a major role in client servicing by offering dedicated support and cutting costs. Moreover, through remote assistance businesses are severed at a better place.
Are you interested in following the latest trends in accounting? Speak to an expert from Diligen – the best accounting service provider.
At Diligen, we are a group of knowledgeable and qualified accountants, auditors and tax advisories, virtual CFO’s offering comprehensive tax management & accounting services in India, US, UK, Middle East, Australia, Canada, and several countries across the globe.