The accounting industry has undergone significant changes due to growing challenges, talent shortages, and the global pandemic. In response, accounting firms have shown more willingness to adopt new technologies and transform their practice to remain competitive in the modern world.
Looking ahead to 2023, the accounting industry is increasing reliance on technology to improve mundane tasks like bookkeeping. Among accounting firms in practice, there is a high demand for bookkeeping software, along with payroll and Forecasting, Planning, and Analysis (FP&A) tools.
Around 19% of accountants are planning to add bookkeeping software to their operations in 2023, with larger accounting firms showing the highest demand at 31%.
Meanwhile, small and medium-sized firms reported lower demand as many have already outsourced their bookkeeping services, a move which has helped them to transition to new technologies.
Accounting Technologies and Bookkeeping Trends To Look For In 2023
With the rapid digitalization and advent of new technologies, bookkeeping practices have evolved dramatically. The traditional paper-centric approach has given way to digitization, offering more efficient and paperless accounting practices.
However, clients today have higher expectations and demand modernized solutions that can accommodate remote and hybrid work models. Therefore, accounting firms need to assess emerging trends and technologies to stay updated in 2023.
- Cloud Bookkeeping
Cloud Bookkeeping is transforming how businesses manage their finances by providing a myriad of advantages. Accounting firms and bookkeeping providers are increasingly adopting the technology for its convenience and efficiency.
Cloud bookkeeping involves storing and processing financial transactions on the cloud, eliminating the need for files and computer software. Users can access the data anywhere, anytime, simplifying the management of finances for businesses.
- Automation and Artificial Intelligence (AI)
Automation and Artificial Intelligence (AI) are gaining popularity for their ease of use and accuracy. AI has the potential to revolutionize bookkeeping and payroll, streamlining accounting processes. For example, AI can accurately record transactions in ledgers, reducing errors caused by human factors. This technology automates time-consuming processes, making them quick, efficient, and hassle-free.
- Use of Business Intelligence (BI) Tools
Financial management software equipped with BI enhances the productivity of accounting professionals while minimizing errors through automated data collection and analysis. With KPI determination from CFOs, BI software offers updated metrics through readily accessible dashboards.
As an instance, a cash flow dashboard can display KPIs, including accounts payable and accounts receivable turnover, days sales outstanding, quick and current ratios, and current cash conversion cycle, relative to historical periods.
These dashboards ensure continuous updates, freeing up accounting teams from manually compiling data which they can instead spend interpreting and sharing insights with business colleagues.
- Cyber Security
The importance of cybersecurity cannot be overstated in today’s digital age, especially for accounting firms. Cybercrimes are rampant globally, and it has become a crucial factor for businesses when selecting a bookkeeping partner.
Secure technologies like blockchain are gaining prominence in accountancy practices due to their inherent secure data structures that help keep critical financial information safe. To ensure secure bookkeeping, many accountancy firms opt to outsource bookkeeping services.
- Outsourced Bookkeeping
Outsourced bookkeeping services can provide accountancy firms with a sustainable approach that opens doors to a larger pool of talent. This approach enables firms to create capacity within their practice, allowing for better use of time and resources.
Top global outsourcing firms offer customizable solutions and multiple pricing models that cater to individual firm needs. With outsourced bookkeeping, your extended team can take care of core tasks while you focus on higher-value services, ensuring guaranteed time and cost efficiencies.
- Sustainable Working Models
Accounting firms have adopted various working models following the diverse crisis. Some firms shifted to remote work, while others embraced the hybrid model, which blends the benefits of both worlds. As the recession persists, these practices will face disruption, and several organizations are now returning to work.
Remote and hybrid models of work provide accountants with an opportunity to balance their professional and personal lives. Furthermore, outsourced bookkeeping services with offshore teams can contribute to sustainability.
Businesses that are keen on shifting their focus to working from the office should consider adopting an environment-friendly approach. This involves reducing plastic use in the office, training employees for sustainability, and much more. Consequently, outsourcing onshore accounting support services could be a suitable alternative for such companies.
Moving Forward
The blend of technology and sustainability is becoming increasingly imperative. Today, companies must prioritize sustainability to attract top talent and win over clients. If you are looking to adopt a responsible accounting approach and outsource with confidence, we can help you. At Accrels, a pioneering accounting outsourcing company offers bespoke outsourced bookkeeping services for accountancy practices.
Our industry-leading talent, continuous professional support, swift turnaround times, and guaranteed cost savings will help your firm thrive. So, if you are ready to embrace sustainability, connect with our accounting teams at Accrels now!