5 Trends Causing Disruption in the Accounting Industry

accounting industry

Over the past few years, tools and technological advancement have radically changed the aspect of business and marketing management. There has been a remarkable transformation in consumer behaviour and trends which have given birth to the need to have a new approach to create value for clients.

Businesses today prefer automated services and needless to say, the new concept of automation has highly disrupted the accounting industry in many ways. On one hand, automated services are capable of providing services in bulk with insights on the other hand accounting professionals usually put emphasis on offering expert advice and insights building strong customer relationships in the process.

Here are the five trends that are going to influence the future of the accounting industry

1. Automated data entry

As mentioned above, automation is the main driving factor of the disruption in the accounting and bookkeeping industry. It may even lead to the disappearance of the manual data entry. Things like electronic documents, automatic imports and software solutions have even made it possible for businesses to completely eliminate data entry. This provides businesses with a better opportunity to utilize human capital. Automation ensures on-time reporting and improved accuracy.

Also read: Difference Between Bookkeeping and Accounting Services

2. Clients demand better connectivity

Today, the growing usage of smartphones, easy and widespread availability of wifi, increasing broadband speed and an inclination towards cloud-based services are encouraging accountants to adapt. Millennials and other young business people who aim to save time and money are looking for technology-based solutions.

For instance, they would always choose video conferencing over a face-to-face meeting that will take up an entire evening. To keep pace with the current trend accountants are incorporating screen sharing, instant messaging and video conferencing tools in their process and have set up cloud accounting systems and apps for their clients that integrate with their accounting software.

3. Big Data

The developments in business intelligence, machine analytics, and #bigdata have greatly influenced every aspect of a business. Big data enables large companies, businesses and decision-makers to access a substantial amount of information and analytical tools to make future decisions.

These are popularly used by accounting professionals to keep records, enter data and analyze the future aspects of their business. Big data consists of a huge amount of consumer data and financial trends which help them predict the future of the client needs.

4. Specialization and customization

The concept of customization has touched almost every business now. This is due to the consumers’ growing reliance on products and services that perfectly suit their needs and preferences. They only want to see products that fit their needs. As the new concept has touched almost every industry, the accounting field is also not an exception. This particular industry has witnessed an increased demand for specialized products instead of bundled packages. Businesses now only want to spend on their specific needs and cut expenses on unnecessary services.

5. DIY approach

The growth of accounting software like QuickBooks, Clearbooks, workday, etc has encouraged small and medium-sized businesses to try out the DIY approach.

The DIY approach and the other disrupting trends do not indicate a complete end to the requirement of professional accountants Etobicoke but it definitely points out the fact that these professionals now really need to find ways to cope up with the technology to add value to their service.