5 Trends Causing Disruption in the Accounting Industry

accounting industry

Over the past few years, tools and technological advancements have radically changed the aspect of business and marketing management. There have been several disruptions in the accounting industry in recent years, as technology has changed the way that accounting tasks are performed and the way that businesses operate.

Some of the key disruptions include the increasing use of artificial intelligence, the shift to cloud-based accounting software, the rise of automation and the use of mobile devices for accounting tasks. These changes have made it easier for businesses to access financial information and manage their accounting processes, but they have also led to changes in the way that accountants work and the skills that they need to be successful.

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 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’s 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 in Etobicoke but it definitely points out the fact that these professionals now really need to find ways to cope with the technology to add value to their service.

Billah and Associates Inc. is a name you can trust for skilled, detail-oriented accountants in Mississauga and the surrounding Greater Toronto Area.