Accounting Trends in 2020 that You Should Have Knowledge About
Businesses have been striving to improve their financial management by improving their accounting processes. Financial departments of companies have been looking for a balance of maintaining traditional responsibilities and developing a corporate strategy that includes automation and digitization. The accounting trends in 2020 reflect that.
If you are a business owner, you will surely benefit from having knowledge about them.
During the digital age, technology has naturally become a part of everyday life, and this is especially true for accountants. Actually, it is not surprising for an accounting firm to use 10 or more varying technological systems. That can still change because firms are reducing how many systems they interface with. The goal is to have quality over quantity, and using fewer tools so a business becomes more efficient, and to give better service and support to clients.
Automation that is Highly Sophisticated
Does your country need to be more advanced with automation? Companies that do not adopt automation could encounter disorganization, slow processes, miscommunication due to increased staff involvement. This can increase operational costs and make the firm move away from the main functions.
Artificial intelligence and machine learning are very important accounting trends. They are very helpful in 2020 when it comes to reducing tasks that are labour-intensive like tax preparation and payroll. For instance, AI is helpful to companies in identifying possible threats in the market, efficiently compiling big data, and giving insights on the improvement of business performance.
Diversifying Talent Growth and Evolution
Finding an accounting firm talent is not as easy as it used to be. It is not only about recruiting those who come from top accounting schools anymore, and the population of accounting graduates is decreasing. Based on this, firms future-proof their businesses as they move away from audit and tax candidates. Increasingly, they add the best security specialists, HR professionals, COD, and web designers. This leads to diversity in the workplace, and it opens doors for better organizational mobility, which plays an important role in managing employee retention.
A More Secure Audit Preparation
Monitoring audit is still important. However, if you are still using paper-based information for your accounting, that is too inconvenient. You should switch to accounting software or document management programs that can put everything under the same categories. That makes it simpler for people in your company to do preparations for audits instantly.
Outsourced Accounts Growth
Firms have the desire to have more involvement in the business of their clients, not only for audit and tax, but general ledger, payroll, and HR even if it is about tapping reinforcements outside, such as a PEO. In line with this, accounting firms still choose a monthly retainer structure compared to hourly billings. In concert, changes like these permit accountants to polish their business – making their clients save time and cost.
The above were the accounting trends in 2020 for Indonesia. You should keep up with the times so that your business processes will not get outdated. You can contact us at 3E Accounting if you need assistance with the accounting in your company.