With the arrival of innovations and new technologies because of pandemic across the globe, the economic environment continues to evolve. Therefore, the change becomes a new constant for organizations to reshape their business model and business processes to remember of recent trends. Accounting is an important element of the business process. A well-run function of accounting provides accurate, timely, and relevant information in making decisions. Given below are the most recent accounting trends in 2020:
· Automation of the Accounting Function: In accounting, automation is fuelled by the advancement of software. During this globalized era, accounting is very automated without the need for physical intervention. The newest accounting software-enabled many firms to reduce data entry. It also ends up in the effective usage of higher management and resources.
· Cloud-based Accounting Solutions: The concept behind using cloud-based accounting solutions is to incorporate software which runs on the server providers and may access all the financial information within the cloud.
· Integration of Accounting with Operations: By using accounting software assistance, it’s easy to integrate accounting functions with all the business resources. These operations give better management of timely entry recordings and financial transactions. The combination of accounting with operations saves time by automating all the routine functions.
· Outsourcing: For any business, outsourcing accounting allows them to specialize in better utilization of resources. This trend isn't limited to medium and small-sized organizations. Even big entities are outsourcing their processing functions to the outsourcing vendors, usually in BPOs.
· Transparency and Objectivity: Accounting governing bodies like Certified Public Accountant boards have implemented significant emphasis on transparency and objectivity. Within the wake of the recent accounting scandals and irregularities, the credibility of the accounting profession and restoring trust are a requirement.
· Data Analysis: Information plays a significant role in making financial decisions. Database techniques, data centers, and software have started within the age of mining data and large data to assist decisions within the management. The info generated by accounting has often been an important component in the higher cognitive process. Specializing in the info analysis of economic information which is one of the key trends in accounting in 2020.
· Changes in Accounting Standards: Accounting standards are continually being updated and revised to stay up with times. Most of the standards were developed before the beginning of ad-tech, social media, and then on. These business models have a large impact on accounting. In this competitive world, most accounting professionals are required to stay up with all the changes happening.
· Social Media Integration: Social media has become very fashionable nowadays, and by using social media platform, accounting professionals communicate with colleagues and peers to update each other on politics, the latest business, and accounting developments.
· "Mobile" Accountants: With cloud computing and the acceptability of electronic documentation in place of invoices, traditional paper-based vouchers, and receipts, the accountants are increasing mobile usage. Accountants are currently sharing tools to boost remote collaboration.
Proactive Accounting: Generally, the accounting function won’t be naturally reactive, i.e. it records the transactions that are to be posted. But now it's changing because of many factors like evolving business regulations, models, and increasing accounting roles in the higher cognitive processes. Besides, this trend has been proactive in 2020. It allows the business to run efficiently.