Introduction
It’s 2024 and the accounting industry is transformed. Endless spreadsheets and manual bookkeeping are a thing of the past and digital transformation has revolutionised workflows, uncovered insights, and turned accountants into strategic partners. This blog covers the top five trends you can expect to shake up accounting in 2024:
1). Automation:
With technology leading the way, manual data entry and reconciliation are a thing of the past. Cloud accounting software such as Xero and QuickBooks automates repetitive tasks and performs basic bookkeeping while software like Papercare will automate the time consuming task of working papers. This saves time and allows accountants to focus on higher-value activities including:
• Strategic financial planning and analysis
• Business advisory
• Data analytics and interpretation
David Lee, a prominent FinTech consultant, says: ‘Automation isn’t a threat; it’s an opportunity. It allows accountants to shift their focus from number-crunching to strategic thinking, becoming true business advisors for their clients.”
2). Cloud computing:
Cloud computing helps true worldwide access to financial data. This gives accountants and their clients, real-time access to financial information from anywhere, at any time. Furthermore, it allows seamless collaboration between internal teams, external partners and clients. According to Wolters Kluwer’s Annual Accounting Survey Report held at the end of 2023 with around 1750 firms, it shows that firms which are cloud-based experience higher growth than traditional firms. This numbers will keep increasing year after year.
3). Artificial Intelligence:
Artificial intelligence (AI) is no more a sci-fi concept. It’s a reality that’s changing the accounting industry. AI algorithms are more than automation. They analyse vast sets of financial data to uncover patterns, outliers and even fraud with unprecedented accuracy. AI-driven predictive analytics also forecast future performance of a business, enabling better decision making with data. For example, an international financial services company adopted AI for expense analysis in 2024. Within a year, they reduced miscategorised expenses by 25 per cent.
Insights:
According to a latest Global trends survey made by ACCA Global, where they involved almost 10,000 accounting professionals from 157 countries to answer questions related to work in the future, where one of the question was asked about, “Do they believe AI will enable finance professionals to add more value in the future”, below is the answer to that:
Read full article here including different questions asked in the survey:
https://stories.accaglobal.com/GTT-2024-AI-Tech/index.html
4). Emerging technologies: Blockchain and beyond…
Technology like Bitcoin and crypto currencies are built on blockchain technology. Blockchain technology works on network of computer nodes that helps in recording and validating the transactions. This decentralised ledger technology allows true record impermeability to all parties, reducing the risk of error and fraud. A study by Accenture reported reduction of errors by 67% can be made by using Blockchain. And while blockchain-based accounting hasn’t gone mainstream yet (15 percent, according to a recent survey of its members by the AICPA), it promises to remake the profession. Meanwhile, robotic process automation (RPA) and big data analytics will streamline more routine accounting tasks and deliver deeper insights into corporate financials.
Quote: “The future belongs to those who can leverage technology to add strategic value. As technology continues to evolve, accountants with expertise in these emerging technologies will be highly sought-after” says Dr Maria Garcia, a professor specialising in accounting and innovation.
5). The changing role of the future accountant
The skill-set demanded by employers for the accounting profession has already changed dramatically. In addition to traditional accounting principles, the future accountant needs to be:
Tech-savvy: Cloud accounting software, automation tools for data entry and analysis, plus data-driven insights are crucial.
Data-Driven: a capacity to consume data, identify trends and translate them into actionable insights.
Good communicators: Accountants can utilize their communication abilities to portray technical and highly complex financial matters to technical and non-techie audiences as well.
Problem-solver and critical thinker: Solving real-life problems and thinking creatively and independently is rewarded.
Business sense: Understanding how business processes work and how accounting affects them is key
Conclusion:
The future of accounting in 2024 isn’t just about technology. It’s about possibility. Specialist accountants who harness technology to uncover insights, forge partnerships, and become trusted advisors will lead the way. Businesses will recognise accountants as a crucial source of growth and innovation. “The future of accounting is bright.”