Accounting Trends to Pay Attention to in 2022 |
Posted: November 8, 2022 |
To get an idea of the magnitude of the changes the accounting profession is going through, look no further than the recent changes to the CPA exam. Over 100 years ago, Licensing Gold Standard recently announced that its 2021 review would focus on understanding business processes, automating and analyzing data. At the same time, it phased out other topics, such as verifying the difference between IFRS and GAAP and expertise in the taxation of estates and trusts. What Are Accounting Trends? Accounting trends are developments and responses to changing landscapes, technology and other market forces which shape the accounting profession as we know it today. How is the accounting service business evolving? Change is rapid and is due in large part to rapid technological developments. There are many ways the pandemic has accelerated this adoption. For example, greater adoption of cloud accounting software, along with a shift towards automation and artificial intelligence.
Technology and Automation
What is new in the accounting world? The ever-changing technology and the tendency towards automation of repetitive accounting tasks are among the most exciting developments in the accounting industry. Processes that are automated include approval workflow, bank reconciliation, journal entries, business-to-business consolidation, income recognition, rental accounting and amortization. While many accounting features may be automated, there is a lack of understanding of the technologies and resources available for implementation. But the people who jump out reap the benefits. About 70 per cent of companies that have automated more than a quarter of their accounting functions report a moderate to substantial return on investment.
1. Role of Artificial Intelligence (AI) Across industries, there is agreement that AI can and will have an important impact on finance and accounting. Businesses use artificial intelligence and robotic process automation (RPA) to automate mundane, highly reproducible tasks, allowing accountants to focus their time on higher-impact, higher-value activities.
2. Accounting Software For RPA to be successful, transactional data must be normalized and fused from multiple sources into multiple formats, also known as harmonization. Harmonization can be about consolidating structured, semi-structured, and unstructured data into one system. AI is a data-intensive business. Most important, the results of all enabling technologies must be trusted by accountants. This is where the billing software enters in. Around 36 per cent of companies plan to implement cloud bookkeeping solutions soon. Enterprise resource planning systems can integrate your bookkeeping software and financial information into other important areas of your company, such as supply chain, order management and production. An integrated ERP platform brings together data from these different areas to give you a more tangible view of your business.
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