Keeping up with the latest trends is essential to staying relevant in the industry that your business is in. Trends change a lot over the years so it is important to keep track of these changes annually so that your business may stay afloat, maybe even rise up to the competition. This article provides you with the 6 latest trends in bookkeeping and accounting that may benefit small business owners.
Back when the industry was hard-drive and paper-based, it was a big hassle for businesses to change their accountant. Now, with much less (if any) paper involved, businesses can switch with just a few click.
Find anything wrong with your current accountant? Just look up another cloud-based accounting firm and switch, it’s that easy. Look for proactive accountants who could provide you with up-to-date information in the least amount of time possible.
According to a recent report by IDC, there is a significant upward trend in the adoption of cloud technology by small and medium-sized enterprises (SMEs) is expected to witness significant growth, with the market size in the region projected to exceed $2.5 billion by 2024. This represents a substantial increase from the current estimated market size of $956 million. The driving factors behind this upward trend are readily apparent. Cloud technology offers convenience, cost-effectiveness, and major software providers have invested considerable resources in enhancing user-friendliness.
This emerging trend necessitates a heightened level of adaptability for accountants. In order to meet the evolving demands of their clients, accountants must either be capable of accommodating specific service requirements within their existing infrastructure or face the difficult decision of losing clients in order to streamline their services. It is evident that the changing landscape of technology in the accounting industry compels accountants to remain flexible in order to effectively serve their clientele.
It may seem obvious or overdone at this point, but many people still think of the cloud as online storage or just a backup plan of sorts. Not anymore. The power of the cloud has increased dramatically over the years, making work quicker and more efficient. It provides a way to allow access to more information for more people at any time of the day or night. Real-time insights into key performance indicators are at your fingertips – and at your client’s fingertips. This helps accountants move from the ancillary role of number-cruncher to a more active role of providing valuable insight that impacts daily operations.
A growing trend in the tech world is data analytics, with which you can crunch new and valuable insights from your existing data. The old standbys – income and statements of capital, balance sheets, and the like – will always be important, but with today’s dynamic business environment, more in-depth analysis can give your clients a better, more competitive advantage. Analytics can help identify underlying trends and risks, as well as bring anomalies to the surface faster than traditional inquiries. It provides a wealth of easily actionable information.
Accountants need to leverage customer data to create more marketing opportunities. With today’s tools, accountants can automatically send newsletters with marketing content – videos, articles, and case studies regarding new ways to grow the bottom line. Taking advantage of innovative ways to use existing client information is a cost-effective way to increase ROI for both accountants and their clients. Automating marketing increases business from existing clients, leads to more referrals, and frees up valuable time.
Most businesses use social media to create a presence for their business online, and reach a wider audience. Using social media strategy for accounting is also gaining popularity this year as business owners are becoming more active on social media. This trend in bookkeeping and accounting is not just beneficial for accounting firms but also for the clients who are able to gather information themselves, which provides clarity when it comes to choosing the services provided by an accounting firm.
