“…It’s in society’s best interests to have the most output produced with the least inputs.” Warren Buffet – Investor and world’s wealthiest man
Introduction
“May you live in interesting times,” was a curse. Now, times have never been more interesting – and exciting. Industries, including finance, are evolving at a rate of knots. AI is driving innovation while cloud-based accounting software embraces the benefits of automation.
We’re going to look at some upcoming trends that will reshape accounting services in 2024.
Accounting Trends for 2024
Increased Demand For Outsourcing Accounting Services
In 2023, a cycle of overhiring and firing kept businesses and employees on their toes. Greater adoption of outsourcing will help break the cycle as it stabilizes costs and minimizes risks for companies on the ground.
The trend will be to use full-service outsourcing, as opposed to limited or selected services.
Growth In International Partnerships
Not only will companies turn to full-service outsourcing; but they’re also expected to choose international partnerships. This is partly to take advantage of a more varied choice of service providers and to capitalize on opportunities to develop global business skills.
In the current market, international vendors provide the reassurance of consistency, which is missing from domestic vendors.
Evolution Of Accounting Software Solutions and Cloud Computing
Expect a greater uptake of cloud-based accounting solutions as AI becomes more prevalent – and more sophisticated.
The cloud has many other benefits; scalability being one of the most compelling. Your outsourcing package ebbs and flows in line with your business’s circumstances.
Multi-user access is also an attractive feature, especially when combined with remote access and real-time collaboration from anywhere with an internet connection.
Many businesses have been quick on the uptake and are already reaping the benefits. For example, a report by Sage determined that:
- 67% of accountants agreed that cloud-based solutions have made their work easier and better.
- 58% of organizations have noticed and accepted the benefits of moving to the cloud and are now using cloud-based accounting systems.
Given all of the advantages available, small businesses are expected to continue their migration to cloud-based services.
The trend is less clear among larger organizations with the capacity and capability to create mini-cloud platforms.
Accounting Software And The Power Of Automated Accounting Processes
It’s been on the cards for several years, but 2024 could be the year of automation.
Automation tremendously impacts accountants’ lives because it manages simpler, more time-consuming processes, like accounts payable and tax preparation.
Human error is virtually eliminated and the software guarantees compliance with federal and industry regulations.
Consider:
- An ACCA study found that over 50% of C-level executives in accounting expect automated accounting systems across several industries.
- Netsuite found that 70% of companies that incorporated automation in over 25% of their accounting functions reported moderate or substantial ROI.
Click here to read the ACCA study.
Machine Learning And Artificial Intelligence In Accounting Software
Generative Artificial Intelligence (GAI), like ChatGPT, has been quite controversial in several industries and 2024 looks like the year it will start impacting accounting and finance.
Meanwhile, Artificial Intelligence (AI) and Machine Learning (ML) are avidly anticipated. It’s expected they will be integrated into existing software, including Excel.
AI and ML continue to manage data entry, reconciliation, risk assessment, and customer service, but, with GAI, they also “teach” accounting systems to learn and ultimately carry on with tasks that were never thought possible.
Accountants and other financial professionals should take every opportunity to familiarize themselves with AI technology because, according to PwC, AI is set to be an economic powerhouse, contributing approximately $15.7 million to the global economy by 2030.
Accounting is one of the industries set to benefit the most from rapidly evolving AI tech.
You can read PwC’s report here.
Accounting Software’s Power Of Data Analytics and Visualisation
So, AI and ML are going to reshape the industry, but let’s not overlook the impact of data analytics and visualization.
Analytics and visualization can take complex data sets and turn them into comprehensible and engaging data that provides insight into cash flow, scenario management, forecasting, tax consulting, and informed decision-making.
Read an article from Lescault and Walderman’s CEO on The Power Of Predictive Analytics.
Data-Driven Decision Making
2024 is the year of informed decision-making. Accounting professionals will use data analytics and in-depth reporting to make insightful and strategic decisions that benefit their business and their clients.
Data is collected from cloud-based accounting software and is easy to access for all parties in the business. Accountants’ role has changed from number crunchers to data storytellers. This helps them communicate the numbers to key stakeholders in relatable terms.
Read an article from Lescault and Walderman’s CEO on Building A Data-Driven Decision-Making Culture In Your Organization.
Blockchain and Cryptocurrency Implementation In Company Accounting
The last two big trends for 2024 are blockchain and cryptocurrency. They’re revolutionizing systems that record and verify financial transactions. So much so that a survey by Robert Half revealed that 89% of CFOs are implementing or planning to implement blockchain and cryptocurrency initiatives in their organizations.
Blockchain, distributed ledger technology, enables direct transactions that are secure and transparent. Cryptocurrency is an intangible asset that uses cryptography to validate and exchange value.
They’re expected to have the most impact on auditing, taxation, reporting, compliance, and fraud prevention.
Read an in-depth article from our business partners at Sage on How CFOs can embrace cryptocurrencies for their businesses.
Changes In The Accounting Leadership Space
The accounting landscape is set to change in 2024 as more C-level professionals are set to retire than ever before. Combine this with low numbers of new accountants entering the profession and you have a recipe for major change that could introduce a variety of interesting, non-traditional career paths.
Conclusion
Interesting times are here to stay – thank goodness. Now the accounting industry can continue evolving as GAI, AI, and ML transform accounting software, and the way we use it.
Thanks to cloud-based software, accounting professionals are forging international partnerships that bring about new ways of conducting business that are innovative and efficient.
Keep an eye on analytics, blockchain, and cryptocurrency as they drive the industry forward into a multimillion-dollar boost for the global economy.
2024 is shaping up to be interesting, indeed.
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