Accountants have gone through a massive wave of change throughout many years. As the accounting industry evolved due to the introduction of new technologies, the accountants also adjusted their key skills because with the evolution of the accounting industry and changes in the accounting solution, the demands of the clients also changed.
There is a majority of IT experts who believe that the tech ecosystem will go through a vast phase of change over the coming two years where emerging tech and clients demand will top the list of priorities. This evolution of the tech ecosystem will have an impact on all the industries including the accounting industry.
In this blog post, we have compiled three important changes or what we can say waves in accounting which people will notice in 2019 or in upcoming years.
Tax season will no more be a barrier
Nowadays, most of the firms are focusing less on the traditional busy season of tax because of new U.S tax legislation, easy to use accounting and tax software, and new client demands. Due to the simplification of the tax laws in the U.S, now accountants will spend less time in filing consumer tax returns and that will allow them to not only act as financial resources for the clients but also as a strategic advisor.
Along with that, with the introduction of the new AI technologies and enhancement of automation in the accounting process, the accountant will be able to move to a much faster way of getting done with many manual accounting processes which consumed both effort and time of accountants. For example, bookkeeping, which was done manually and required a lot of time because of its repetitive and lengthy nature has not become a part of various automation processes due to the availability of the new technologies. All these automation will free the accountant’s time during the busy season and they will be able to focus more on the client’s relation.
Specialized services will become prominent
According to the current reports, it has been found that the accounting profession has now become more competitive in comparison to the past. Now, the approach of ‘one size fits for all’ doesn’t works in the accounting services as with the evolution of the accounting solution, accountants, and accounting technologies, the demands and need of clients have also evolved.
Nowadays, in order to thrive in the market, accounting firms need to provide specialized services. For example, soon accounting firms will be highlighting those particular industries in which they will have expertise as clients will be looking for those firms that have specialization in their particular industry rather than looking for generic firms.
If you are running an accounting firm then you will need to take advantage of the technology and identify the industries you can best serve. Adopting this strategy in the early phase will give you several advantages over your competitors as other players will have generic services which might not work in future while you will be attracting all the clients of a particular industry.
Capitalizing on technology before being left alone
There is no doubt in the fact that the competition in the accounting industry has become quite tough and therefore the way the accounting firms will respond to these new challenges will decide their future in the next 5 to 10 years. But the one way through which the accounting firms can smoothen their tough path of competition in the future is by embracing the technology before it’s too late.
Most of the accountants adopting the latest technologies in the accounting have admitted that they did so in order to enhance their efficiency while the number of accountants adopting the technology for providing better service was less in comparison the first reason mentioned above. Digital transformation has become very crucial in the accounting industry and if an accounting firm will become rigid in such a phase of change then there survival in the long run will become questionable.
In the upcoming years, more and more firms will adopt the cloud technology, embrace the artificial intelligence and take advantage of the machine learning while at the same time, accountants will also have to go through the changes in financial policies and vast legislative reforms. Adopting these changes will become the new normal for firms and that will be the only way they will able to survive and thrive in the market.
So the new wave of accounting in 2019 and the upcoming years will focus on no more busy hours during the busy tax season because of multiple technologies and legislative changes, specialized service offering by accounting firms for enhancing efficiency and targeting the clients in a new way and last but not least adopting new technologies like cloud technologies, Artificial intelligence, and machine learning.