Over the past couple of years, accounting firms around the world have had to adapt to a disruptive, uncertain landscape. They have been forced to transform their processes, reexamine their working environments and contribute to business’s economic recovery.
The novel accounting trends that have come out of the last couple of years will continue into 2022. Firms’ success will, therefore, rely on their ability to react nimbly to these trends and stay one step ahead of any others that may be on the horizon.
We’ve put together this article to take some uncertainty out of the equation and help you prepare for the future of accounting. Continue reading to discover five key accounting industry trends expected to shape 2022.
In 2021, cryptocurrency consolidated its position as a real alternative to fiat money. Perhaps the most instrumental event was the fact that, in September, El Salvador became the first country to make Bitcoin a legal tender. According to PWC, this is just the first domino to fall in global adoption.
Bitcoin becoming a legal tender brings new opportunities, not only in El Salvador but globally. As the digital currency becomes more widely accepted, more people will be in need of crypto service providers to help guide them through the many peaks and troughs of the market.
Expertise in cryptocurrency is niche, so there’s a market gap to be taken advantage of.
Accountants must move now to support any new or existing clients who intend to participate in the crypto phenomenon or who strive to understand the future implications of the trend.
Blockchain — started as a daring experiment — is an accounting technology at its core. It’s related to the transfer of assets and maintaining a ledger of accurate financial information.
Deloitte has even predicted blockchain technology as the future of accounting. In a recent article, the major auditing firm highlighted that: “Blockchain and DLT platforms have crossed the disillusionment trough of the hype cycle and are well on their way to driving real productivity.”
The technology is already making significant impacts on the finance sector by reducing the cost of maintaining and reconciling ledgers and making it easier to track digital assets, driving efficiencies.
Although it’s still in its infancy, the blockchain revolution is here. Future-thinking firm leaders may want to begin broadening their spectrum of skills to stay up to date with the latest advancements in this area.
The latter half of 2021 brought with it a surge in worker dissatisfaction and resignations from organisations, with almost one in four workers actively planning to change employers within the next six months.
During the pandemic, employees were placed under enormous pressure to continue working and adapting with little time for a breather. The resulting burnout is changing the way workers feel about their jobs. In times of crisis, it’s only natural that people reconsider their priorities and get a reality check on what really matters to them.
Nicknamed ‘The Great Resignation’, this movement has forced businesses of all kinds to reexamine their own pay, satisfaction levels and benefits packages, and this trend will likely continue into 2022.
Retaining staff has never been so critical. Now’s the time to check in on employees and ask them how they feel and what can be done to support them. For example, implementing flexible working schemes could help employees achieve a better work/life balance in the post-pandemic era.
The past couple of years has thrown curveball after curveball, threatening the survival of many firms who refused to evolve with the shifting demands of the market. It’s, therefore, never been so apparent that adaptability is key to long-term business growth and success.
Reacting nimbly to sudden market trends gives you an instant edge over competitors, and agile is the best way to achieve this edge. Applying the agile methodology in business empowers leaders to continuously adapt and respond to changes as they happen. Agile involves:
- Careful time management and goal-setting
- Planning sprints lasting between one and three weeks
- Reflecting on the success of each sprint to encourage continuous improvement
- Leveraging next-gen technologies to stay at the forefront of any developments in the sector and drive efficiencies
The future is filled with uncertainty, and the best (or only) way to tackle it is by being ready for anything. The agile methodology helps you do just that.
The worldwide health crisis has led to intense scrutiny into how every company handles sustainability — and 2022 will see more of the same. But, sustainability isn’t just a trend. Instead, it’s a principle that companies will be expected to honour from now on.
Not only are clients becoming more environmentally conscious, so too are investors because it’s widely accepted that sustainability will contribute to long-term stability and growth. Businesses of all sizes need to embrace a climate-conscious mode of operating to keep up with this mounting pressure.
It’s understandable if business leaders feel overwhelmed with the enormity of the task at hand. However, there are simple steps you can take in 2022 to incorporate eco-friendly practices into your work, such as minimising paper waste and prioritising energy efficiency.
To find out more, we’ve written a guide on how you can combat climate change in your firm, which you can read here.
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