The accounting industry is an ever-changing landscape; always shifting to meet the possibilities afforded by new technology and client expectations. So far, 2023 has been no exception, and we’ve already seen a number of newly emerging trends across the sector as a whole.
Some of these accounting industry trends have been major talking points, others might not be so well known about. So, as we leave Q3 behind us and enter the last quarter of the fiscal year, let’s examine in greater detail some of the biggest accounting trends of the year so far.
Data Analytics
The role of data in accounting has become an issue of prime importance over the course of 2023. Rather than simply reporting and administering their incoming and outgoing finances, clients are now looking to accountants to provide them with a more detailed analysis. They want to close the gaps in the columns of numbers and find actionable insights and accurate predictions that can drive better business decision-making.
Because of this increased demand for, and awareness of, data analytics, more and more accountancy firms are now employing the help of third-party data analytics providers, or are creating their own bespoke tech themselves, to boost risk assessment, fraud detection, and financial forecasting.
Sustainability Accounting
Sustainability has become an absolute necessity for any contemporary business. Mounting pressure from internal lobbyists, external activists, and governments have made it imperative for enterprises of all shapes and sizes to ensure that their business model is sustainable and environmentally-friendly.
Because of this, an increasing number of clients are turning to accountants to conduct sustainability audits along with their financial audits. These businesses are looking to accountants to help them track their environmental impact and sustainability efforts, as well as provide appropriate metrics by which they can measure their success or failure in their ongoing ESG efforts.
Cloud-Based Accounting
In the aftermath of the COVID-19 pandemic, more and more businesses have sought to move away from a reliance on on-prem facilities and infrastructures and towards cloud-based working methods instead.
In this vein, we’ve seen more and more businesses who use accountants voice their demand for cloud-based accounting solutions over the course of 2023. The key advantage of such services, of course, is that they allow businesses to access their financial data at any time, from any location, with any device with an internet connection.
All this makes accessing relevant accounts easier and more efficient for these stakeholders. Furthermore, cloud-based accounting is scalable — so accounting firms and accounting departments can add or remove users and features. This makes it easier than ever for enterprises to pivot to account for changing accounting needs and budgets; something which has been extremely valuable to many businesses during the current period of global economic uncertainty.
AI-powered Accounting
Artificial intelligence has been a major talking point across all industries over the past year, and accountants have also been considering the potential benefits which machine learning and automation can bring. By automating more mundane tasks, accountancy firms can free up more resources and cut back on costs, allowing accountants themselves to focus on higher-level objectives.
Meanwhile, Generative AI models with chat-style interfaces have also proven useful for financial conundrums — allowing accountants to pose queries to the AI, which can then dutifully provide relevant information and answers.
Keep your accounting firm competitive with INAA
At INAA, we’re always striving to be awake to new possibilities in the world of accounting. We help identify new trends and technological possibilities for accounting firms in 2023 and beyond.
So, if you’d like to stay up-to-date with current trends within the accounting industry, then visit our official website and apply for your membership today.