7 Things to Look Out for in Accounting in 2017
Accounting plays a pivotal part in the operation of any business. If an accounting system is not up to the standard, you may start facing money crunch. For an organization to work smoothly, you must understand the essentials like the required costs, how much time is put in for making a product and what more should be invested in the business. If you fail to plan meticulously on these points, it is very unlikely that your business will expand. Conversely, if you have kept a track of the way, things are carried out and have a fair idea about its financial scenario, you will be able to stay ahead in the competition. There have been multiple changes over the years in accounting. Accountants have started adopting new trends that have given a boost to their income and also made their work easy to a great extent. Following list demonstrates the most-recent trends that have taken accounting industry by storm.
Shift to cloud accounting will increase
As more businesses are shifting to clouding technology to store data and cut down costs, cloud accounting is gaining importance. An emerging shift, this has set the path for enhanced cooperation among team members and given a better understanding of financial condition. This involves the use of software, which operates on server and can be accessed from anywhere through the Internet. This way, the data is available to employees and the accountant for use whenever required. It gives the accountant more transparency in work and also lets him/her keep checking on possible discrepancies.
Decentralization of accounting software
Earlier tasks such as generation of bills, reports, management of inventory and setting up a payroll system were all carried out at one place. However, more businesses are now opting for distribution of these tasks. The accounting field is making use of various applications for solving business issues with ease. These applications facilitate easy sharing of information. Decentralization has doubled the revenue for accountants as they integrate into multiple partnerships.
Automation will be an integral part of work
It eliminates manual data entry and thus reduces the burden of maintaining huge book records of years. It also reduces the chances of records being misplaced or tampered due to human negligence. This can be beneficial for small-business owners and entrepreneurs to a large extent. These tools promote effective communication between accountants and their clients and also help them deal with real time accounting problems.
Rise in social media strategy
Many businesses today prefer social media marketing of their products to increase their target audience. In the same way, use of social media strategy for accounting is also rapidly gaining attention as business owners are found more active on this platform. This trend has not only been picked up by major accounting firms but also has given entrepreneurs a better clarity to choose their accounting firm by getting an insight into the services offered. The accountants can market themselves by communicating to various people. It also enhances their exposure to new things and increases their visibility in the industry.
Increase in collaborative accounting
Although this is not which has been introduced recently, it is certainly giving new direction to business and opening up new vistas for sale. Collaborative accounting makes use of the Internet and latest technology to function irrespective of the location. For instance, the accountants can access client transactions and modify them if necessary by making use of cloud software. They can then inform about it to their clients by using different available chat platforms. This is being termed as the future of this field.
Accountants will turn into consultants
The working module is going to witness a huge change. Instead of paying your accountant on an hourly basis, flexible options will come into the picture. Apart from advice on tax deduction, accountants will be able to give you an outlook and suggestions on how to cut down your tax bill for the next financial year. They will become your trusted consultants who help you make your business grow exponentially.
Firms outsourcing their accounts
Many organizations are catching up with the latest trend of outsourcing their accounts department. This helps the owners to focus on their business and think of ways to boost it. It also helps in cutting expenses and guarantees that the accountant will scrutinize the reports for frauds.
Managing accounts form an important part of an organization. It keeps a check on the inflow of cash and enhances scalability of business. With new ways available to manage accounting of your firm, it has greatly reduced monotonous methods of handling records and increased lucidity in the working of an organization.