6 Emerging Trends in Accounting and Finance You Might See in 2020-converted

6 Emerging Trends in Accounting and Finance
You Might See in 2020

Businesses are now moving beyond the best practices in accounting and starting to see that
digital innovations are improving financial processes. These address pain points in product
output, operational costs, and return on investment, among many other areas of business.
Finance leaders are now creating a balance of maintaining their traditional responsibilities
whilst developing a corporate strategy with automation and digitization in mind.
As we close 2019 and look forward to the beginning of a new decade, take a look at 6 big
trends in finance and accounting that you can add to your strategy.

1. Automated Accounting Processes

Automation of more accounting processes is one of the key accounting trends that are
likely to be in the industry in 2020. Automation helps eliminate confusion and
minimizes errors, that is why organizations are more inclined to invest in automated
solutions. Since the process relies heavily on computers, businesses face the risk of
falling victims to fraud and breach of security. These led to an increase in demand for
internal auditors in order to check for any data discrepancies and inaccuracies. Thus,
there is no need for in-house accounting services to worry about losing their jobs to
bots.

2. Rise of Accounting Software Solutions

The adoption of tech-driven solutions in the accounting and finance industry will
intensify in the upcoming years. As the demand for computerized accounting grows
exponentially, accounting software firms will address this need by providing robust
solutions. These software platforms possess a range of highly functional software that

accountants value the most. The accounting and finance software market will
experience a higher level of growth in the years ahead, according to research and
studies all over the world.

3. Cloud-Based Accounting

The cloud is becoming a popular place for accounting and finance services. With
cloud-based accounting systems, most firms are able to have access to their system
anytime. Data access also includes tracking sales, expenses, and inventory. Moreover,
cloud-based solutions allow for a smooth workflow, saving businesses valuable time.
Having such benefits are driving accounting firms to make the shift to cloud-based
accounting systems.

4. Focus on Data Analytics

As technology allows specific accounting and finance tasks to become easier, the
accounting industry is likely to see a significant shift to data analytics. Accountants are
taking on new roles such as advisors and consultants, with unique skill sets that
revolve around data analysis. Analysing numbers helps businesses come up with
valuable insights that enable them to identify areas of improvement as well as an
increase in efficiency and better risk management.

5. Increased Role of AI

Artificial intelligence is another one of the major emerging trends in accounting that
produce positive results in the accounting industry. It allows analysing large volumes
of data at high speed, as well as increasing productivity and generating more accurate
data at a reduced cost. The importance of AI in accounting and finance is growing
more rapidly as it optimizes administrative tasks and accounting processes that result
in various structural and operational changes. AI provides vast opportunities for
accounting firms to a new level of efficiency and accuracy for workflows.

6. Big Data in Accounting

Just as big data plays a crucial role in many sectors, it fills the same significant role in
the accounting and finance industry. Big data supports companies and firms through
expanded assessment methods, with accounts and finance experts working behind
the curtain. Professionals identify which of the collected data is most valuable and
then turn that data into actionable insights. This makes it crucial to understand what
big data has in store for the upcoming years.

With the use of big data, accountants and experts can transfer key internal data sets
into secure and more imperative data analyses. A growing number of firms are now
prioritizing accountants who have extensive knowledge and experience in analytics
and data science. This showcases that the accounting and finance industry is shifting
from its reactive nature to become more proactive.

Monitoring Emerging Trends in Accounting

Current accounting trends show that digitalization is as ubiquitous in the accounting sector as
it is anywhere else, but human roles remain just as relevant. Another development that can
define the accounting and finance practices in the future is the growing acceptance of remote
work in the field. It is already big in other industries and accounting will see more of it in the
future. To be successful and top of the line, every business needs to keep monitoring these
trends as they emerge and embrace the latest technologies to optimize processes.