10 Accounting Trends to Look Out for in 2024

The accounting industry constantly evolves and grows. The accounting industry faces changes over time as new technologies are introduced and the old methods then become outworn. Tax professionals are turning to cutting-edge technology to streamline processes and boost efficiency.

The future of accounting and finance technology is one of the continuous innovation and transformation. Technological advancements like cloud computing, automation, and data analytics, AI are transforming the accounting profession. By embracing these advancements, accountants can enhance their skillsets, unlock new opportunities, and add even greater value to their clients and organizations.

Let’s see the ten trends that will shape the future of the accounting industry:

Top Finance and Accounting Trends You Can’t Ignore in 2024

Cloud-Based Accounting

Cloud technology has become a cornerstone of modern accounting practices. Secure and accessible from anywhere, cloud-based accounting software streamlines data storage, collaboration, and real-time financial insights.

It eliminates the need for expensive on-premises servers and IT staff, making it suitable for firms of all sizes. Streamlining workflows and empowering collaboration allow accountants to provide excellent value and strategic insights.

According to a research by Statzon, about 44% of traditional small businesses use cloud infrastructure or hosting services. That’s compared to 66% of small tech companies and 74% of enterprises.

Continued Rise of AI and Automation

Repetitive tasks like data entry, bookkeeping, and reconciliation are increasingly being automated by AI-powered tools. This frees up accountants to focus on higher-level analysis, strategic planning, and providing valuable guidance to clients. AI can also identify irregularity, improve accuracy, and automate complex calculations.

Through AI and Automation

• Handle repetitive tasks like data entry, bookkeeping, and reconciliations much faster, freeing accountants for strategic work
• Analyze vast datasets, catching errors humans might miss, improving data integrity
• Automate workflows by streamlining processes and potentially reduce personnel costs

As per Journal of Accountancy, a study by the University of Pennsylvania researchers and OpenAI, the company that developed ChatGPT, says that many accounting firms are open to more automation.

Also Read: The Role of AI in Accounting

Enhanced Focus on Data Analytics

The ability to collect, analyze, and interpret vast amounts of data is revolutionizing accounting. Data analytics empowers accountants to uncover hidden patterns, identify trends, and generate data-driven insights. It allows for proactive tax planning, risk management, and improved decision-making.

According to Statista, the global big data analytics market was valued at over 240 billion U.S. dollars in 2021. The market is expected to see significant growth over the coming years, with a forecasted market value of over 650 billion dollars by 2029.

Data visualization and real-time insights empower accountants to move beyond number-crunching and become strategic financial partners, providing valuable guidance for business growth and success.

Robotic Process Automation (RPA)

RPA automates routine accounting tasks using software robots or “bots.” These bots can categorize data from invoices and receipts, generate reports, and ensure compliance with tax regulations. RPA streamlines workflows, minimizes errors, and allows accountants to focus on more strategic work.

Here are some examples of how RPA is used in accounting:

• Extracting data from invoices and receipts
• Matching invoices to purchase orders
• Reconciling bank statements
• Generating financial reports
• Posting transactions to the general ledger

Source: Flobotics

Increased Adoption of Blockchain Technology

Blockchain is a technology that keeps a record of your transactions secure. The transactions are organized in blocks, which are then linked with a cryptographic hash. Every block contains both old transactions and new transaction data. Also, once data is in the block, it is difficult to change or delete it.

This technology offers a fixed record of financial transactions, enhancing transparency and auditability. Blockchain can also automate tax calculations and payments through smart contracts, furthering efficiency and reducing errors.

Blockchain technology cloud market size worldwide from 2021, with a forecast for 2030.

Cybersecurity and Data Protection

As accounting firms handle sensitive client data, robust cybersecurity measures are very important. Managed security solutions offer real-time monitoring, threat detection, and data encryption to safeguard against cyberattacks and protect confidential information.

Here is why implementing strong security measures in the accounting industry is important:

• Safeguard sensitive data
• Mitigate cyber threats
• Maintain compliance
• Minimize financial losses

Source: Statista Market Insight

E-filing and Digital Signatures

E-filing eliminates paper-based processes and expedites tax and financial reporting. Digital signatures add a layer of security and ensure document authenticity during electronic transmission. With this eco-friendly approach reduce errors and streamline workflows.

Source: FinancesOnline

Growing Demand for Remote Work

Cloud-based accounting software and video conferencing platforms facilitate remote work and collaboration for accounting teams. It allows for geographically dispersed teams to work seamlessly together, enhancing flexibility and scalability for accounting firms.

Benefits of Remote Work in Accounting Industry

• For Firms: Access a wider talent pool of skilled accountants, potentially reducing recruitment costs.
• For Employees: Improved work-life balance with flexible schedules and reduced commuting stress.
• For Both: Increased productivity due to fewer distractions and the potential for longer work hours across time zones (if relevant).

Currently, 12.7% of full-time employees work from home, illustrating the rapid normalization of remote work environments. Simultaneously, a significant 28.2% of employees have adapted to a hybrid work model.

Emphasis on Sustainability and ESG Reporting

ESG reporting is becoming increasingly important because investors, regulators, and even customers are demanding more transparency from companies. It goes beyond just financial performance, considering a company’s environmental impact, social responsibility, and governance practices.

Accountants increasingly need to understand and implement ESG because it’s becoming vital for businesses. ESG strategies, measure progress, and ensure accurate reporting.

Global sustainability reporting rates (1993–2022)

Source: KPMG

Upskilling and Continuous Learning

The changing landscape demands a new skillset for accountants. Data analysis, critical thinking, problem-solving, and strong communication skills are becoming increasingly important. Accountants who can effectively interpret data and translate it into actionable insights will be highly sought-after in the future.

How can you embrace continuous learning and Upskilling:

• Develop a Growth Mindset
• Identify Your Goals
• Explore Learning Resources
• Set Realistic Goals
• Seek Mentorship

By continuously learning and upskilling, you can stay ahead of the curve and thrive in today’s ever-changing world.

Conclusion

With technology automating routine tasks, the focus of accounting professionals is shifting towards providing strategic advisory services. Accountants are leveraging data analytics to generate financial insights, offer business consulting, and assist clients with financial planning and decision-making.

The accounting profession is rapidly evolving alongside technological advancements. By embracing these trends and upskilling their workforce, accounting firms can enhance efficiency, provide greater value to clients, and thrive in a data-driven future.