If you were to have read an article on accounting and finance trends for 2020 at the beginning of last year, none would have included ‘global pandemic’ in their projections.
As we distance ourselves from a year of record disruption, our ability to forecast trends and speak to their impact on the accounting and finance industry becomes far more manageable.
Below, our team at JFSPartners shares their insights on a few of the most prevalent trends facing our industry in 2021.
Automated Accounting Processes
Like in just about every other industry across the globe, common, repetitive tasks are on their way to automation in accounting and finance. Constantly improving automation software can expedite and improve a constantly expanding range of lower-level decisions and tasks like invoice processing.
There can be an initial impulse to resist automation for fears it will minimize the need for carbon-based help—but that’s not the case. Automation reduces the amount of redundant, time-consuming work that needs to be done, thus enabling staff to be even more efficient and productive.
With each passing year, a growing portion of how we work and how we do business seems to be facilitated more in the cloud and less “on the ground.” Accounting is no exception.
The reason for this massive shift is the sheer number of benefits afforded to companies who are early or aggressive adopters of cloud-based services. Instead of being constrained to internal and on-site networks and data centers, companies and their employees can access their systems anywhere and at any time. Additionally, IT budgets can reduce as cloud service providers handle all system upgrades/deployments/troubleshooting.
Data Analytics and Integration
We live in the age of data—massive amounts of data. As technology continually evolves and refines to take advantage of all this data, accounting and finance companies stand to reap the benefits.
Sound data analytics practices can empower companies by revealing operational efficiencies, enhancing risk management, and better inform decision-making. Already, more and more accounting professionals are taking on new roles that revolve around analyzing data and turning into actionable insights. As data analytics continues to discover new ways to improve efficiency and processes, expect for its focus to only increase within accounting and finance throughout 2021.
Blockchain has already impacted the accounting sector in myriad ways, including lowering the costs of reconciling and maintaining ledgers. But, as the technology and its implications continue to evolve, look for this trend to experience an uptick in momentum. By the end of 2022, for example, US firms alone are estimated to spend $1.1 billion on blockchain. With its ability to grant a clearer view of an organization’s obligations and available resources, it’s easy to see why that figure is projected to increase in 2023.
SANFORD ROSE ASSOCIATES—JFS PARTNERS
As we emerge from a challenging year, the necessity of top talent becomes all the more visible.
JFS Partners can help. We help our clients navigate their hiring demands and empower them to hire the best accounting and finance talent with confidence. Call us today to learn how we can do it for you.