10 Accounting Trends to Pay Attention to in 2023

There is no business or organization that can run without an accounting team or an accountant. It is an essential aspect of running a business. The accounting process involves tracking, organizing, and analyzing financial transactions. Businesses can make  informed decisions based on accounting reports.

The accounting industry has also been evolving like most other fields due to technological advancements and the introduction of new softwares. Hence, many new trends also stem from the technological evolution witnessed in the accounting industry.

Before we lay out some key trends that are widely adapted and practiced by accountants, it must be acknowledged that the most notable change that has taken place in the last couple of years is outsourcing accounting services to an offshore team. Indian accountants have made a positive name for themselves in the domestic as well as international markets.

There are multiple reasons behind companies choosing to outsource, such as the efficient services offered by offshore accountants, time savings, and accuracy of the work, among others. Businesses outsource their accounting services to India during peak tax filing season to ensure timely submission and filing of taxes. The following points will highlight how accountants have become more efficient with the help of some of the ongoing trends in the industry.

 Here are the top 10 accounting trends:

1. Automation: Accounting involves crucial repetitive steps that can be done easily with the help of automation. These tasks include workflow approvals, bank reconciliation, journal entries, revenue recognition, leasing accounting, and others. Companies often hire a virtual accountant who uses automation to accomplish these tasks and saves time without compromising on accuracy and quality.

2. Cloud-based accounting: Use of cloud-sharing software allows accounting professionals to access, share, and work on documents from anywhere. This has been an ongoing trend and is here to stay. Cloud sharing opens up the possibility of outsourcing accounting work to people based overseas. It allows safe exchange of data and information which is required by accountants to fulfill accounting tasks for businesses. Businesses choose to outsource accounting to India because of the surety and assurance of cloud-sharing platforms. It also helps accountants work remotely, finish work within given deadlines, and share it without any delay.

3. Sustainability: Business operations have an environmental and social impact,which is now being recognized at a larger level by organizations. Accounting is relied upon to provide reports and measurements of sustainable practices adopted by businesses. In sustainability accounting,there is tracking and reporting of environmental, social, and governance (ESG) performance.

4. Big data analytics: Data analytics and forecasting software are increasingly being used by small      and large companies. Finance departments are becoming more analytical, and technology will play a key role in shifting them from reactive and transactional to proactive and analytical.

5. Technological advancements: Automation of repetitive accounting tasks such as workflow approval,journal entries, bank reconciliation, inter-company consolidation, revenue recognition,and a few other tasks has been made possible due to technological advancements and innovations in accounting..

6. Role of AI: The impact and transformation brought about by AI is evident across industries. Companies are using AI and robotic processes to automate mundane and time-consuming accounting tasks with ease. This helps businesses save, manforce and receive accurate and precise results.

7. Workplace wellness: Accountants play a crucial role in maintaining workplace wellness programs. For Instance, an accountant has to ensure that a medical discount that is given as part of the program is calculated as withholding. Accountants also need to be aware of tax law changes that affect how wellness program expenses are counted as tax-deductible business expenses.

8. Online collaborations and remote workforce: Cloud based software has opened doors for successful online collaborations and remote work. With the help of the latest data sharing software, accountants are able to work for offshore companies and help them with financial aspects of the business.

9. Changes in tax policy: The accounting team has to always keep up with the new tax policies being implemented. One of the latest changes was made last year through the 2022 Consolidated Appropriations Act, also known as the COVID stimulus.

10. Evolution of the Accountant Role: A key trend that can be witnessed and is expected to continue in the coming years is the changing role of accountants. As most of the accounting work becomes automated, accountants will be seen as decision-makers and in similar roles. Their soft skills, paired with the expertise they possess in data analysis and financial matters, will help them become business leaders.

The accounting industry is going through some of its biggest changes. These upcoming trends and tech innovations have made it possible for outsourcing companies to collaborate with international firms and offer them accounting services. Businesses hire accountants for online accounting work in India due to the trust and confidence built by Indian accounting professionals in the market. You can hire dedicated accounting professionals from India who can cater to all your accounting needs, they are well-acquainted with the latest trends and technology available in the market.