It is not easy to understand what will happen in the future, especially when discussing trends in the accounting industry. New technologies in accounting appear, and old ways of doing things become obsolete. Numerous accounting business owners feel the impact of automated processes and high-tech trends on their companies. As a result, we can see increased technological advancements and automated functions in the accounting industry. If we look at the future of accounting, technology might still be a few hairs away from the accounting industry, but it has started to function/adapt to these new improvements. We are quickly moving toward the trends in the accounting industry with cutting-edge technical features like cloud-based subscriptions, on-premise solutions, Software-as-a-Service (SaaS), and more.
Discover technology trends in accounting to watch out for and implement in your firm in this article. Then, let’s look at these a little closer.
Software Market Insights
With the arrival of trends in accounting this year, the world has seen many changes. Although these variations were less superior than expected, technological changes have started a new world. Consequently, we can see an increase in technological advancements and automated functions. Let’s take a look at some statistics and current trends in the accounting software market. We are sure that you’ll find them very interesting and helpful.
1. Adoption of accounting software
According to Gartner Software Market Research in 2022: among the 26 industries surveyed, engineering, real estate, distribution/inventory management, construction/contracting, and investment services have the highest adoption of accounting software solutions.
2. Top reasons buyers invest in accounting software
According to the survey, most respondents (53%) invested in accounting and finance software to improve productivity. The next top reasons for new software purchases are managing competitive pressure (41%) and outgrowing current technology (41%). It’s important to note that for more than 20% of respondents, business disruptions caused by events such as the pandemic triggered the need for new software purchases.
Here are of main reasons why companies invest in accounting and finance software:
3. Top business objectives of accounting software
For most accounting and finance software buyers, customer acquisition and retention were the top business objectives in 2022. Three out of five survey respondents said their business is prioritising attracting new customers and maintaining relationships with existing customers.
4. Features buyers seek in accounting software
According to the survey, the majority of respondents (85%) say user experience and training and support services are the main features they seek in accounting and finance software, followed by data privacy (84%), cybersecurity (83%), and reporting capabilities (83%).
“Optimize your product’s profile page on software review and rating sites with detailed information on the features and functionalities buyers want. Showcase how your product simplifies accounting tasks and improves workflows, and illustrate how user-friendly and easily navigable your software interface is. You can also use case studies and user reviews to demonstrate the prominent features of your product and build credibility among buyers.”
Trends Shaping Accounting Software Adoption
1. Big data and analytics solutions
Advanced data and analytics deliver high value for finance leaders. As per a Gartner survey, self-service data and analytics technologies are boosting employee productivity for nearly 50% of finance executives. Other new technologies for accounting driving high value include automated ML, cloud, big data, and predictive analytics.
Big data is the massive volume of data companies collect from different sources. Companies from the accounting industry should find ways to store this data, transform it into valuable information, and use it into actionable business insights to stay competitive in the market.
Using big data, companies from the accounting industry will provide their clients with valuable information, insights, and advice. By exploring massive datasets, they can analyze risk levels to forecast future results on a company’s finances and create plans instantly. Also, CЕОs, backed by big data, can concentrate more on planning, keeping control, exploring processes, and predicting issues before they happen.
For dividing different service values from competitors and making decisions based on accurate decision-making, most industries will be comprising data analytics by 2023. So, the demand for data experts will grow in the coming years.
The reason for this view depends on two aspects:
Analyzing complex datasets
Finding valuable real-time insights
This year, think of focusing more on data—data integrity, strategy, and governance. High-quality data is evolving even more critically as data is the basis for finance, industry insights, automation, and touchless operations. Also, guidelines for reliable data gain will see a radical upgrade by 2023.
2. Сloud-based accounting applications
One of the new trends is that buyers are investing in cloud-based accounting finance applications. With cloud-based accounting platforms, buyers get instant upgrades, high scalability, fast and low-cost deployments, and easy application integration. More and more companies are moving to the cloud, and accounting firms are following suit they create SaaS accounting software.
SaaS accounting applications allow you to access data from any gadget with an internet connection. This is a practical choice for companies with numerous locations or remote employees.
Cloud-based solutions are the future of accounting software, making it easy to share information and cooperate with others. It allows all team members real-time access to their data, saving valuable time. In addition, it has protected firms from significant upfront costs for classic in-house accounting services and software and increased security. This accounting trend generally saves time and costs and improves accessibility and safety.
3. Accounting Automation
Focus on expanding automation processes this year by building automation’s value case. Remember to start small and standardize the process—automating a flawed process will not deliver value. Then, evaluate the lessons learned over the past year throughout the catalyst for rapid transformation—deciding what to eliminate, begin, automate, and amplify—to refresh and reposition Controllership and provide more value now and in the future.
3.1. Invoice automation solutions
Invoice automation solutions are gaining popularity among businesses of all sizes. Gartner forecasts that the spending on accounts payable invoice automation and supplier e-invoicing software will surpass $1.9 billion by 2025, up from $850 million in 2020 at a CAGR of 17%.
3.2. Reporting automation
Reporting automation is providing buyers with higher value with lesser effort compared to robotic process automation. It generates reports on time without requiring users to look for information themselves, thus reducing errors and allowing time to analyze data.
It is crucial for people in the accounting industry to comprehend blockchain technology and how it will influence the industry moving forward. The blockchain is a technology that records and stores assets, liabilities, and transactions and delivers methods of documenting cash flow and reconciling accounts. Companies in the US are projected to spend about $1.1 billion on blockchain technology by the end of 2023 (Statistica).
Some blockchain-based applications have automatic invoicing, payments, and audit trails. In addition, the blockchain could help decrease the need for third-party mediators such as banks and auditors, saving the company time and money.
But, as with any new technology in accounting, some risks are associated with implementing the blockchain into your organization. So be sure to research before driving any plans.
5. ERP Integrated with Accounting Software
Real-time visibility into performance and projections remains aspirational since the finance platforms. So cloud ERPs with in-memory computing should bring real-time insights closer to reality this year as the demand for business insights continues to grow.
Standardized, high-quality data will become even more critical, as data is the foundation for business insights, automation, and touchless operations. As a result, finance will double down on massive data cleanup efforts, led by a data czar empowered to ensure data integrity and set the right governance strategy. In addition, many businesses will rely on their cloud-based ERP to fix their core data architecture.
Good data requires process and organizational changes, along with a leadership mandate. While nearly everyone complains about data, only some have landed on a solution. Would an ERP upgrade fix the problem? Are the data feeds the root cause? The answer is always complex.
6. Artificial Intelligence for Accounting
Bad data flow into automated AI systems won’t make efficiencies or result in valuable business insights. To discover its digital transformation goals, Finance will need an enterprise data strategy with a strong leader leading it. It will also need to sharpen its process and change management skills.
How Can Broscorp Company Help You In Account Software Development?
We’ve got years of experience developing high-end:
Broscorp has created Financial Reporting Software for analyzing cash flow, calculating profit and losses, maintaining the balance sheet up to date, etc.
Broscorp has developed Point-of-Sale Software to enable businesses to make sales and manage receipts through a user-friendly interface. Also, it tracks stock, updates catalogs, and analyzes losses using an analytical system.
Broscorp has built Expense Report Software that helps users stay updated with powerful accounting reports, including income statements, cash flow statements, and balance sheets. Users can also include inventory in tracking reports and manage goods and their costs and incomes.
Why Hire Accounting Software Developers at Broscorp?
Accounting software helps companies to achieve better operational efficiency. Better efficiency can be achieved by keeping track of goods, money, and stocks using properly developed accounting software. Broscorp has created various accounting software and helped businesses grow. We have experience building secure, efficient, scalable, and maintainable accounting software.
The software solution you get working with us is:
Tailor-Made. We create a specialized solution for your company, considering all your business features.
Secure. Financial and user-related data must be securely stored and handled to prevent any valuable information leaks.
Flexible. The designed solution is scalable and offers a flexible design. In addition, the simplicity of adding new features and maintainability reduces your expenses when a business gets traction.
Feel free to contact Broscorp today to get the best possible software development experience.
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