Accounting is dynamic and constantly evolving with time. However, like many busy business professionals, you may not have kept abreast of the latest trends in the accounting industry.
Fret not, as our accounting and bookkeeping specialists at Sensible Services ABC have identified the accounting trends that are shaping the industry.
Automation is En Vogue in Hammond, LA, and Beyond
The days of manually calculating figures for accounting and bookkeeping projects are giving way to an era of automation. Accountants are now automating tasks and resorting to cloud-based systems rather than keeping space-eating and costly filing cabinets and servers on-site.
Automation has paved a path toward the streamlining of processes, error reduction, and a sharper focus on efficiency. Leveraging tech and automation reduces costs and enhances competitive advantage. We are rapidly approaching the point where AI is integrated directly into accounting and bookkeeping to the point that professional accountants are liberated to narrow their focus on solving highly complex analytical problems.
As an example, we’ve quickly advanced to the point that robotic process automation is widely used to decrease audit processing time. The time necessary for such audits and contracts has shrunk from several months to several weeks for optimal efficiency.
There is no sense in spending human labor to perform the time-consuming components of accounting when parts or the entirety of those projects can be automated. Payroll, banking, tax prep, and audits can be partially or fully automated. Expect the application of AI and self-learning systems to continue expanding in the future.
Changes in Billing
Part of the accounting industry is shifting from hourly billing to monthly service fees. The transition to monthly service fees empowers accountants to offer crystal clear pricing, ensuring clients are more capable of managing budgets and developing strong relationships. Adopting this approach better aligns with such an approach is that it better aligns with client needs, heightening both value and efficiency.
Moreover, the heightened efficiency resulting from the incorporation of automation into accounting projects has also expedited the transition to monthly billing. Therefore, more accountants are likely to move forward charging clients for a service’s value as opposed to the length of time necessary to complete the task. Such an approach is also favored by in-house billers as it provides the predictability that is not possible with hourly billing.
The Shift to the Cloud
Accounting has transitioned to the cloud in unison with numerous other specialties. The cloud is advantageous as it regularly updates information that empowers both accountants and the businesses they serve to better analyze information and make well-informed decisions based on accurate facts and figures. Cloud-based accounting also guarantees that ongoing monitoring occurs as opposed to sporadic analysis.
The Rise of Blockchain
Though the price of Bitcoin has tailed off in recent months, its underlying technology dubbed “blockchain” appears to be here to stay. Blockchain technology is best described as a recording system used by computers to maintain a ledger of digital transactions between users.
Accountants are now implementing the blockchain in their line of business as it represents a trailblazing accounting ledger. This ledger is regularly updated and verified without the potential for corruption or alteration. The blockchain empowers users to view ledgers without delay, providing real-time updates as transactions occur. The blockchain also provides an opportunity to generate smart contracts, record accurate transactions, and provide invaluable transparency that holds a strong appeal to clients.
Stay tuned. Though no one can predict the future, there is a good chance that the blockchain will become an even more integral component of accounting and bookkeeping in the months and years ahead.
Schedule a Consultation With Sensible Services ABC
Our bookkeepers and accountants are here to help your business. Our office is conveniently located at 43225 S. Coburn Loop, 70403. We serve local Hammond, LA business owners and managers as well as others located outside of the city and region.