Trends Influencing the Future of Accounting Software

As an accounting firm expands, outsourcing is an excellent way to cut costs, improve efficiency, and increase profitability. Here are all of the trends one should be aware of to make the most of accounting outsourcing for a company.

FREMONT, CA: The certainty for rapid and efficient digital transformation was already gnawing on the accounting industry’s circumference even before the pandemic broke out. The increase in employee resignations, rising churn rates, and repeated cases of data leaks in previous years made it clear that a massive accounting software upgrade was required. When understanding contemporary digital accounting tools, there is a lot to look into and take into account.

Prioritizing Enterprise Resource Planning (ERP)

As ERP systems add more variety to the workflow while managing accounting activities, switching from accounting software to them has become a burgeoning and steadily expanding accounting trend.

In a single application, an ERP system amalgamates numerous types of relevant data such as financial operations, production management reports, and accounting activities in order to make it easy to access and circulate across different teams. Besides, ERP solutions equip with customisable dashboards, assisting leaders to handle the business landscape, analysing risks, and making precise decisions.

The Rise of Hybrid Working Models

Although 70 per cent of employees favour working from offices, adopting technology that may give accountants the same efficiency regardless of wherever they work is a continuing accounting trend.

Proposing more mobility and suitability into the working model allows business leaders to cherish their employees on account of a 22 per cent turnover rate across accounting firms. Firms need to maintain a balance of their resources and investments, seeking more flexible data storage options and reconsidering their IT and hardware spending with fewer employees coming to offices.

Increased Focus on Data Security

Since well-known organizations are attacked by hackers, data security has been a constant concern for many enterprises handling sensitive client data. Business leaders need to rethink their strategy for storing data because hackers prefer to target databases, which includes modifying their database structure and implementing new security methods.

Accounting firms constantly upgrade their security measures to prevent cybercriminals from exploiting their clients and employees, as spear phishing, reaching out to company employees under the guise of a C-level executive or a trusted partner accounted for approximately 83 per cent of phishing attacks.

Zero Tolerance Policy for Data Discrepancies

In the world of professional accounting, inconsistent data has never been accepted. However, preventing these problems early on became crucial for the company's success.

The movement of intracompany data increases along with a company's growth. Recordkeeping is more likely to go wrong when there is more data to process. As a result, business executives prioritize reducing risks and creating reliable data chains. Since the pandemic, investors have become more hesitant to entrust their money to a company. They expect complete transparency from all transactions, audits, and reports they receive.