Accounting is a vital element of the business process since a well-run accounting function can offer timely, exact, and appropriate information for decision making.
The following are a few of the upcoming accounting trends in 2018:
Automation in Accounting
Automation in accounting is a trend in 2018 that is fueled by software improvement. Accounting can now be highly computerized without the need for physical intervention. Most recent accounting software has enabled organizations to reduce data entry. This will lead to the proficient deployment of capital and better management of possessions.
Cloud-based technology will grow even stronger thrust around the business world in 2018. The notion of using common resources, including accounting software that runs on the providers’ servers and being right to use financial information in the cloud, has made accounting information handier and the process more professional.
Accounting functions generally used to be reactive in nature. This is changing now because of many factors, such as developing business models, systems, escalating role of accounting in building business decisions, the 2018 trend is for the accounting function to take a more proactive role in understanding the probable implications of any noteworthy business initiative, including tax impact. This allows businesses to run efficiently, without having to use major resources to undo accounting errors or to recognize and account for fresh business initiatives.
With the appearance of cloud computing, and the dominance and adequacy of electronic documentation in place of conventional paper-based vouchers, invoices, or receipts, accountants are now increasingly more mobile. Accountants can work remotely and there are currently many team sharing tools to enhance remote collaboration and work.
Outsourcing accounting can allow businesses to focus on their core and better employ their resources. Such a trend is not restricted to small and medium-sized companies; even immense companies are outsourcing their accounting and processing functions to business process outsourcing vendors.
Advancements in data centers, database techniques, and software have ushered in the age of big data and data mining to assist management decisions. The information generated by accounting has always been an essential component of business decision-making. Focus on data analysis of the fundamental accounting and financial information is becoming one of the key accounting trends in 2018.
Changes in Accounting Standards
Accounting standards are frequently being revised and restructured to keep up with the period. Various standards were developed before the arrival of social media, ad-tech, and the sharing economy. These latest business models have a large impact on accounting. Accounting professionals need to keep up with changes that are occurring at a much quicker pace than before. This trend will continue in 2018 and beyond.