Welcome to The Ledger where we sum up the latest finance and accounting news and trends for you. On this week’s entry, we’re diving into the topic of what’s on the horizon and the new industry market outlook for accounting professionals in the new year. Read on explore what opportunities accountants should keep on their radar this year, what key accounting trends are expected to shape this year and beyond, the top three accounting trends that will attract new clients and retain current ones and the latest craze in accounts receivable.
What to Expect for This Year and Beyond: An Inside Look Into the Accounting Industry Market Outlook
What do your clients expect from your firm this year? If you’re like most companies, you want to make your customers happy. Moreover, you want to stay abreast of any new changes in your field. And when firms are willing to implement new technologies and prioritize customer experience, you can guarantee your bottom line will improve. Here are a few trends to put on your radar in this new year:
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The Great Resignation. If you have an unstable workforce, your clients will catch on and make the switch to your competitor. So how can you make your employees happy and retain top talent?
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Flexible work schedules
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Skills training
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Engagement
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Digital Solutions. Customers expect their accounting firm to provide the best service and that can only be made possible through the use of technology:
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Use technology to improve services
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Outsource tech security
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Automate what you can
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Customer experience. A customer’s experience can make or break your company. Here’s how to improve it:
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Expand niches
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Add new services
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Stay human
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For more on how this year will be filled with changes and new opportunities, read the full article on CPAPracticeAdvisor.com.
Key Finance and Accounting Trends That Will Shape This Year
Accounting professionals around the globe have been forced to adapt to these unprecedented changes – from new processes and remote work to supporting their company’s financial recovery. John Edwards, CEO at the Institute of Financial Accountants, divulges some key trends to look out for:
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Digital transformation. The pandemic accelerated the need for technology adoption into everyday processes. And companies that refuse to get on board are the ones that will undoubtedly sink.
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Auditing takes a front seat. Environmental and sustainability problems are key to a business’s survival. This presents a unique opportunity to the accounting industry as maintaining sustainability requires risk assessment and reporting skills.
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Digital skills gap. The need for AI-based accounting software has drastically increased over the past two years. And a 2021 Institute of Financial Accountants survey showed that 47 percent of respondents wanted additional AI training to better prepare them for the challenges they might face as an accountant.
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Cryptocurrency is growing. As one of the Superbowl commercials showed, cryptocurrency is becoming increasingly popular. And one major accounting firm said that it was the driver of productivity.
For an in-depth look at the new trends and what’s on the horizon for the accounting industry, head over to AccountancyAge.com to explore the full article.
What’s New in Accounts Receivable
A reliable accounts receivable process ensures a positive cash flow for your organization. In other words, this function is an important part of your financial strategy. Modern technology, such as AI and automation, have made it easier for companies to collect payments from clients faster than ever before. Take a look at a few AR trends that you can take advantage of this year:
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Make it convenient for your customers to pay you. Are you making it easy for your customers to pay you?
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Adopt contactless transactions. Allow customers to use preferred payment methods.
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Focus on cash flow generation. Offer your customers discounts with a deposit.
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Automate AR processes. Automated software helps improve accuracy and reduce late payments.
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Send constant unpaid invoice notices. Make sure your clients are always aware of unpaid invoices.
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Enhance your digital security. Prevent hackers from hijacking your cash or information.
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Implement AI-generated cash flow forecasts. Automatically generate rolling forecasts using accounting data.
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Automate alerts and reports. Configure your finance app to send you a weekly report.
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Leverage the flexibility of cash apps. Allow the end-user to either pay in full at checkout or in installments.
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Link your AR platforms to an ERP system. Improve your cash flow with faster AR collections.
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Introduce AR-focused apps. Integrate your current business processes with an automated AR platform.
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Offer AR credit line options. An easy way to automate your billing options, such as ACH or credit card.
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Forgive debt loads. Back up your company’s social justice mission by helping at-risk debtors.
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Incentivize your accounting team. Finds ways for your accounting team to be more creative at AR collections.
To explore more about how companies are finding ways to alleviate the financial stress and challenges their customers are facing, head over to Forbes.com to view the full article.
Finance and Accounting Industry Market Outlook for the New Year
Despite the twists and turns the last two years have brought us, the pandemic has also made way for new opportunities. As an accountant, you understand that things can change at a moment’s notice. So what will this year bring to the table?
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Climate change. According to Sarah Barker, partner and head of climate risk governance at Minter Ellison, “Climate change has evolved from an issue that was considered ‘ethical’ or non-financial to one that is broadly recognized as having material financial risks and opportunities.”
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New technologies. Alan FitzGerald, founder of Practice Connections Advisory, said it best: “The use of AI opens up opportunities to service a much wider audience. Being able to readily access data helps accountants build and tell a better story to clients about their business by cutting the time previously needed to gather and analyze such data.”
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Career moves. Businesses are wanting to expand. Nicole Gorton, director at Robert Half said it best: “Digital transformation is accelerating across every finance function, and it is a massive priority for finance leaders. There is a demand for people with cloud capabilities and AI automation from a finance angle. As a result, we are seeing an increase of 20 percent in salary expectations.”
To learn more about what trends are emerging and a complete market outlook in the accounting industry for the year ahead, read the full article on InTheBlack.com.
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