3 Trends That Are Affecting The Accounting Profession

3 Trends That Are Affecting The Accounting Profession

Many of the things we see as common today were only figments of science fiction writers’ imaginations forty years ago. Motion detector doors, self-parking cars, hands free cellular phones, global video chat, and medical devices that almost reach Star Trek’s “Bones McCoy non-invasive technology” are ordinary.   Change is happening rapidly in every sector, leaving no one unaffected. How is this impacting the accounting industry? What else is to come?

Fiscal management, and through that, accounting, has been at the center of human survival since mankind figured out how to trade and barter. We now have an established way to measure the value of any trade: money. And since, it has been a central figure in every cultural event.

When economists from the USA took over Germany’s fiscal policy after the First World War it resulted in the economic collapse that let Hitler rise to power in the 1930s. The massive expansion of government initiatives and spending from Lyndon Baines Johnson’s Great Society program resulted in economic collapse in 1982-83 during Jimmy Carter’s presidency.

Today, the European Union is facing financial calamity from having a unified currency without having any overriding economic policy control in twenty-eight member nations. The list of economic issues globally is endless…

Money truly is what makes the world go around. Accountancy is the profession that oversees the money, and whether they like it or not, the accountant’s world is changing at a relentlessly fast pace.

We have watched these changes over the past five years, and they are not trivial. This shift is not simply a push to be on the cloud, that technology has been around for a while. But what has happened recently these industry advancements have been truly significant and driven by the accelerating pace of change in today’s world.

While there are many aspects to these changes, most of them can be classified into three main categories:

  1. The rise of Cloud Accounting. No more are the days of emailing spreadsheets back and forth, finding errors and inconsistencies, and being reliant on a desktop accounting system.
  2. The focus is on helping small and mid-sized businesses. Accountancy firms have begun to provide advisory services, not just tax and compliance.
  3. Advances in technology have increased efficiency. Many solutions available now that simplify and expedite so many processes in accounting firms.

These three categories of change, combined, have paved the way for accountants to easily provide high-level advisory services to their clients. Features and services that were previously only available to large multinational corporations are now available to SMEs. In many cases, the seamless integration with real-time data in accounting software has provided tools and benefits far beyond what is being done in Fortune 100 companies. Read more on CPA Practice Advisor.