Accounting Trends for 2024
Accounting as an industry is dynamic and is constantly changing its working practices to adapt to changes in technology, laws, and economic trends. With the year 2024, there are specific trends that are becoming distinct in the future of the accountancy profession.
Rise of Automation
There is a trend towards automation and AI which is considered one of the most radical in accounting. Even simple and routine functions such as accounting, accounts payable, accounts receivable, record keeping, and financial statements are handled by software programs.
Benefits of Automation
– It saves time as the amount spent performing the most basic activities is reduced
– Minimizes human error
– Enables accountants to dedicate their time to more lucrative consultancy services
– Gives live results based on the financial figures and ratios
According to an analysis by Grand View Research, over 80% of basic accounting jobs could be done by robots by 2024. This will significantly lower labor expenses but, at the same time, redefine the demand for the competencies of accounting personnel.
Data Analytics and Visualization
One of the most notable trends emerging in the field is the increasing emphasis on data analytics and visualization. Business intelligence and prominent data instruments will become essential to draw financial information.
Dashboard Reporting
– Real-time and specific to the needs of individuals and companies, financial instruments will become the standard
– This will enable monitoring of KPIs and metrics that are most vital to the business strategy
– Provides leadership insight for decision-making on the outcomes of data processing
Predictive Analytics
– Point forecasts will be used that are based on complex stochastic models to estimate future performance
– Assessment of business scenarios and further predictions about the plans/strategies of the enterprise.
– Learn about the potential opportunities and threats before they surface in front of your organization
Data visualization also helps the accounting teams to look for other features, such as trends that would have been very difficult to notice while coming up with reports and statements.
Blockchain and Cryptocurrencies
Speculation on cryptocurrencies may have recently died down, but blockchain technology is set to become the powerhouse that will revolutionize the accounting and finance departments.
The adoption of these blockchain-based accounting systems could start becoming mainstream by 2024. Blockchain has also helped provide a clear and unalterable transactional record, which increases accuracy and decreases fraud.
Critical accounting applications include:
– Auditing and reporting
– Supply chain tracking
– Smart contracts
– Payment processing
Other forms of digital currencies, such as Bitcoin, could also increase their acceptance in trade and commerce. There must be some best practices on accounting for crypto currencies – whether as an investment, an expense, wages, etc. Most modern accounting solutions do not support crypto currencies’ price fluctuations.
Sustainability and ESG Reporting
Corporate governance through stakeholder management and consideration of environmental and social effects has been an emerging trend internationally. For investors, regulators, and consumers, the new trend is the call for companies to integrate ESG factors into their business.
It is expected that by 2024, reporting and assurance on sustainability will become more of a regulatory requirement for many large entities.
– Carbon management and assessing absolute values of the direct, indirect, and induced emissions
– DEI (diversity, equity, and inclusion) audits
– Treatment of employees, equal remuneration, and human rights sensitivity
– Sustainability of the company to relate to executive’s remuneration
Accountants must start developing awareness of the existing regulations and the modern tendencies in the sphere of sustainability reporting very shortly.
The Future of Accounting
These trends show that in 2024, accountants will hardly resemble the current crop of these experts in industry. Most direct calculations will be performed by a computer or other electronic devices. As it relates to the accounting industry, accounting professionals will have to shift their attention to more value-based services that they will offer to their clients besides also ensuring that their clients’ data is accurate.
The technological revolution is not set to slow down in the future; therefore, to remain relevant in the market, accountants need to be perpetual students. Those who can accept change as a reality, however, will discover that accounting is a rapidly evolving and thrilling profession assisting firms in tackling the challenges of the future.
