Emerging Financial Accounting Trends

Businesses are now Outsourcing Financial Accounting Advisory Services and focus more on their limited resources. Accounting Service providers helps them to save employment costs like payroll, taxation, salaries, benefits, and training expenses. Most business processing outsourcing (BPO) companies use latest accounting software and deliver accounting, analysis and reports on a real time basis. Outsourcing financial accounting services also give access to skillsets, technology and expertise to companies which would not affordably replicate by hiring new headcount and investing in own infrastructure.

Most companies have adopted the trend of remote working through cloud-based software which allows teams that are physically dispersed to collaborate and accomplish critical financial processes like month-end close from anywhere with a computer and an internet connection. Tools like Video calling, Zoom, e-signature, file sharing, drop-box are all helping cloud based accounting to work efficiently.

AI is new field and is also impacting the finance and accounting process in general. Accountants are taking advantage of businesses using AI and Robotic Process Automation (RPA) to large data, automate repetitive and mundane tasks and focus on high value activities.

RPA shines when running discrete, simple, high-volume tasks that would usually require little human supervision like invoice processing, entering sales orders, processing refunds, and automating customer service responses. Further, during the financial close, balances need to be validated, Inter-company reconciliation completed, records must be consolidated, journal entries need to be adjusted, financial data is gathered to be disclosed, and then the adjusted financial statements must be prepared. There’s a lot of risk for error in these activities, and that’s where the hidden value of RPA will come in.

The Finance functions are now becoming more analytical. This is due to the fact that Technology & Automation help push the accounting and finance department from data collation and transactional activity to proactive and analytical. These tools also equip finance professionals with the strong critical thinking and problem-solving approaches due to vast data at disposal for analysis.

With Automation and AI on transactional work, Accountants must rely on the so-called soft skills, leadership, team management and strong emotional intelligence to deliver results. These skills, paired with industry related knowledge and training will help the accountants to leverage insight from data analysis and the financial expertise and help management.

Choosing to use virtual CFO services can give your company an advantage over others. That’s because specialists working for this kind of a service provider will not only have mastered their technical skills, but also be well-known for developing the skills needed to effectively manage teams and build strong relationships with clients.

Data breaches continue to be a bigger risk than ever and finance departments continue to be the leading targets. The breaches can be of identity theft, stealing of personal data or credit card information. In addition, spoofing (email disguised to appear to come from a known and trustworthy source) is also a common security threat. Training in these areas is crucial for accounting teams and help management is strengthening the cybersecurity for the organization.