In the last two years, COVID-19 has brought many challenges to the business world, encouraging companies to make major changes in the way they work, including the way they manage their finances and accounting functions. The most influential changes have taken place in the field of technology, a trend that will continue in 2022. With the development of technology, the accounting, and finance sector is also changing. Although some rules and methods of work are the same – the sector is changing and adapting greatly, and companies that have not invested in finance and accounting technology are far behind the competition. What remains the same is certainly the need for accounting, but conventional methods can no longer be used in customer care. The coming year is full of promise when it comes to technology and digital trends that will impact us. Here are some financial and accounting trends worth exploring when it comes to the coming years.
REMOTE WORK AND EMPLOYEE SATISFACTION
With the outbreak of the epidemic, we had to rethink how we work and where we work to keep employees safe and healthy. As a result, many employees have already largely adapted to hybrid work models as well as remote work. With the changing workplace environment, companies are moving towards financial and accounting systems that employees can access securely whether they are in the office or working remotely, and are structured to provide fast and accurate real-time data.
In times of crisis and change, it is normal for people to reconsider their priorities and think about what is important to them. Retaining quality employees has never been more important, so it’s a good time to rethink employees ’attitudes and feelings to find out how you can best tailor their jobs. By implementing flexible working methods, you could help employees achieve a better work-life balance in the aftermath of a pandemic.
FRAUD RISK MANAGEMENT
It is clear that the risks of fraud are developing more and more after the pandemic due to the rapid technological adaptation to the “new normal”. Although companies have become more aware of the risk of fraud by external factors, it is sometimes difficult to detect a threat from within. It is, therefore, crucial to implement best accounting practices that not only prohibit employees or anyone from committing fraud but also give a clear picture of the company’s finances.
Failure to build appropriate control structures increases the risk of fraud. With this in mind, many companies are developing financial and accounting systems that automate procedures and enforce standards that restrict access, review, and approval of payments to authorized persons.
CLOUD ACCOUNTING
Accounting services are increasingly provided in the cloud. Data is shared through a sophisticated administration-managed system. This mode of operation ensures high productivity, and companies can access their systems at any time using cloud-based accounting systems, which is good for teams that have switched to hybrid modes or work from home. Tracking inventory, sales and costs is also part of data access. Furthermore, cloud-based solutions enable the construction of workflows, which saves companies time. Having such advantages motivates companies to switch to cloud-based accounting systems. It also allows accountants to establish a network through which it is very easy and simple to quickly share data within the company and to clients. However, to make sure your data is secure on your systems, you need to implement a quality computer security policy.
DATA SECURITY
Cybercriminals saw the major disruption caused by the epidemic as an opportunity to improve their own game and to attack the company’s weakest points. Because housing connections are less secure, employees who work from home are at significantly higher risk than those who work in the workplace. As a result, cybercriminals can more easily gain access to a network of businesses – and their financial information. Pressure to strengthen data access security has already been present and the trend will continue to grow. It is important to develop more security methods, such as multi-factor authentication, encryption, and employee security training.
AUTOMATED ACCOUNTING PROCESSES
Automation has had a significant impact on almost every industry, so it is no wonder that more and more accounting operations are being automated. This is the main business trend that will not go away so quickly. Automation reduces confusion and errors, making companies more likely to invest in automated solutions. As the process relies primarily on computers, there will be a growing need for internal auditors to verify financial inputs and data accuracy. Although many fear that they will be replaced by robots – this will not be the case. Every machine (in this case a computer) needs a man to control and issue “commands”.
OUTSOURCING OF FINANCIAL AND ACCOUNTING SERVICES
Almost every company uses outsourcing services. It is a technique by which a company hires talent at a lower cost. Outsourcing allows companies to save time while meeting deadlines. It also allows them to discuss progress with outside professionals. Outsourcing in accounting is a relatively new method, but it has already gained a lot of popularity, so it is expected that in 2022 it will grow even more. In accounting, outsourcing allows companies to focus on their primary business while leaving an essential item of finance to professionals. Outsourcing owes great popularity to the fact that companies that use outsourcing services in terms of accounting and financial services get more competent and reliable professional services, but also better results in terms of profitability. Also, outsourcing saves them money because professionals know well what the salaries, taxes, benefits, and obligations of every taxpayer are.
FINANCIAL CONSULTING AND OTHER ADVISORY SERVICES
Experts believe that a hybrid strategy combining accounting technology and financial advisors will emerge soon. This is due to the development of new analytical tools that allow accountants to focus more on decoding data for deeper insight and analysis. Decision-making, unlike other tasks in accounting procedures, will always be in the hands of human professionals and experts. Accounting firms can focus on the quality of their consulting services as more innovative technologies are introduced into the accounting business. Services such as profitability and growth strategies as well as business intelligence will expand. Because of automation, accounting firms will be able to devote more time to assessing data, providing insight, and advising clients.
Today’s corporate leaders expect financial and accounting services that go beyond just ensuring data compliance and record keeping. They also want proactive strategic support and guidance to help them make better business decisions. This paradigm shift requires companies to invest not only in state-of-the-art technology that provides greater visibility of financial performance but also in highly qualified staff in finance and accounting.
In line with these trends, financial and accounting affairs will continue to prioritize technological development in 2022. Technology, on the other hand, will not replace accounting and financial professionals, but will instead allow them to focus on data analysis, process development, and strategic initiatives. Contact our team of experts and learn more about these trends and how they can help your organization thrive in 2022.
