Proper accounting can reduce your company’s expenses while increasing its upside. How do you achieve proper accounting, though, when business and technology are continually changing? Give attention to these five trends.
1. Migration to the cloud
Migration to the cloud is not just for tech companies. In fact, nearly two-thirds of accountants plan to adopt some form of cloud computing technology over the next two years with a third of them making the move in the next 12 months. Organizations across industries and all the functions within them are turning to cloud-based tools to minimize manual workflows, eliminate errors, streamline procedures and achieve secure, comprehensive data storage. And with the focus on user-friendly interfaces common across cloud software, each stakeholder group can view role-relevant information in real time, even if outside accountants handle the day to day. For up-to-date expenses, inventory, sales, projections and reporting, nothing beats cloud solutions to support informed decision-making.
2. Data-driven decision-making
With the accounting function capturing nearly every transaction a business makes and more accountants using cloud-based software, data is available and can be put to use by small and medium-size businesses and nonprofits nearly as readily as by multinational public companies.
From intelligent business plans and budgets that leverage data-driven forecasts and accurate business performance summaries to investment determinations, organizations have new opportunities to compete and grow when they effectively leverage financial data.
3. Fraud protection
Unfortunately, cyberattacks are a sign of our times, and accounting faces great risk of cyberthreats. As digital technology integrates more business data, cybercrime evolves, with hackers diligently gathering information and familiarizing themselves with their targets so they can maximize success. Ransomware attacks put organizations in the position of rewarding bad actors. To deter any breach or system exploitation, employees across departments and system end users need basic cybersecurity smarts and IT environments need vigilant vulnerability monitoring. Finance executives and accountants as trusted advisers can advocate for a culture of security. If business leaders can’t justify the expense of cybersecurity, finance and accounting practitioners can help them understand the business risk as a priority.
4. Changes in tax policy
As we continue to manage the pandemic, tax policies like the COVID stimulus provide accountants with new situations and challenges. These are new to the tax code and may still leave a significant amount of room for interpretation. With new subsidies like PPP (Paycheck Protection Program) and EIDL (Economic Injury Disaster Loan) or benefits such as ERC (Employee Retention Credit), a new understanding of total tax liability and tax incentives and credits is crucial in ensuring clients are minimizing taxes while maximizing benefits.
5. Outsourcing
Outsourcing accounting tasks is a popular business strategy among many companies. It allows business owners to focus on other tasks while reducing their costs on staff and overhead, especially as a business grows or contracts. Many accounting firms provide efficient and scalable services a la carte — everything from processing invoices and payments to registering and paying vendors and computing and filing taxes. Outsourcing provides continuity of service and expertise dealing with new regulations or other specifics as industries and the laws associated with them change. This allows companies to focus on their limited resources, increasing profitability. Consider reaching out to an experienced partner that assigns you a dedicated account manager to take the weight off your shoulders.
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