In the past few years, the accounting and bookkeeping industry has evolved tremendously. The industry has witnessed several changes. Technology is driving change in the bookkeeping and accounting industry. Accounting automation is the new buzzword.
Thanks to advancements in accounting technology, accountants and bookkeepers no longer need to manage data entry, and have started performing the role of strategic advisors.
Here are some trends that will rule the bookkeeping and accounting industry in 2020 according to local bookkeeping firm, Virtual Jeannie Bookkeeping.
The Rise of Cloud-Accounting Software
A study estimates that around 78 percent of small businesses will be on cloud-accounting software by the end of 2020. Many SMEs are already using accounting software, while several others are ready to jump on the bandwagon.
A cloud-accounting software can give your business the edge it needs to survive and thrive in today’s business world of cut-throat competition. Cloud-accounting software can be used to build a cost-effective, decentralized accounting and operational infrastructure.
Cloud-accounting software platforms possess a range of functionalities. They are designed to optimize processes and automate manual tasks. Automation can save time, money, and headaches. With cloud-accounting software, you don’t have to hire a large team.
The Role of Accountants and Bookkeepers is Undergoing a Sea of Change
Gone are the days when accountants and bookkeepers were expected to manage data entry. The modern accountant should not be burdened with manual tasks. Businesses expect their accountants and bookkeepers to focus on more critical tasks, such as communicating with clients and creating a framework for aligning accounting policies.
Businesses are looking for accountants who can play the role of an advisory. Modern accountants need new skill sets such as critical thinking, communication, and professional skepticism to excel in their careers. Businesses are looking for tech-savvy professionals who can tap into data, and also possess interpersonal and leadership skills.
Focus on Data Analytics
Bookkeeping and accounting firms realize that data is the oil of the digital world. Many businesses are ramping up investments in digital and cloud-based technologies, designed to generate a steady stream of insights.
Accountants and bookkeepers are taking on new roles that revolve around analyzing data. Businesses are employing specialized teams trained to analyze data, which enables them to identify process improvement opportunities. Many businesses apply data analytics in tax, auditing, risk management, and consulting.
Planning to outsource your bookkeeping to a bookkeeping firm near you? Look no further than Virtual Jeannie Bookkeeping Services Inc. No matter how unique your needs, our team will come up with a customized solution, designed to address the unique challenges of your business. To discuss your requirements with a bookkeeping professional, call (707) 664-1425.