The accounting field is one of the most cutthroat industries known globally, and any company that specializes in this field needs to stay ahead as much as possible. With the dawning of the digital era, however, skills and experience alone may not be enough. One way to remain a standout among the competition is by implementing the right accounting software solution.
While choosing the right platform to use for your business can give you the technological advantage you need, it doesn’t hurt to gain insight into what’s going on in the industry. Paying attention to accounting software trends cannot tell you what the future holds, but it can give you a sense of what to prepare for. With a better view as to where the industry is headed, you will be able to prepare your business for the future, not the least use the right accounting tool. Below, you’ll find the latest data on accounting and accounting software, how the market is shaping up, the users are behaving and the vendors responding. This guide is designed to help you see the big picture at once in one sitting.
Traditional accounting practices like the use of spreadsheets or ledgers may be tried and tested but they aren’t exactly the most efficient methods for modern businesses. They tend to take up more time and they are error-prone compared to the current technologies available. In addition, they may not be enough to help you keep up with the increasingly difficult demands of the industry.
This is why it comes as no surprise that the accounting software market share has seen a steady revenue growth over the years. In fact, it seems that more and more accountants are gearing towards adopting technology in the near future to remain competitive or to satisfy client demands.
The cloud has proven to be one of the best platforms for all sorts of programs ranging from communication to business management. In the case of accounting, it can do wonders to make ledgers more accessible and collaboration among accountants simpler. What’s more, software providers are still finding ways to make their products more efficient. With that said, we can expect that more companies will realize the value of cloud accounting in the next few years.
However, it is best to note that the abovementioned accounting software facts do not mean cloud-based solutions will replace on-premise platforms any time soon. Many companies still believe that while cloud-hosted accounting can be more convenient, there are still many benefits to be had by using legacy systems.
SMBs represent 99% of businesses globally however, only a small fraction of SMB owners are equipped to perform accounting on their own. So, they often rely on their accountants to perform all their bookkeeping, tax calculations, and other accounting tasks.
While there is nothing wrong about outsourcing professionals for this job, it often leaves business owners frustrated once things go awry. This is because not all accountants can be on call 24/7 to help them keep their finances in order. The silver lining here is that there are plenty of free accounting software available to help them perform some basic accounting on their own and take control over their companies’ money matters. Consider these findings from various accounting software research:
Accounting automation offers a number of benefits that are simply too good to pass up. However, it is perhaps one of the biggest hurdles that businesses have to overcome in the next few years.
As of late, accounting software solutions have become more sophisticated in terms of automation and it is expected to continually evolve. However, many accountants are not equipped to operate the systems currently available, so this means that they will have an even harder time keeping up with the changes. With that said, companies should anticipate that they need to provide ample training before reaping the benefits of accounting software solutions
Artificial intelligence has become an asset to companies from various industries—accounting is no exception. Be it for bookkeeping platforms, invoicing software, tax management tools, or other types of accounting solutions, AI is being used to optimize processes. Hence, it is best that businesses apprise themselves about the utilization of this technology in order to make the most out of it.
Similarly, big data and analytics will soon become prevalent in the accounting industry. This is primarily because companies are slowly headed towards proactive than reactive strategies when it comes to handling their data. With accounting software big data, it would be much easier to see trends in your earnings and expenditures and plan for the future of your company.
From data input to processing, accounting can be tedious. So it makes sense for many companies to use technology to optimize their operations. However, while accounting software has undoubtedly grown in the past few years, it has yet to become the norm for all businesses worldwide. This is because many companies are still on the fence about using software solutions due to the challenges related to its implementation.
The implications of these accounting software statistics are clear: the future of accounting is headed towards technological adoption. Meaning, you will eventually have to bid farewell to your good old spreadsheet-based accounting processes to reap the benefits of accelerated AI-powered operations. So, despite the obstacles to user adoption, it is important to keep up with the times by understanding how to leverage new innovations in the industry.
However, you should note that this use of technology doesn’t necessarily lead to less work for you and your accountants. The evolution of accounting software may allow you to get rid of repetitive tasks but this is only to help you focus more on process optimization. After all, with more software solutions offering big data functionalities, you will be able to get more substantial insights on your financial performance or a more proactive accounting approach.
If you have yet to make use of SaaS for accounting, you might want to start checking out reliable accounting software providers. Be sure to pay attention to what kinds of accounting tools each vendor offers as well as what functionalities are included in their subscription packages. This includes choosing accounting software designed for Mac, if device deployment is a factor for you. This way, you will know if you are getting the best value for your money.
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