As businesses are growing at a rapid rate, the software industry is constantly trying to match the pace with this progress. One of the key developments that businesses have seen in the recent past is the increasing use of cloud software.
A well-managed accounting system is necessary for any business, any day. To make the accounting process smoother and faster, cloud accounting software has been a great help for tons of businesses across the globe.
While the progress in the field of cloud accounting is constant, here are some emerging trends that we will be seeing in accounting:
Emerging Trends In Cloud Accounting Software
Increasing use of Mobile Apps:
Software vendors are constantly looking for various ways to make the business processes easier. Not just in accounting, increasing use of mobile apps can be seen in many departments such as human resource, marketing, communications, etc.
Majority of cloud accounting software is available in mobile apps. With the mobile app, an accountant can send and receive invoices, payments and have a close look at the accounts on the go!
The accounting matters can be managed irrespective of the employee’s location. Hence, the number of tasks/hour will increase and work productivity will increase. At this moment, there are fewer features in mobile applications, but we can expect fully functioned mobile accounting in future.
Automation
Automation has been made effective in almost every aspect of life. Whether it is a marketing activity or workflow or task management, automation saves a lot of time. In accounting, repeated tasks like recurring invoices, invoice generation process, data auto-filling etc. can also be automated up to a certain level.
Cloud accounting software can be linked to bank accounts so that accountants don’t have to manually enter the transaction details. For example:
Your business has sold the goods worth $10000. The software will enter this detail in your sales section. Now, every selling entry will expect a payment. So, when your customer will transfer the money to your account, the software will fetch all the transaction worth $10000 and show you all the transactions. You just have to select the right transaction. It saves a lot of time because you don’t have to manually enter all the details.
With the connection between bank accounts and accounting software, real-time statuses of accounts can also be known. Such features have the potential to transform the way accountants work.
Outsourcing
Businesses these days want to be focused on their primary goals. Investing time in other functions like bookkeeping, payroll processing, social media marketing, etc. can divert the focus from the main objectives. Companies have started the trend of outsourcing these days where they outsource the matters of an entire department to experts.
In the nearest future, accounting will be handled the same way. Experts will handle the accounts of businesses, so the businesses can focus on their prime objective.
Data Analytics
The accounting software does give you an overview of your company accounts. But, there will be much more to it in the near future. With help of accounting data, business trends and patterns can be analyzed. Hereafter, we can expect to see better analysis methods to conclude better decisions.
Effects of inflation, market conditions, new trends can be predicted. Businesses will have a better picture of future risks and this will help them to make better decisions.
Use of artificial intelligence is already increasing and in the near future, we will be seeing more of it. Will it eliminate the need for accountants? No, AI will eliminate the time-consuming tasks like data entry in the future, but there'll certainly be the need for an expert to analyze the results and conclude better decisions. We may see some advanced AI cloud accounting software which will ease the accounting tasks.
Sure, in the future, the tasks performed by the accountants will be performed by the software itself. But, accountants will have to offer irreplaceable functions on the table. Accountants will be performing the role of consultants.
Decentralization of Accounting Software
Recently, more businesses are launching platforms that offer integration to targeted business needs like human resources, accounting software, communication channels etc. Clients can choose whatever they want from these functions. There are more than one integrations available for each function. So, businesses can take their pick of any function they want and they will only have to pay for what they buy.
In the coming years, we will see this attitude of decentralization where businesses will adopt only the functions they need and not anything else. The same will be seen in the cloud accounting world. Today, the software comes with packages that software vendors decide. But, there will a 360-degree shift in this attitude.
Bottom Line:
The cloud accounting has streamlined the work processes on many levels. But, it still has a long way to go. With the advanced technology and mobile apps, the work processes will be faster and efficiency will increase.
About Symmetry50
We perform vital bookkeeping functions, such as accounts payable/receivable, payroll, general ledger bookkeeping, bank reconciliations, and financial statement preparation. As a business owner, you probably have more urgent things to do than to keep your own records and books. We take care of this for you, so you can get back to what you do best, the job of running your business and generating profits.
Author Bio:
Sanjay Darji works as a software analyst at SoftwareSuggest. His interests include accounting, asset management, performance management, photography, and food. In his spare time, he likes to spend time with his son and catch up on the latest technologies. You can follow him on twitter at @sanjaydarji01.