Top 5 Accounting Trends in 2023 and Beyond

Innovative technologies, developing economic models, newer business opportunities, and a rapidly changing regulatory environment mean the accounting industry is witnessing several established trends right now.

Accountants and the finance function need to do more and step up as thought leaders. Businesses and accountants need to stay on top of these trends to remain competitive and proactive too.

Here are the top 5 accounting trends that have all become certainties and will continue to dominate the accounting industry in the coming years.

1.   Data Analytics and Forecasting

Businesses of all sizes are increasingly using data analytics and forecasting models to shape their business strategies.

The accounting function is evolving rapidly to include data analytics and forecasting tools to assist businesses more effectively.

In the coming years, the accounting function will further refine data analytics to help shape businesses proactively in different fields including customer acquisition, marketing trends, after-sale services, budgetary controls, and so on.

These trends will help businesses identify profitable activities and maximize cost-cutting strategies. Data analytics, forecasting, and visualization tools will help businesses remain proactive in a rapidly evolving economic landscape.

2.  Digital Transformation and Cloud Accounting

Operating as an online business and leveraging the social media economy have become normal activities for businesses now.

The cost of leaving behind the competition is too big to ignore the digital transformation trends for all businesses.

It means the accounting function also needs to adapt and evolve quickly through digital transformation and newer technologies like cloud accounting.

Cloud accounting helps businesses access their accounting and finance function from anywhere and enhance data security as well.

The enterprise resource management software combined with cloud accounting resources can link all functions of a business and increase its operating capabilities manifold.

3.  Accountants as Value-Creation Partners

Digital transformation and cloud accounting technology will automate more accounting tasks than ever.

On the other hand, accountants will need to step up their analytical, data-driven, and decision-making capabilities.

Businesses will increasingly see accountants as value-creation partners rather than only number-crunching workers.

This advisory role of accountants will evolve further when businesses embed newer technologies and need to comply with changing tax regulations.

The recent COVID-19 regulatory changes and business environment showed the importance of accountants leading from the front as thought leaders.

4. Outsourcing and Hybrid Working Environments

The accounting industry has already witnessed an acceleration in outsourcing and hybrid working models in the last few years due to COVID-19 protocols around the world.

However, this rapidly evolving trend isn’t because of compulsion only as several other factors are also playing a key role here.

Workforce and skill shortage in the accounting industry is a key challenge. Cloud accounting and digital businesses make remote working easier.

Similarly, outsourcing and hybrid working models are often cheaper than hiring full-time employees for many businesses.

All these factors combined are pushing businesses to leverage part-time and outsourcing accounting services further and these trends aren’t going to diminish in the near future either.

5.  Changes in Accounting Standards and Regulations

With accelerated online and cross-border trading opportunities, businesses need clear advice on tax regulatory compliance requirements.

Regulatory bodies around the world are also introducing changes in accounting standards and tax regulations to limit tax avoidance and manipulation of existing rules.

Thus, the accounting industry will continue to see evolving trends in accounting standards, regulations, and tax implications in the coming years.