Over the years, bookkeeping practices and the accounting industry as a whole have seen many changes, what with all the technological advancements emerging. These days, it's become increasingly important to identify trends in the accounting profession as they can help people gain valuable insights about the future of the industry. At P3 Accounting, we know just how important it is to stay on top of accounting trends, so we've put together the top 2024 bookkeeping trends to help you stay ahead.
1. Increased Automation With Accounting Software
In 2024, even more accounting firms will be utilizing cutting-edge technology as a means of streamlining processes and reducing errors in routine tasks. This means accounting processes like data entry, data analysis, generating financial statements and balance sheet reports, and recording financial transactions can be handled by various software and tools.
Automating bookkeeping tasks is one of the many useful techniques to keep accurate records for a business, and more and more businesses are taking advantage of this technology as it allows them to be more efficient in their processes throughout the fiscal year.
2. Continuous Training Needs for Accounting Professionals
As technology continues to advance over time, those in the accounting profession must keep up so they can effectively and properly use the relevant tools and programs, all while handling newly emerging practices. Upskilling and prioritizing hands-on practice are also important in developing their decision-making skills, as well as handling evolving challenges brought by these technological advancements.
3. AI Integration in Bookkeeping and Accounting
In 2023, artificial intelligence (AI) and machine learning became mainstream and have, since then, been slowly but surely integrating into different industries, including accounting. AI has become another way to automate tasks in the field of accounting and data analytics and even help produce data-driven insights that can guide accounting teams in their strategic planning and risk management processes.
4. Focus on Tax Compliance
Tax professionals are responsible for keeping track of any changes in tax compliance laws so they can ensure accurate reporting, meet tax reporting requirements, and properly manage tax returns for their businesses. This means it's essential that the company expenses, revenue, income statements, financial records, and cash flow statements are carefully reviewed and adjusted as needed to avoid penalties.
As of late, the most notable changes in tax laws involved an increased income tax rate and interest-based restrictions on tax deductions. Additionally, the Consolidated Appropriations Act (2022) provided the IRS with funding, which allowed them to enhance the tax system in the country. As a result, accountants now have to make sure their financial reports and documents meet the new requirements and comply with the system changes.
5. Better Financial Data Security
Nowadays, accounting firms are implementing robust cybersecurity measures to protect confidential information from cyber threats. Whether you're a big or small business, investing resources in cybersecurity goes a long way in protecting your interests and financial data. Some of the ways to protect your financial data security include conducting regular security audits, updating software, and encrypting sensitive data.
6. Integrating ESG Metrics
Among recent accounting trends, the rise of environmental, social, and governance (ESG) metrics is particularly noticeable. Basically, ESG refers to a criteria used in assessing the sustainability and social responsibility of companies. In 2023, publicly traded companies started reporting how their business has impacted specific categories, including ESG metrics, salary increases, political expenses, and climate-related disclosures.
7. The Rise of Remote Work in the Accounting Industry
The pandemic caused a major shift in the workforce through remote work and hybrid work setups. However, post-pandemic times have shown that remote work only continues to become more prominent across different industries, including the accounting industry. While remote work allows for more flexibility among employees, it also presents some disadvantages, such as an increased risk of data security issues, hacked employee accounts, challenges in monitoring work, and miscommunication problems.
As a result, accounting companies and firms have taken it upon themselves to implement solutions to solve these problems, while also taking advantage of the remote work setup by making use of helpful features like virtual collaboration tools and cloud-based accounting software.
8. Increased Relevance of Blockchain Technology
Blockchain technology offers many benefits to accounting professionals. Simply put, it's a digital ledger containing financial transactions and records, ensuring that each record (called a "block") is safe from tampering, which secures the financial data as is and makes sure the information remains accurate over time. In 2024, blockchain technology will only continue to rise in the accounting industry due to its various advantages.
9. Growing Demand for Advisory Services
There's also a growing demand for advisory services in bookkeeping as more people venture into the business world. Many of these businesses will be looking for professional accountants and bookkeepers like P3 Accounting who can help them with decision-making, strategic planning, and general bookkeeping tasks. Their goal is to boost the overall financial health of their company and streamline as much of the accounting processes as possible while maintaining quality work.
10. Cloud-Based Bookkeeping and Accounting Solutions
As of late, there has also been a lot of focus on cloud-based bookkeeping and accounting solutions. Many companies opt for cloud-based solutions because it makes various processes easier and simpler. Aside from that, it allows them to access their financial data remotely while keeping the data safe and secure.
These cloud solutions are also incredibly flexible, as they can support double-entry bookkeeping, automatic data entry, and smart contracts. Additionally, these services make recording transactions, generating balance sheets, and managing invoices an efficient process for everyone involved.
11. The Surge of Online Filing and Digitial Signatures
Another avenue in which technology has dominated the accounting industry is in the surge of online filing and digital signatures. Nowadays, many online systems allow e-filing, which makes for a more efficient filing process (with less paper involved).
Many companies have taken to submitting various accounting documents and financial reporting requirements online and signing forms digitally, the latter providing security and serving as proof of authenticity. Additionally, it's just much more convenient to send files online, saving accountants both time and resources.
12. Ethical Bookkeeping and Accounting Practices
There's been an emphasis on ethical bookkeeping and accounting practices in the industry lately. Particularly, people have become more mindful of their company's environmental impact and their compliance with tax laws and governance practices. While most of these practices are hardly new, more accountants highlight their importance in order to build trust, avoid fraud, and meet ethical and professional standards to further catapult businesses to success.
Stay Updated on 2024 Bookkeeping Trends With P3 Accounting
Choose the accounting firm that clients trust when it comes to making decisions about their business and money; choose P3 Accounting! We offer expert and dependable bookkeeping services that promise accuracy, efficiency, and transparency in your financial management.
Interested? Give us a call today at 405-265-8383 to learn more about us and our services!
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