Although it may not seem like the most innovative environment, the world of accounting isn’t stagnant by any means. On the contrary, over the years, accounting methodologies have grown and changed to become more efficient and bulletproof than ever before.
One of the biggest paradigm shifts to ever hit the accounting world was the genesis of accounting software. This software lets businesses or individuals relinquish control of the complicated calculations and the piles of tax forms, allowing them to focus on the more creative aspects of their businesses.
While accounting software has been around for a decade or two now, it has seen a monumental spike in popularity in the post-pandemic world. Businesses that used to use in-person accounting systems simply because “that’s how it always was” may have been forced to make the switch over to virtual accounting due to the need to work remotely.
But that is just one change in the ever-fluctuating world of accounting. There have been several other big changes in the world of accounting that are worth addressing.
Blockchain technology is a huge development that’s not only in the world of finance or even global economics. While it can be hard to grasp and easily believe that the hype is overblown fully, blockchain technology could make accounting a lot more streamlined and ironclad, allowing for faster auditing and more secure records.
Automation is becoming more and more common in accounting and finance software. The ability to program a certain action and then have that action play out at a certain time or under certain circumstances can lead to much smoother workflows, alongside more time to do other things. In addition, using automated accounting can lead to a massive return on investment, making accounting software borderline crucial for any business with thinner margins.
After the pandemic, many businesses are treating the five-day in-office work week as a thing of the past. Instead, agile working is the name of the game for a lot of businesses. Agile working is similar to remote working but with a lot more options. For example, this allows businesses to hire the best people for their accounting teams without considering their geographical location, leading to a stronger, more motivated team.
Outsourcing has become more common in almost every industry, and accounting is no different. This means that rather than a business having to manage the transaction itself, keeping records and tabs on taxes, an intermediary will manage the transaction, passing the money from the customer to the business. Outside of taking stress off of a business’s bookkeeping, this can also help a business keep tabs on their clients’ dealings.
While these are four big shifts in the accounting realm, more are sure to come over the next few years. As the field develops, we’ll see what other new developments arise to improve the world of accounting.