Any finance professional will have likely spent the majority of 2020 trying to overcome various challenges. However, in 2021, CPA firms will need to be fully ready to tackle long-term strategies to ensure their business scale property and maintain profitability going forward.
Different trends are emerging in finance and there are plenty of opportunities that have accompanied the new year. Both of these require your accountant’s time and energy to maximise the potential for success within your business.
In this article, you’ll learn about some of the future trends that you should be aware of in the finance profession.
1. Remote Work
One of the potential silver linings that have come out of the newest pandemic is the fact that a lot of financial organisations have adapted to having remote workers fairly well. This is primarily because there are now existing technologies that make it possible to have CPA’s working remotely while still being able to deliver the highest quality service.
Even with a lot of organisations growing more and more comfortable with having remote workers, a lot of firms will still need to look at the security measures needed to take to ensure there are no costly breaches that they have to deal with. These breaches can cost you time, money, and your client’s confidence.
2. ESG Reporting
Even before the latest pandemic, ESG was quickly gaining more and more focus in modern organisations.
This type of reporting can help different businesses fulfil the mandates set forth to adhere to more corporate responsibility. Also, it has become a crucial metric that is used to deliver better levels of risk management and mitigation.
The primary focus on ethical and sustainability issues has continued to increase among board rooms everywhere. Responsible investing has also continued to get boosts in popularity among investors outside of the business. ESG criteria have continued to become a much more decisive factor for a lot of prominent stakeholders that were looking to gauge the performance of a business. Thus, it can be pertinent for any company to quantify the efforts with their ESG.
Future accountants need to do a lot of things. For one, they need to have technical skills, but they also need to combine them with optimal ethical standards and professional standards to ensure they meet the newer challenges properly. You can learn more about how a professional accountant can effectively measure ESG performance.
Going into the year 2021, automation is something that has become prominent in the space. It’s helped more than 91 per cent of all businesses improve their compliance efforts.
Along with this, using these newer technologies has made it much easier for accountants to save time. Instead of having to do a lot of the tedious and manual input work they used to have to do in the past, they can automate a lot of the tasks. With automation, they have been able to focus more of their time and energy on some of the more value-added tasks that offer human interaction and more careful analysis.
One of the biggest reasons it’s so easy to see that automation is not going anywhere is the growing role it has in enhancing human accountants. The fact is, automation has made it much easier to get rid of common errors and to minimise wasted time among accountants. A lot of the processes are able be streamlined using automation. Search bridging loans UK to see results.
4. Cloud-Based Accounting
There is much more to the technology trends beyond automation. Cloud-based accounting is getting increasingly popular. It’s become very popular among accounting firms because it allows these firms to reallocate a lot of their resources and minimise the hardware they need to have on-site.
This is linked very closely with the growing trend of having people working remotely. A lot of firms now have direct access to their accounting systems no matter where they are. These cloud-based accounting platforms has made it much easier for accounting firms to outsource the hardware and security issues that come with cloud-based accounting so they can prominently focus on the core competencies of their business. This allows them to focus on much more strategic tasks and efforts within their business.