Every occupation comes with its own unique challenges and the accounting profession is no exception. Many of the current issues in accounting revolve around keeping up with technological innovation, as well as an increasingly competitive environment, which means adaptability plays a key role in this profession.
While the duties of the accountant used to involve a heavy amount of data entry, automated functions have shifted their primary focus toward financial advisement. Automation is one of the current accounting topics that seems to be sparking questions about the necessity for the profession. Before we explore accountancy issues, let’s quickly examine why the world needs accountants.
Accountants will always be in demand because they provide valuable insights into financial tactics and regulations that improve efficiency and reduce costs to a given company. In short, accountants will always be a necessary component of any company, but only if they’re able to adapt to the changing industry.
Now that we’ve highlighted the importance of the accountant role, we’ll be discussing some of the biggest challenges facing the accounting profession in 2022. These challenges include:
- An evolving account industry
- Automation of tasks
- Client relations
- New skill requirements
- Evolving tax regulations
- Competition in the accounting field
- Financial data security
The accounting industry is changing
One of the hot topics in accounting is the rapid advancement of technology and the ever-changing industry, so what does this mean for accounting?
The accounting industry is evolving and copiously trending toward the adoption of cloud-based systems which means accountants need to adapt to this change or they may need to find a new profession. But this technology isn’t here to steal the accountant’s job — quite the contrary. Innovative technology automates tasks in order to make the accountant’s job easier. Let’s dive into what makes automation one of the accounting hot topics.
Automation of tasks
Lack of automated tools and functions has long been seen as one of those pesky accounting issues but new technology that promotes automation is changing the game. Manually inputting data can be inefficient, time-consuming, and limit the accuracy of data. Automating these tasks reduces the time it takes to complete them and increases the accuracy of the reports.
Automation offers a great solution to many accounting problems by increasing efficiency, as well as improving the overall customer experience — a happy customer is a return customer.
Adjusting to setbacks caused by COVID-19 continues to be one of the biggest challenges facing the accounting profession in 2022. Therefore, it’s crucial for companies to address these setbacks to keep their customers happy and ensure the customer experience doesn’t suffer as a result.
Since client relations are one of the major current accounting issues, accountants should take advantage of tools and features that improve the customer experience. Some of these tools and features include:
- System flexibility
- Customer billing
- Customer data tracking
- Easy-to-follow customer emails
- Extensive Security
Maintaining a good rapport with your customers is only one piece of the puzzle. As the industry changes, accountants will need to adopt new skill requirements that will allow them to work in the most efficient manner possible.
New skill requirements
Another one of the current issues in the accounting profession is that it has new skill requirements.
More specifically, accountants will need to focus on understanding changes to business requirements and processes, and efficiently tracking customer behaviors.
Some of the most important accounting skills include experience in financial forecasting, financial analyses, and cash flow projections. The greater the proficiency in these skills, the more value the accountant will bring to the industry.
COVID-19 has caused uncertainty in the economy which is why it’s more important than ever for businesses to have accurate and informed financial insights to make logical decisions in the interest of saving money.