2021 is well under way – here’s a look at some major remote accounting trends that we’re excited about!
We observed a meteoric rise in remote working in the past 12 months. The adaption to remote working was more with compulsion rather than optional due to coronavirus restrictions. It’s worth mentioning that few industries had empowered remote working pre-pandemic days. The financial Service industry had started reshaping well before the pandemic could force us to adopt the work-from-home style.
Rapidly evolving remote accounting trends are fueled by the improvement in underlying technological capabilities. Cloud-based accounting is the future, empowered by AI and machine learning tools. More firms will reshape their finance and accounting data. With a shift towards cloud-based accounting, we will see more accounting jobs going remote.
The tech-driven modules of the financial service sector will empower more businesses. We will witness drastic changes in outsourcing accounting services. Cloud-based accounting will reshape the financial advisory services as well.
But did it all start with Pandemic or we could identify the shifting paradigms towards cloud-based accounting earlier?
Remote Working Trends Before and After Covid
Remote working trends were visible before the pandemic with an increased focus on technology adaption. The Pandemic restrictions accelerated the remote working condition in every industry.
A PWC research shows, only 29% of the Financial Services companies had their staff for remote working. After Covid-19 the figures have jumped to 69%.
Another research conducted by Gartner Inc. Reveals that nearly 74% of the CFOs are planning to shift their employees to remote working. Most of the respondents believe they’ll shift the workforce permanently to remote working.
The newer trends are largely driven by technology adoption in the Financial Services industry. More firms are realizing that technology is evolving for financial services. Artificial Intelligence and cloud-based accounting have reset the accounting working mechanism. More accountants now believe their job can be performed remotely.
So what does it all mean for your Accounting consultancy business?
It means that you need to join the innovation-led transformation. The costs associated with adapting to AI and cloud accounting are enormous. But then there are solutions too for such pragmatic issues.
Shifting towards Cloud-Based Accounting
Cloud-based accounting saves enormous time and costs for accountants. The firms utilizing the powers of cloud-based accounting generate more revenue than others. XERO tells us that cloud-based accounting firms earn five times more than without cloud technology.
Source: Xero
Now portray the broader picture of the financial service industry with newer client demands and tech-driven trends. The upfront high costs with modern technology can be reduced by joining with a trusted partner. Despite all the focus on new trends, employees in the financial services industry will need resources.
Accounting firms offering remote services must realize the opportunities to streamline their business models. Failing to realize the change in time would result in lost clients and business. The rate of change is rapid, as we’ve seen the shift in the remote working trends. Tech developments in AI or cloud-based accounting empower more businesses, present newer opportunities. At the same time, the cost of falling behind the technology will be irretrievable.
Defining the New Skillsets
The downside of automation and cloud-based accounting is the need to acquire new skills. Employees working in firms offering remote working jobs will need greater flexibility and new skillsets.
Accounting firms of the future will also require a broader range of services working remotely. Clearly defining the new challenges and realizing the industry trends should be the first step for your future strategic plan.
Clients have raised their expectations from CPA and financial consultancy firms. They seek a more varied and participative role from accountants now. CPAs have emerged as the new catalysts of the change in the financial sector. These client expectations are poised to remain from your accounting firm in the future as well.
Up-skilling and enabling the right technologies is the way forward for your accounting business. Effective communication and the right automation tools will hold the key to successful adaption to the remote working culture. Embrace yourself for the impact of new technological changes that will change the way you served your clients in the past.
Pransform’s Innovative Accounting Solutions for You
Outsourcing accounting services has seen a spike in the past few years. The pandemic restrictions affected the industry and disrupted the in-house services largely. As we have seen the newer tech-driven trends indicate the shift towards remote accounting function. In the wake of technological advancement and shifting trends, you’ll need to partner with professional and trustworthy partners.
The rise in automation of accounting and cloud-based trends have accelerated. The problem with adapting technology is that it is a one-time effort. It needs a consistent approach and a smooth transition. The costs of championing technology are not cheaper too.
At Pransform, we believe in empowering businesses to grow their revenues with cutting-edge technologies. We are a XERO-certified advisory firm with extensive professional experience. Join us if you want to stay ahead of your competitors in the new world of remote accounting.