The accounting system is recording day to day transactions and prepares statements. Auditing is checking the final statements and preparing an audit report to convey the company’s financial position to the stakeholders. Auditors do the sample test with a random statement. Depending upon the facts and evidence, they prepare the reports. Auditors understand the different roles of the accounting profession. The accounting profession is changing as per employee skills and technical advancement. A blog is written to intrigue readers with a look back to 2022. The trends dominating the accounting industry are automation, cloud-based accounting solutions, data analytics, digitalisation, remote workforce, and cyber security, and ESG compliance, changes in accounting standards, outsourcing, and blockchain technology. Let us shed light on these technologies from junior and senior-level positions.
Automation:
Payroll management, ERP systems, and billing software are an example of accounting software that make use of automation. Tally is the ERP software that helps for managing the accounting, banking, payroll and inventory processes. Computers now do the manual process of the old accounting system. The invoicing, credit control, forecasting, reconciliation and cash flow reporting are the books that provide information about accounting operations. These manual books are now entered into the system and automated for accuracy. Accountants need to be creative and logical to understand the operations and automation procedures.
Cloud-based accounting:
Around the world, stakeholders access financial information from any location. This comfort is possible because of cloud technology. The access point and controls are designed as the best with the advanced level software solutions. Cloud-based software gives access from different locations and directs accounting operations with actionable insights.
Data analytics:
The MSME sector finds it difficult to manage operational and business challenges. The Payments, reimbursement, reconciliation, regulatory changes, lack of coordination and business transparency are the areas that need technical support. Data analytics help for preparing the final statements with accuracy. Data analytics help professionals predict the future. By understanding future challenges, accountants plan their strategies.
Accountants are replaced with robots. There are risks in the usage of technology. Chartered accountants and cost accountants use data analytics with expert knowledge. If junior-level professionals use data analytics technology, there are associations of the risk element. If higher-level professionals use data analytics, it improves perfection.
Digitalisation:
Digital payments help to get online access to the payables and receivables. Deloitte published a survey in 2018. This survey says that it takes around nine to ten days per month to fix the problems arising out of manual work. Digitalisation will reduce mistakes and make work faster. Recording the payments and receipts becomes easy because of digital payments. Digitalization helps the accounting profession to complete tasks on time.
Remote workforce:
The Global workplace analytics survey reveals that around 25 per cent to 30 per cent of the resource opt for work from home in the year 2022. The accounting profession is a live profession. These professionals need to interact with other departments if they need clarity. In such a valuable profession, jobs are now offered with remote work options. Some companies offer part-time work from home. This facility is reducing the overhead cost. And help to expand the geographical area of the company.
Cyber security:
Cybersecurity accounting help in understanding data breaches and threats. The financial records are like the pulse of the company. They explain the status and health. It is essential to keep the records confidential with the help of cybersecurity accounting professionals. Spam emails look like the advertisement of the competitors. These types of emails will steal your financial data. Ransom attack demand for online payment. They demand currency like bitcoin. This is a risky way of getting back the system. Malware and phishing are the two types of cyber security threats.
ESG Compliance:
ESG is a climate and nature-related financial element. It has become mandatory to include the ESG factor in the financial statements. ESG create opportunities and risk for the business. ESG increase the value of the firm among global investors. Before doing capital investment, investors think about the long-term growth of the companies. It also enhances the social responsibility of the company.
Changes in accounting standards:
In 2022, 32 accounting standards are operational in India. ESG accounting standards, cash received through an electronic system, sale and leaseback, intragroup financial guarantees, expected credit loss for loans, and sale and leaseback are some of the accounting standards with complexities in 2022.
Outsourcing:
Budgeting, reporting and compliance management are the divisions in the accounts section. The labour cost is less in India. The reduced cost is the reason for keeping the doors open to the outsourcing industries. Outsourcing companies work for foreign companies. Outsourcing business helps business owners focus more on other areas. Technological advancement help in completing the accounting work of other countries.
Blockchain technology:
Blockchain is a system-based process that helps complete the transaction between two parties. Auditors use data analytics and blockchain to complete the transaction-related process. Auditors use blockchain for external audits.
Conclusion:
The trends mentioned above are part of the year 2022. Technological and environmental changes are influencing accounting calculations. Accountants tend to record day-to-day transactions. Accounting is the base for the auditing profession. If the accountants are getting smart, there is a leap for the auditors also. Auditors need to understand the new laws and changing accounting profession to understand the financial statements. By implementing the latest technologies, the standard of the auditor report increases. The syllabus of global courses includes the latest trends in the accounting profession. Advanced-level technologies are creating new skills for the accounting profession.
