What is the first thing that pops into your mind when you hear the term bookkeeping or accounting? Piles and piles of registers and papers crammed into a room. But, that is soon about to become a thing of the past. Accounting and bookkeeping services have come a long way from those days. Everything is digitalised today and everything is on the cloud. In this article, we will see what the future has in store for it. So, without further ado, let's get to the heart of the matter.
Cloud Accounting
This is perhaps the most predictable trend in accounting and bookkeeping. Cloud computing has been taking over and disrupting every industry that you can think of. The same has happened to accounting as well. Cloud accounting has made it possible for accountants to work from any location. They are no longer required to work from their office.
It also adds an extra layer of security by backing up the data on a remote server. Cloud accounting services have become very popular with small business who find it cheaper. For a small business, maintaining in-house servers to store data is not economical whereas a cloud accounting service offers them mobility, security, and processing power at an economical rate.
Cloud accounting naturally allows for increased automation of services as well. Bills can be generated from anywhere and its information will be immediately added to the cloud.
With easy access to internet and the option of choosing the work, many people are now turning into freelancers. Unlike those with a regular income, freelancers do not get a regular monthly income. Their income is based on the jobs they take on. It could be a lot in one month and none in the other. But, even freelancers require an accountant to keep track of their finances and take care of the taxes.
It would be a good idea for accountants to familiarise themselves with accounting for freelancers. Accountants will have to reach out to the freelancers online to gain them as clients. But, if you do a good job, they can turn into permanent clients.
For a small business, doing the accounting in-house means hiring more people and investing more funds to set up the accounts section. This isn't a financially viable option. For large businesses, the financial side is not an issue. But, finding talented people to focus on the accounting maybe difficult.
A firm that specialises in accounting will have the necessary talented personnel with good experience who will be perfect for handling your accounting and bookkeeping services. Consequently, more and more firms will choose to outsource their accounting.
Cloud Accounting
This is perhaps the most predictable trend in accounting and bookkeeping. Cloud computing has been taking over and disrupting every industry that you can think of. The same has happened to accounting as well. Cloud accounting has made it possible for accountants to work from any location. They are no longer required to work from their office.
It also adds an extra layer of security by backing up the data on a remote server. Cloud accounting services have become very popular with small business who find it cheaper. For a small business, maintaining in-house servers to store data is not economical whereas a cloud accounting service offers them mobility, security, and processing power at an economical rate.
Cloud accounting naturally allows for increased automation of services as well. Bills can be generated from anywhere and its information will be immediately added to the cloud.
Industry Specialisation
The basics of accounting remain same irrespective of the industry. But, there are certain specific characteristics of each industry. Clients have started preferring those accountants who have experience working with other clients from the same industry and are aware of its idiosyncrasies. The era of general accountants and bookkeepers is coming to an end. Accountants have to choose clients more wisely and ensure that they specialise in at least one industry.Accounting for Freelancers
Freelancers may not be the first thing that comes to your mind when you think about clients. So far, freelancers only made up a minority of the workforce. However, by the year 2020, almost 40% of the workforce will be made up of freelancers. Even those with steady jobs do a little freelancing on the side for extra income.
With easy access to internet and the option of choosing the work, many people are now turning into freelancers. Unlike those with a regular income, freelancers do not get a regular monthly income. Their income is based on the jobs they take on. It could be a lot in one month and none in the other. But, even freelancers require an accountant to keep track of their finances and take care of the taxes.
It would be a good idea for accountants to familiarise themselves with accounting for freelancers. Accountants will have to reach out to the freelancers online to gain them as clients. But, if you do a good job, they can turn into permanent clients.
Increased Emphasis on Customer Service
Unlike the old times, clients are no longer happy with an annual or biannual meeting with their accountants. They expect a more involved service. Customers expect regular updates and constant engagement from their accountants and bookkeepers. It is advisable to have monthly meetings with clients and be proactive about their accounts. Offer them suggestions on how to handle their finances and give them advice on the same. This fosters a strong relationship with the customer. Accountants should also look to use social media to connect more with their customers.Increase in Outsourcing
Increased connectivity has ensured that it is easier for companies to outsource their accounting and bookkeeping. The data uploaded from the company onto the cloud can be easily accessed by the accounting firm. Outsourcing makes sense irrespective of the size of the company.
For a small business, doing the accounting in-house means hiring more people and investing more funds to set up the accounts section. This isn't a financially viable option. For large businesses, the financial side is not an issue. But, finding talented people to focus on the accounting maybe difficult.
A firm that specialises in accounting will have the necessary talented personnel with good experience who will be perfect for handling your accounting and bookkeeping services. Consequently, more and more firms will choose to outsource their accounting.
