Top 5 accounting trends in 2022
1. Digital transformation
Technological developments are still the central topic of discussion in the accounting profession, and the automation of more and more of the administrative day-to-day processes will become increasingly common. Streamlining tasks like reporting, invoicing and expenses management are what many finance teams are turning to, to save time and boost efficiency.
This, together with capacity for much greater and more sophisticated data analytics — also performed automatically — means that business decisions will be much better informed than was ever possible before.
2. Team integration
Integrated teams — with IT and HR.
The integration of a business’s IT systems into one business management software suite, collecting and processing data from the whole organisation together, means that the lines between some departments are blurring.
In 2022, look out for more businesses experimenting with moving both their HR and IT roles from independent divisions into more specific roles for each and every department, dedicated to supporting that team’s requirements.
The greater access to data that ERP systems give means that companies such as Octopus Energy are seeing a more effective use of these skills, so expect others to try it out.
3. More focus on employee satisfaction
Throughout 2021, the ongoing pandemic, and the pressure on businesses that it created, made employees focus more on their job satisfaction and re-evaluate their priorities. As a result, many took advantage of the rapidly loosening UK labour market, and this will continue well into 2022.
As a result, businesses will need to focus more on what they offer their staff — not just pay, but extra support.
Flexible and permanent home working schemes will be commonplace, and the financial management software people use will become more intuitive, allowing them to focus on the more rewarding aspects of their job.
4. Advisory services
The automation of administrative tasks, and the time that unlocks for accountants, allows accounting firms and departments more opportunities to focus on providing advisory services.
Strategising for growth and profitability is becoming a more accurate practice, thanks to the greater data analysis afforded by finance management systems. Providing insights and advice is both more profitable than bookkeeping and a much more effective use of accountancy skills.
Download our free guide to learn more about automating your finance and accounting processes.
5. Data security
Financial departments and accountancy firms are among the most significant targets for data breaches. The amount of personal and commercial information available for identity theft, payment details to steal and other information means that employees must be consistently well trained and aware of new threats.
The paperless nature of a good finance management system, with the best advice on how to use it effectively, mitigates many of the risks, and is another reason why their adoption will continue to increase in 2022.
Why finance teams need to stay ahead of accounting trends
The accounting industry, like many others, has undergone significant change over the past two years due to the pandemic. There’s been a shift in working habits, technology adoption and employee expectations.
When combined, these make for a very different outlook in the world of business finance. Finance professionals now expect greater autonomy and control over how, when and where they work due to the remote working trend. And 2022 predictions for accounting trends believes agile working will be important.
The incoming Generation Z and the younger end of Millennials, have both grown up with technology and are more tech savvy than any generation that precede them. They won’t accept working with outdated or clunky technology in the workplace and will expect finance professionals to embrace technology.
If finance teams don’t keep up with the latest trends they could find that retaining and attracting the best accounting talent is much harder. And of course, this grows into a wider issue. Without the right tools and the best people, the effectiveness of the finance team is impacted and the value to the business greatly reduces.
Finance teams need to stay ahead of accounting trends because the expectation within business that they are there to forecast, model and guide their business’ financial spending and outlook, continues to grow. Finance teams are no longer just an administrative function to provide past figures.
Therefore finance teams are faced with the pressures of adopting new technology and best current accounting practices by colleagues, directors and the industry. It’s a real challenge but one that finance teams will reap the benefits of if they embrace what modern accounting technology can bring.
Is accounting a dying profession?
The longevity of accounting as an occupation is a common question now, thanks to the misconception that accountants will inevitably all be replaced with robots — a prophecy that’s been kicking around since the 1960s.
These naysayers’ arguments focus on Robotic Process Automation (RPA), and the fact that the technology will take the jobs of accountants, reducing demand for their technical skills and closing down opportunities for budding professionals.
This is, of course, completely wrong. Instead, RPA is about automating the more time intensive, repetitive and monotonous tasks, freeing up accountants’ time to use their skills on more complex jobs that hold value.
This technology is cloud-based and constantly evolving, supplementing the skills of accountants rather than replacing them. A 2020 report by Proviti revealed an enormous 73% increase in employee engagement thanks to RPA, which will only continue.
Learn more about cloud-accounting software and how it can support your business needs.
Why switching your accounting software could empower your business
Keeping up with change means that your accounting software has to be not just fit for purpose, but fit to evolve in the future.
As one of the more recent trends in accounting, the cloud tech adopters have been reaping the rewards of more engaged employees, with working hours better spent and a happier team as a result, and competitors will be considering how to emulate that.
Simply having some element of technology for accounting, though, does not always yield the same results.
Indeed, having systems for each process that don’t communicate with each other is just as much of an Achilles heel. Similarly, a system that can’t evolve freely with a business and its accounting team hinders progress.
To choose the right accounting software partner for you, look for a provider that will guide you through the entire implementation process and advise what is best for you and how to use the system to its maximum potential. The provider should be an extension of your own team, on hand to offer advice for both day-to-day usability and for your business’ long-term growth.
Are you looking for powerful and reliable accounting software? Download a brochure to explore the features, or book a demo to view our accounting software in action.
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