Top 5 Accounting and Finance Trends for 2025

As we approach 2025, the global economy is forecast to experience steady growth. The momentum of post-pandemic recovery is expected to continue, supported by strong consumer spending and improving labour markets across major economies. Inflation pressures are predicted to ease further, helping central banks move toward more neutral monetary policies​

Finance professionals in 2025 should prepare for an economic environment characterised by moderate growth, stabilising inflation, and increased focus on sustainability and innovation. This backdrop will influence decision-making across key areas such as finance technology (FinTech), compliance, workforce skills, and data management. 

As we look forward to next year, it is becoming clear that finance and accounting professionals are likely to be impacted by several trends and developments in 5 main areas:

1. Emerging Finance technology (FinTech)
2. Compliance
3. Remote work & Hybrid working
4. Skills and development
5. Data protection & cybersecurity

Read on and find out how we see the next 12 months:

Emerging trends in finance and accounting technology take centre stage. The ongoing integration of advanced technologies like Artificial Intelligence (AI), machine learning (ML), and blockchain will continue to transform the finance and accounting landscape.

Whilst large systems will continue to be the most capable, especially for big, complex organisations it is also true to say that an increasing number of micro apps will extend the capability of base systems.

To stay ahead of the competition this year, finance professionals will be leveraging technologies such as:

Cloud-based accounting

Cloud applications tend to be much more secure, with the software provider taking care of encryption and access control rather than the company.

Old accountants will be able to tell many war stories about the old days when accounting software was last in line for IT security patches.

The main attribute of cloud computing, the idea of having a central location for the app and storage, also lends itself to information distribution.

Arguably the biggest reason for the rise and rise of cloud accounting has to do with connectivity. Cloud applications live in a world where connectivity is the norm rather than an exception and the development of APIs was probably an obvious move.

Good examples of cloud-based systems that either use accounting information or report back into the ledgers would be:

• Expense management apps
• Payroll software
• CRM systems

Ultimately, understanding the specific requirements financial systems must be able to meet is critical for selecting the best software for your finance team.

AI in finance and accounting

In 2025, finance automation is likely to continue its march, which means that finance professionals will definitely feel the effects of the increased use of AI and machine learning for routine tasks even if they can’t immediately see it.

Read more on AI in finance and accounting in our detailed guide.

AI changes in 2025

• AI will continue to revolutionise the finance industry, automating medial tasks to allow finance professionals to take a more strategic approach.
• AI also becomes more of a threat, with an increase in AI-powered cyber attacks. The threat to 2025 comes from evolution and enhancement of existing tactics, techniques and procedures.
• With the adoption of AI in full swing, firms that are slow to adopt will noticeably fall behind in 2025.

Examples of AI in Finance

AI in accounting and finance is supremely suited to pattern spotting and this is something that will pay dividends in data analytics, either by increasing the speed of report production or by being able to process huge amounts of data to produce more robust conclusions.

For instance, AI can quickly learn how cash flow works in any particular organisation and can forecast balances, and develop methods of improving cash flows.

Below are some of the most innovative uses of AI in finance and accounting for 2025:

• Fraud detection - an area where AI is already making great strides because of its two great attributes; the ability to spot patterns and analyse vast quantities of data rapidly.
• Cash flow forecasting - AI-powered systems can give users the option to conduct a deep dive into report lines down to the transactional level, presenting true on-demand information.
• Trading - To investors speed and information mean money and AI has been deployed by many trading houses to allow them to rapidly spot market trends but also analyse company data to find opportunities that humans may otherwise miss.
• Risk management - A double-edged sword here. Whilst AI can assist greatly in risk management both in identifying risks and developing mitigation strategies, it is also in itself a risk.
• Compliance - another area that has benefitted from AI is compliance with Gartner estimating that by the end of last year, more than 40% of compliance tech included an element of AI.

After all, AI and automation are not here to replace jobs but shifting the focus towards more strategic and analytical tasks where human intelligence shines. Discover how automation can enhance Finance roles, not reduce them.

Business analytics

For any modern business, the days of monthly reporting on the 24th of the month are long gone.
Even for multi-entity groups, fast reporting has become the norm and the desire to access information quickly will only get stronger. AI and machine learning will turn vast amounts of unmanageable data into insightful information for companies and financial institutions, from start-ups all the way to the UK's central bank. This will allow teams in 2025 to benefit from enhanced decision-making, pulling businesses away from making decisions on bad data or ‘gut feelings.

Whilst the tech teams will continue to develop highly capable apps, managers will need to spend time on personal development and upskilling to ensure that they are able to produce perceptive and imaginative responses to issues and opportunities.

Open banking

Open Banking continues to gain momentum in the financial sector across the UK. In July 2024, the UK reached the milestone of 10 million consumers and businesses regularly using Open Banking, and this is only predicted to grow.

The update of Open banking has been slower than expected. Despite this, the open banking roadmap has now been completed, having announced completion in September 2024. Open Banking is poised to dominate the landscape in 2025.

Blockchain technology

As many have come to know, blockchain technology refers to a decentralised digital ledger that facilitates the transparent and highly secure recording of transactions. But blockchain is so much more than simply a way to sell questionable investments to the gullible.

The development of blockchain interoperability protocols will mean that instead of siloed applications, the industry will move towards a much more connected future.

The integration of blockchain technology with fintech is transforming the financial sector, leading to new models for distributed financial transactions. This convergence facilitates the creation of innovative financial services that operate without traditional intermediaries.

In 2025, we predict that blockchain will be financial transaction logging, reporting and analysis. Deloitte preducts that for 2025, blockchain technology will reach deeper into finance operations in supportive roles, but people will still be the heart of financial strategy.

Process automation in Finance

Business Process Automation (BPA) using ‘dumb’ automation and simple machine learning is now reasonably mature and in use across all sectors. Gartner predicts that 80% of Large Enterprise Finance Teams Will Use Internal AI Platforms by 2026. This will have a huge impact on how finance operates, leading to increased efficiency and reduced costs over time.

Rather more interesting is AI-based RPA (Robotic Process Automation).

With RPA, bots monitor transactions and ‘learn’ how humans deal with various situations, becoming ever more intelligent and capable.

Audit and compliance are two areas that could certainly benefit from some automation features and it is not without the bounds of possibility that AI will make inroads into the audit function in the next 12 months.

With Access Financials, KLM Engineering has seen a saving of 2.5 days on month-end processing by automating manual processes. Read the full KLM Engineering case study for more insights into the benefits of automating financial processes.

Finance leaders always have one eye on compliance and that certainly won’t change in 2025. Compliance will always be a very important aspect of the finance team’s responsibilities so what do we expect to see next year?

The key finance regulatory changes in 2025

There are a few main changes that we’re expecting to see in 2025 that will affect businesses and financial institutions in Europe and the UK:

• DORA
• AMLA
• NIS2
• PSD3
• Sustainable Finance Disclosure Regulation (SFDR)
• EU Taxonomy

Challenges of ensuring compliance

It may seem counter-intuitive but compliance management in finance is actually less about rules and more about people.

If we want to ensure that our systems and processes are developed and managed with compliance in mind, we need to start with a compliance mindset.

When all is said and done, compliance can only be improved if people understand why they are being asked to do things a certain way and what the benefits are.

How to efficiently manage compliance in Finance?

Good compliance practice starts at the top so the first thing to do is to make sure that the directors and managers of the business understand how important it is to lead by example. After all, if the senior manager is using the expense system incorrectly, then why should their direct reports follow the rules?

Communication is vital when you are looking to improve compliance practice so clear and concise what, why, where, and how comms will help. Identifying a compliance lead so that everyone knows who is in charge and who to speak to is also valuable.

In 2019, remote working in finance was often seen as a curiosity that couldn’t be implemented within most organisations. One year later, all of that had changed and, within a few weeks, businesses were forced to develop ways of working that allowed people to stay remote.

Recent studies show that there’s been an increase in hybrid job postings across accountancy. Research says that hybrid working is now the most common work style globally, and 87% of organisations report having a hybrid programme and 49% are planning to expand this in the next three years.

There has however been a pushback by employees for greater flexibility.

Is remote working more productive? The evidence seems mixed and is often tainted by personal bias one way or another but what does seem clear from academic studies is that team productivity is lessened whilst individual productivity is greater:

• The cloud, thought of as a technological curiosity only a few years ago has now become central to modern business life.
• A prime benefit of cloud storage is the increase in collaborative apps that allow the sharing, discussion and editing of apps by multiple people wherever they may be.

Go back 20 years and you won’t find jobs advertised for app developers, social media managers or drone operators. It is a good bet that, with the continuing pace of change, more new job roles will be developed in the next few years.

For example, we are already seeing AI prompt engineers in high demand so the effect of new technology is already being felt.

What skills do finance and accounting professionals need in 2025?

Skills in finance within 2025 extend way beyond working with numbers. Working professionals need increased knowledge in data protection automation, strategic leadership, and soft skills in order to develop in their careers.

A willingness to learn new technologies in this rapidly changing environment is essential for development in 2025 and beyond.

Almost the twin of compliance, data security is another area that is dear to the finance professional’s heart. We think that in 2025, cybersecurity in the finance landscape will continue to see a sea change in the way that threats emerge and how they are countered.

How Cybersecurity has changed in 2024

For a while now, cybersecurity has been a priority across organisations of all sizes and across all industries. This year as well, we've seen businesses and institutions turning to proactive security measures, and investing in threat intelligence and behavioural analytics to be able to identify vulnerabilities as soon as possible.

As expected, many are utilising AI-powered tools to enhance threat detection and make sure their processes are efficient and less prone to human error. No doubt, companies are constantly working to demonstrate robust cybersecurity practices to protect their data as well as their customers' information.

In other words, this year we've seen:

• An emphasis on using AI and ML securely
• Continued cybersecurity regulation and reporting
• The continued microscope on data compliance in finance

Cybersecurity challenges in finance for 2025

The larger the company, the wider its vendor and customer network and this simply increases the cybersecurity risk landscape. In fact, in a recent PWC survey, finance professionals have reported that data privacy and cybersecurity will be the biggest impacted area by regulatory changes over the next 5 years.

The problem is compounded when third parties have access to systems or are required to use apps to carry out their work.Finance generally has the ‘keys to the safe’ when it comes to data so quite apart from the risk of monetary theft, data breaches are also an area that needs to be attended to.The cybersecurity skills gap is a very real issue and finance is no exception in this respect.

There will be a continued focus on security concerns with fraud, money laundering risks and the emergence of AI-powered threats for impersonation purposes.

How to get data protection right in 2025

To mitigate risks, companies must first conduct a comprehensive cybersecurity risk assessment, identifying strengths and areas for improvement. Meeting Cyber Essentials requirements is a minimum standard for UK businesses, offering foundational protection. For those seeking advanced security, obtaining Cyber Essentials Plus and preparing for certifications like ISO27001 (information security) or ISO/IEC 27032 (cybersecurity) is essential.
 
A strong cyber response strategy is crucial, and must have full support from leadership to ensure that security measures are prioritised.

2025 is shaping up to be an exciting, challenging and interesting year in the world of the financial services industry.

We expect to see quite a number of developments in a variety of areas, some of which will be welcomed by finance professionals and some which will prove more difficult to navigate.

As we look forward, we anticipate:

• AI, machine learning, and blockchain will continue to be at the forefront of fintech technology in 2025.
• Whilst Open Banking has been more slowly adopted than originally thought, it’s thought it will dominate in 2025.
• Whilst remote working is preferred by many finance professionals, there has been an increased pushback to the office to enhance collaboration and this will continue in 2025.
• Cybersecurity and data protection.