Top 4 Accounting Trends For 2020
This year will undoubtedly involve a lot of changes and uncertainty, but how can you prepare yourself. Accountants and Bookkeepers will need to stay up to date to the latest trends to stay ahead in the industry, regulations, and policy.
Cloud-Based Accounting: The rise of cloud-based accounting service providers
Surprisingly just over 45% of all firms are using cloud-based accounting software. However, we expect this to change as independent research has forecast that between 2019 and 2024, the market will grow at a CAGR of 8.5% with North America driving this growth.
The reason for this growth will be driven by the unrestrictive access it provides to the client. Cloud Systems allow you to access data remotely, track inventory, sales, and generate reports. Moreover, they can save businesses valuable time.
At the present time, 95% of Pegasus clients use our cloud-based accounting software.
Faster Fraud Detection: the war against fraudsters
Between the years of 2011 – 2012 KPMG recorded over 97552 fraud and dishonesty offences recorded by the authority throughout Australia the yield cost for the recorded fraud of $1,472,338,800 and total cost for unrecorded fraud of $696,447,640, totalling $2,168,786,400.
The cost to any firm arising from fraudulent activity is greater than a single dollar value. It should include damage to the company’s reputation, loss in revenue and additional cost to settle cases.
That is why 2020, a major trend for companies will arise to combat fraud faster by creating various methods and tasks such as using a highly secure document management tools to process invoices in order to decrease fraud.
Role of AI: no more frustrating admin work
The positive results AI has been producing across all industries will extrapolate into 2020. AI technology provides high-speed data analysis, as well as increasing productivity and accuracy which can reduce time and cost, and this will have a benefit to the accounting and creative industry.
AI will be part of the decision-making and in-depth analysis which can replace a lot of human roles.
Utilizing Social Media: A platform for everyone
A decade ago, social media was an unprofessional platform for businesses, but today all industries are using social media for several purposes; it helps improve brand awareness, increases sales and drives website traffic. For accountants, it is a tool to boost branding and sales which creates more exposure and it can demonstrate their expertise or help them learn more about an industry.
As far back as 2014, about 77% of accountants already used social media as part of their marketing strategy for their brand image. This figure will grow in the coming years as all social media platforms offer businesses the chance to establish their brand image.
For further information about how Pegasus Systems can assist finance professionals within the creative, marcomms and related industries, why not learn more about our services.