Accounting is a profession that seems straightforward at a glance. I mean, it’s just crunching numbers, right? While financial data is a core part of accounting, there are other things involved. E.g. leveraging assets, managing budgets, achieving financial efficiencies, and maximizing investments are just some operations that accountants handle in an organization.
As a business owner, you need an accountant to handle the finances of your business. Initially, it might seem like it’s not necessary, especially when the business is small. However, as you continue expanding, There is so much you need to keep track of. You have your accounts payable, accounts receivable, sales figures, annual statements, payroll, projections, cash flow, and taxes, to name a few considerations. The hours can really add up, especially on the taxes. Here is where the accountant comes in.
Below we highlight some of the tasks that an accountant performs in an organization:
Examining bank statements and reconciling them with general ledger entries
Examining expenses submitted by employees
Keeping an eye on incoming payments from accounts receivable and outgoing payments from accounts payable
Creating company financial reports with the above information included
Analyzing data collected in order to determine the state of the company’s financial health
Analyzing data to understand where the company is generating and losing revenue
Examining the proficiency of the software programs used to organize data
Generating financial reports that display the company’s profits, equity, and cash flow
Here are three trends influencing the field of accounting
Automated accounting software, such as QuickBooks desktop, QuickBooks Online, and other popular applications, are becoming increasingly influential in the industry. In fact, a recent survey found that bookkeepers and accountants spend roughly 86 % of their time on tasks that have the potential to be automated.
This doesn’t mean that accountants will be replaced by machines, though. Rather, the increased use of automation means that accountants will spend less time on manual tasks like data entry and more time on meaningful analysis.
Implementing accounting automation can allow accountants to streamline their workflows and become more effective. With these emerging technologies, labor-intensive tasks like tax preparation, payroll, and audits can be automated to reduce the amount of time and resources needed to move forward.
Transparency and Security
Among the most important trends in the accounting field are the increasingly high standards surrounding transparency in accounting
This effort has expanded upon the public’s expectations of accurate reporting to go beyond basic honesty. As a result, companies are now expected to report their financial statements to the public in order to paint a complete picture of their current standing and reduce uncertainty in the market.
Furthermore, since accountants are responsible for sensitive data, it is increasingly important to maintain strong security practices to ensure the safety of the organization or client’s private information. There is a need for advanced protection practices, and accountants need to stay up-to-date with current security measures in order to protect sensitive information.
Today, accountants and CPAs are performing tasks that require analytical skills at increasing rates, largely due to the proliferation of data across industries.
There are many applications of data analytics in the world of accounting. For example, auditors are using analytics to enable processes like continuous monitoring and auditing. Similarly, accountants who take an advisory role within their organizations can use big data to identify patterns in the behavior of consumers and markets, which can lead to investment opportunities and higher profits.
Modern accountants should develop an analytical mindset in order to keep up with trends in the industry and remain competitive in the workforce.
In conclusion, it goes without saying that accounting is a need for all companies, whether big or small. To avoid any issues with your finances, it is wise to get a qualified accountant to handle all your business financials.