Every year, new trends in bookkeeping emerge as businesses strive to keep up with the latest technologies and compliance demands.
As we settle into 2022, emerging bookkeeping trends are already beginning to shape the future of the industry. We’ll explore seven of these trends below.
Bookkeeping Trends to Look Out for in 2022
1. The Rise of Artificial Intelligence in Bookkeeping
Artificial intelligence (AI) is expected to change the bookkeeping landscape in a big way over the next few years. Many firms are already using process automation software to automate repetitive tasks, such as data entry and invoice processing. This automation frees up bookkeeping professionals to focus on more complex tasks, such as analysis and strategic planning.
Bookkeeping firms that use AI will have a competitive edge in the marketplace, as they’ll be able to offer their clients more efficient and accurate services. Financial functions will be easier to complete, thus ensuring a smooth customer experience.
2. The Growing Popularity of Cloud-Based Software
Cloud-based accounting systems are becoming increasingly popular due to their flexibility and scalability. With cloud computing, bookkeepers can access their clients’ financial data from anywhere in the world, at any time. This is particularly useful for firms with global operations, as it allows them to manage their finances in real-time.
What’s more, cloud-based bookkeeping software is often more affordable than traditional on-premise software, as it doesn’t require a large upfront investment.
3. The Rise of Mobile Apps
As more people use their smartphones and tablets for work, it’s no surprise that mobile bookkeeping apps are on the rise.
Mobile apps offer a convenient way for business owners to stay connected with their bookkeepers virtually and manage their finances on the go. They also make it easier for them to track their expenses and income, as they can take photos of receipts and invoices and upload them to their bookkeeping system from anywhere.
4. The Increasing Use of Data Analytics
Data analytics is playing an increasingly important role in bookkeeping as businesses strive to make sense of the ever-growing pool of data.
Tools are available to help bookkeepers to identify trends and patterns in their clients’ financial data, which can be used to improve decision-making. What’s more, data analytics can be used to automate tasks, such as financial forecasting and report generation.
5. The Need for Compliance with New Standards
As bookkeeping standards continue to evolve, bookkeepers need to ensure that they’re up-to-date with the latest changes.
The most recent set of accounting standards – such as AS 4, AS 5, and AS 6 – are designed to improve the way businesses report their financial information. This means that bookkeepers need to have a good understanding of these standards to ensure that their clients’ financial statements are compliant.
6. The Expanding Role of the Bookkeeper
The bookkeeping profession is evolving, and bookkeepers are being called upon to do more than ever before. In particular, businesses are increasingly relying on bookkeepers to provide insights and advice rather than just processing transactions.
As a result, bookkeepers need to have strong analytical and communication skills to be successful in their roles.
7. The Need for Continuous Professional Development
As the bookkeeping profession evolves, so too does the need for continuous professional development. Bookkeepers who want to stay ahead of the curve need to keep up-to-date with the latest changes in standards and software. What’s more, they need to be proactive in developing their skills, such as data analytics and financial modeling.
The above are just a few of the trends that we expect to see shaping the bookkeeping industry throughout 2022 and over the next few years.
As with many industries, bookkeeping is constantly evolving. That’s why it’s important to work with a highly-skilled bookkeeping professional who can ensure your finances are both accurate and compliant.