As the finance industry grows more reliant on technology, many cutting-edge accounting software programs are emerging. They are redefining the way accounting is managed, automated, and optimized. More and more businesses are investing in quality accounting software programs for increased productivity and better outcomes.
In this article, we will discuss the latest accounting software trends in 2023. So, let’s get started!
1. Cloud-Based Applications
It won’t be an exaggeration to claim that cloud-based platforms are the future of accounting software. An increasing number of companies are moving to the cloud as it gives them better scalability, instant upgrades, and the ability to share real-time information. Companies today are actively investing in SaaS accounting software solutions to easily access data for business operations. Cloud-based accounting helps save large amounts of data, keeps it secure, and allows for easy collaboration.
2. GASB-Compliant Software
As cloud-based computing grows in popularity, more organizations, including government entities, use SBITAs (subscription-based information technology arrangements). The Governmental Accounting Standards Board (GASB) introduced GASB 96 in May 2020, focusing on SBITAs for government agencies to make reporting more transparent.
If your business falls within this sector, consider investing in a GASB 96 software solution to ensure your compliance with the new lease accounting standards.
3. Automation in Accounting
Accounting automation speeds up mundane tasks by reducing the number of steps in the workflow.
From approving invoices to putting data into your systems, everything becomes much more efficient and smooth with accounting automation, making accountants work smarter, not harder. Similarly, lots of other accounting tasks become simplified, e.g., subscription billing, revenue recognition, and even currency conversion. Organizations can also maintain budgets, generate forecasts, manage inventory, and track employee time to integrate it with invoicing. These are just a few benefits of automation.
4. Blockchain in Accounting
Blockchain’s modern-day applications go beyond cryptocurrency. Since this technology offers business organizations a transparent, immutable, and decentralized way of storing transactions, blockchain has become a vital area of interest in the world of finance. Also, combined with data analytics and machine learning, blockchain can optimize many accounting procedures, leading to efficient bookkeeping.
From eliminating the need for third-party mediators like banks to creating automatic invoicing, many promising advantages of blockchain in accounting are slowly emerging as this technology grows.
5. AI-Powered Accounting
Artificial intelligence (AI) and machine learning (ML) continue to affect the accounting software sector. Integrating these groundbreaking technologies into software solutions can lead to better productivity and fewer accounting errors by automating repetitive data entry tasks.
However, currently many businesses are reserving AI-powered accounting solutions for small-scale projects due to a lack of trust in this technology.
6. Data Security Is a Priority
As accountants handle sensitive data on behalf of their clients, data breaches deal a huge blow to their reputation and often lead to lawsuits.
That’s why more companies are investing in upgraded cybersecurity measures for accounting software solutions. A survey shows that 47% of IT leaders considered data privacy their third-most important tech investment in 2020. Accounting software users are more mindful of security issues, making data backups, security protocols, limited data access, and proper encryption in-demand features.
7. Real-Time Reporting Tools for Taxation
As more companies are indulging in business internationally and navigating global taxation laws, they are asking for real-time, flexible reporting features in accounting software solutions. It’s expected that every major tax authority will soon require real-time reporting features so they can gather customers’ taxation information instantaneously.
8. ERP-Integrated Solutions
Companies want accounting software to integrate smoothly with ERP, CRM, e-commerce, and other business software programs for ease of operation, helping businesses have a better outlook on their financial performance. This software-to-software integration leads to real-time visibility of a business’s core procedures, such as HR, services, logistics, and others.
So, properly integrating accounting software programs with ERP solutions will lead to streamlined data flow and comprehensive data reporting. This integration also brings about data-based, well-informed strategic decision-making, creating a more agile business environment.
9. Focus on User Experience
Another accounting software trend gaining traction recently is the focus on enhanced user experiences (UX). Many buyers are looking for this feature in accounting software solutions, such as user-friendly layouts and easy-to-navigate dashboards. A user-friendly interface makes it easier for employees to learn how to use accounting software and integrate it seamlessly with other applications. Enhanced UX also offers streamlined workflows to save time and make financial data entry an efficient process.
That’s why some of the most popular names in the accounting software industry have impeccable UX, showing that a positive UX ensures software remains competitive. Software with user-centric designs makes it less frustrating to manage finances, leading to many satisfied customers.
10. Better Business Analytics
It’s a no-brainer that business analytics can lead to quicker and more proper decision-making, mainly when working in unison with accounting software. Accounting software solutions empowered with a wide range of analytical capabilities can give businesses access to actionable financial insights.
Companies easily identify trends, predict market responses, and evaluate their financial performance thanks to data visualization tools built into modern-day accounting software solutions. Big data, as well as predictive analysis tools, are slowly becoming the new norm for newer accounting platforms.