With the advent of new technologies, business tools continue to grow and develop. Change is a constant for growth, so start-ups need to keep up with accounting trends in 2021. Ultimately, understanding these trends will become necessary to execute their business model. With better technology, organizations can transform by converting manual tasks into automated versions. Therefore, better performance and more efficient operation can be obtained. This is where modern accounting trends come into play. Here are the seven most important accounting trends in 2021 that every startup needs to know.

Automated Accounting Process

One of the most important accounting trends in 2021 is the automated accounting process. Process automation eliminates confusion and reduces errors, which is why companies invest more in automated accounting solutions. Due to its high dependence on computers, organizations may become victims of any online fraud or security. Therefore, this leads to the need for internal audits to check for any data inaccuracies.

However, this new trend in accounting and finance will have a significant impact on the entire industry. Accountants will be able to utilize optimized data for small and large businesses. Automated accounting processes will push companies to make decisions based on data faster than ever.

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Cloud-based Accounting

Business owners can access their data anytime, anywhere. Business owners are always on the move, and increasingly use tablets and smartphones to access the latest financial data. With Cloud Accounting, they can view corporate account balances, outstanding invoices, overall cash status, and more from anywhere, 24/7, as long as they have access to an Internet connection.

Accounting Software

The current accounting market is extremely competitive. As most software migrates to cloud platforms, the requirements for using hosted software have risen. For the following reasons, more and more companies choose to adopt cloud-based accounting software solutions in their business applications:

• Friendly function
• Advanced Features
• Reliable solution

The accounting age shared their views that from 2019 to 2024, accounting software will take over the accounting industry. The predicted compound annual growth rate will also jump by about 8.5%. If forecasted by numbers, the amount is approximately $19.59 billion.

Remote Work Settings

In the third quarter of 2019, the latest report by the US Bureau of Labor Statistics (BLS) on the unemployment rate by occupation showed that the unemployment rate for accountants was 2.0%. Nowadays, it is difficult for employers to find top talents in finance and accounting. This is why it is more important for them to expand their search and recruitment requirements for candidates. For the first time in history, candidates specify some of their working conditions, including a flexible and remote working environment.

Therefore, accounting supervisors are adapting to the trend of allowing employees to work remotely. According to the 2018 survey released by Convergence Coaching, approximately 43% of CPA companies provide employees with regular opportunities to work from home. This was impossible in the past. However, with the advancement of technology and the emergence of computer accounting systems, accountants working at home can produce excellent results at work just like in the office.

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Focus on Data Analysis

As technology has made specific accounting tasks easier, the accounting industry has shifted its focus to data analysis. Accountant is taking up a new role as a consultant, and his unique skill set is developed around analyzing data. Analyzing the numbers helps companies provide valuable insights so that they can identify process improvements and increase efficiency and better manage risk.

Although the analysis as part of the accounting service is not new, it is now more powerful and presents financial performance in new ways to provide better actionable insights. Larger accounting firms apply data analysis to taxation, consulting, risk management and auditing. At the same time, CPAs in other organizations are leveraging the capabilities of the best data analysis solutions to support industry-specific needs.

Block Chain in Accounting

Block chain is one of the most important accounting trends, and by reducing ledger costs, the accounting industry has undergone major changes. For example, it provides precise terms for ownership and asset history. Block chain technology can clearly understand the available resources of an organization. In the past few years, projects led by block chain technology have experienced extensive growth. Recent accounting trends have seen more investment in block chain-based projects.

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Use Social Media

The influence of social media cannot be shaken even in the accounting industry. Social platforms are used in various fields to build brands, increase sales and increase network traffic. It has developed into an influential accounting sales and branding tool. This increases opportunities to support their skills and expertise, while providing ample opportunities to gain more knowledge about the industry. As a result, compelling social media strategies can lead to commercial success in business.

Platforms including Facebook and Twitter can help organizations keep in touch with customers and customers. Therefore, new accounting and financial trends will surely make social media platforms play an important role in marketing in the coming year.

All in all, the dynamic business environment has led to the resolution of key accounting trends in 2021. This will lead to more effective business decisions and considerable benefits.

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