If you’re like most people, you couldn't wait to wave goodbye to 2020 and welcome 2021. After such a volatile year that saw incredible change across industries, it’s worth looking ahead to what we can expect for accounting and bookkeeping operations in the new year. Here are some 2021 accounting predictions and how you can stay ahead of the curve.
Accounting shortage
Over the last few years, there has been a shortage of qualified CPAs in the industry. This looks to continue in 2021. The shortage has largely been caused by baby boomers retiring in greater numbers than the graduating classes of new CPAs. Because these two larger trends remain unchanged, the accounting shortage in 2021 will continue to challenge companies and firms. Accounting leaders will have to find creative ways to overcome staffing shortages, either by leveraging more powerful technology or by hiring people with non-traditional backgrounds.
Cloud-based systems
Because of security concerns and movements by software providers, 2021 will see more companies and firms moving their financial data to the cloud. Many accounting software vendors have been increasing their cloud offerings in recent years because of the benefits of a cloud-based system. Cybersecurity threats continue to evolve, making cloud-based solutions more advantageous as they can provide greater security protection. Because many companies will begin the year working remotely, cloud-based systems can also provide greater access to core financial data. With other business systems also moving to the cloud, accounting software will follow suit so that companies and CPA firms can enjoy the benefits of a more integrated and seamless technology infrastructure.
Business intelligence tools
Because accounting teams will be asked to do more with less in 2021, business intelligence tools are expected to become even more essential. Solutions like Microsoft Power BI allow accounting personnel to uncover key insights within financial data using cutting-edge visualizations and dashboards. This will be especially important for firms who want to go beyond simple bookkeeping to provide true advisory services to their clients. With more powerful data analytics becoming available, companies will increasingly adopt these systems and practices into their core accounting operations.
Microsoft Teams
For a while it seemed that Slack was destined to dominate the collaborative business software market. But now it appears Microsoft Teams will emerge as a key player in the space, if not the frontrunner. This is partly due to simple convenience as many companies already run on Microsoft Office 365 and get Teams included in their package. But Microsoft has also been working on expanding integrations for Teams to make the solution a more seamless piece of a company’s operations. For example, Gravity Software® (Gravity) is the only accounting solution that can work natively within Microsoft Teams because it was built on the Microsoft Power Platform. This allows accountants to manage financial data within the Teams interface, increasing efficiency by reducing time spent navigating between screens. That kind of seamless experience will make Teams a more integral part of many companies moving forward.
Accounting automation
A continuation of another trend that emerged over the last several years, increased accounting automation is expected to continue in 2021. Accounting solutions that can automate tasks by seamlessly migrating data from sales and other business systems save accounting personnel valuable time. This allows them to move past simple data entry and management to focus on uncovering insights for their company or clients. This is what makes accounting automation so valuable, and with more accounting software systems prioritizing this type of functionality, the practice will only grow in coming years.
Blockchain
It seems like we’ve been hearing about blockchain for years now with no significant movement in terms of its impact on core business operations. But 2021 may be the year that changes. According to the INAA Group, blockchain holds so much promise for the industry because, “The accountancy sector can embrace blockchain to track the ownership of assets and establish an unobstructed perspective over their internal workflows to maximize operational efficiency and stay within budget.” The technology could also be used to improve audit capabilities and track historic events. While it remains to be seen how blockchain will fit with existing accounting software programs and accounting operations, it is still worth keeping your eye on as the technology simply holds too much promise to ignore.
Want to elevate your accounting capabilities in 2021? Schedule a demo of Gravity today to see how our innovative solution can drive efficiency and uncover better financial insights for your business.
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