The Accounting Trends You Need to Know About in 2021

If you don’t stay ahead of the trends, your competitors might. Accountancy is changing and software is king.

Here’s our overview of the top accounting trends for 2021 to help you stay one step ahead.

1. Accounting Software Solutions
Accounting software solutions have soared in the last few years. Everyone is going digital and so are accountants! Making Tax Digital forces all of us into software led solutions for our accounts, whatever business we’re in. The days when ‘doing the books’ really meant hand writing into books are over.

2. Cloud-Based Accounting
Everything is in the cloud these days: your photos, your music and even your passwords are stored in the cloud, so why not your accounts, too? It’s cost and time effective and gives you access anywhere at any time – you and your accountant. A faster way to share and respond to information, it can only be beneficial.

And yes, it is safe! Cloud based accountancy systems are stored securely with military-grade encryption that certainly beats a USB stick.

3. Automated Accounting
People are great but people do make errors. Errors in your accounts if unnoticed can be costly and not easy to spot to the untrained eye. Automated accounting processes save time, money and, perhaps most crucially, errors.

The automated software such as Xero also increases your ability to make data-driven decisions, giving you a range of information abut your business and your financial health instantly.

4. Work-Life Balance
Work from anywhere at any time. It’s so common now it’s almost the standard in the private sector! Save time in email exchanges and backups, and gain more moments to enjoy.

5. Accountants Are Becoming Advisors
Now the accounting industry is increasingly focusing on data analytics many accountants are shifting into more advisory roles. Developments in accounting technology allow accountants to offer more accurate insights and provide their clients with valuable advice. Information is up to date and available in live time meaning a true assessment of your financial health can be given at any moment.

Summary
As you can see, advancements in technology are driving more effective and efficient accountancy, as well as the ability to make smart business decisions based on optimised financial data. What are you waiting for?