Companies and professionals working in specific sectors can begin to plan for the future by looking at trend research and then adapting their working practices accordingly. Trend research does not rely on a fortune teller with a crystal ball. Instead, it involves tracking key variables that can be used to forecast industry trends accurately. If you want to stay on top of the latest trends in your business, you need to be aware of the impact and potential opportunities for things like new technologies, employment rates, and population changes. In the world of accounting, trend research suggests there are many new emerging trends occurring. Here is a look at some that are forecasted to make the most impact in 2020.
Businesses Will Hire More Highly-qualified Accountants
As you will see in the following sections, trend research predicts a rise in the use of automation and artificial intelligence tools for the accounting industry. But do not make the mistake of thinking accountants will soon be out of a job due to the increased development of these technological breakthroughs. Accountants will always be needed to perform duties such as running risk assessments, giving financial advice, and providing consultation services on tax laws like capital gains tax and estate tax. Trend research shows that many companies are deciding to hire more experienced and qualified accountants to help them grow their businesses.
In 2020 and beyond, you can expect to see businesses hiring more certified public accountants. A CPA has fulfilled education and work experience requirements to become a licensed, certified public accountant. So, you can be sure that CPAs are the very best accountants a business can employ. To become a CPA, one must pass the challenging CPA exam. The examination consists of four sections. Each section must be successfully passed for the test-taker to complete the whole CPA exam. To give you an idea of how difficult the examination is, the latest statistics from 2019 show that only 50% pass CPA Exam.
Automation Tools Will Increase
The automation of accounting processes has already begun, and the trend will grow even more in 2020 and in the coming years. More and more companies are investing in automation solutions because they minimize errors and reduce confusion. According to a study by the Association of Chartered Certified Accountants, more than 50% of C-level executives in the accountancy industry expect to see further development of automated accounting systems. With popular accounting automation tools like Intuit QuickBooks, Xero, and Oracle NetSuite already being used by many companies, businesses can arrive at data-driven decisions more easily and quickly than ever before.
Artificial Intelligence Will Rise Up
Artificial intelligence may not currently look like the depictions of it in science fiction movies, but AI is most certainly already here and set to stay. In 2020 and the coming years, AI will become much more integral to processes and systems in many different industries, including accounting. The trend of machine learning and AI technologies is already increasing behind the scenes. AI powers many commonly-used tools like Xero and Hubdoc. For example, Hubdoc uses machine learning and AI to automate tasks such as receipt and bill capture, bank reconciliation, and data entry. Such tools allow both clients and accountants to obtain more accurate data and have more time to focus on other aspects of a business. According to a study by Forbes, 2020 will see the automation of more labor-intensive tasks like audits, tax preparation, and payrolls.
Author Bio: Bryce Welker is an active speaker, blogger, and tutor on accounting and finance. As the Founder of Crush The CPA Exam, he has helped thousands of candidates pass the CPA exam on their first attempt.