Today business tycoons are responsible for more than finance. Surveys have suggested that the duties assigned to CFOs are peaking. Increasingly more duties are now including overseeing their business’s digital activities and issue resolutions outside of finance.
Having the know-how of the latest business tech and staying close to future tech trends is imperative for today’s CFO, and current accounting and finance trends for 2021 should be on everyone’s radar.
Keep reading to discover emerging trends and the opportunities that accompany 2021.
- Automated Accounting Processes – Are No Longer Debated
Automated business processes in finance and accounting represent a considerable opportunity for business tycoons. Why? Because now CFOs are able to excel at their traditional role – optimizing operations and reducing expenses – while cultivating their experience with automation to become dominant to digital business process improvement initiatives throughout their organizations.
In 2021 we should expect daunting, repetitive, and decision-making tasks to be more simplified, optimized, and accelerated with smart automation software.
That means the information can be simplified and flow through the system with little to no human interaction. However, it doesn’t even mean that businesses should start replacing people with machines, but only to reduce error and eliminate misunderstandings. What’s more, slow-moving operations and waste are expected to disappear, allowing employees to perform at great levels of efficiency.
For instance, basic payment processes in accounting departments can be accelerated, allowing payments to take place within days instead of weeks. Most of the time, when an electronic and paper invoice appears, it requires assessment and approval by those who procured the product. It also has to be assessed by the finance and management department. In an everything-manual environment, this process can last hours or even days as it passes through every department in the organization.
In most cases, the invoice is lost or jammed in who knows what department. In 2021, we should expect increasingly more automated processes so the incoming invoices can be electronically stored, indexed, and routed for important approvals.
- Everything is Cloud Based
Cloud accounting is the gist in 2021 and maybe will be in the years that follow. It remains a viable solution for businesses in need to avoid significant upfront costs for traditional in-house software.
Thanks to the latest advancement in cloud-based accounting, CFOs, and other professionals are able to instantly access their accounting data, generating a real-time workflow with optimized efficiency saving valuable time.
Cloud-based services allow for seamless document sharing, instantaneous analytical data to help brand decisions, and detailed reporting, which are central benefits that make an organization choose cloud-based accounting solutions over its counterpart.
Organizations are now released from managing the IT infrastructure like “uptime, security, and scalability” are the only extra loads that hinder most companies. Today the cloud is a real advantage and opportunity for them.
- Remote Working Has Become the Norm
The recent pandemic only exposed companies’ ability to operate with remote employees.
The idea of working from an office was made a part of workplace culture by boomers. Today, it seems that idea no longer suits the best interests of companies or their workers. Professional accounting services are now able to work from home, and they work well. By now, remote accountants have had the chance to figure out a way to operate their businesses or manage their daily tasks from home and do so without any problems.
The latest technological developments and the emergence of AI and automated accounting systems helped remote accountants to continue to produce impeccable results. With many companies planning to have their employees permanently continue to work from home, operating expenses are lessened within the company.
- Seamless and Secure Audit Preparations
Internal and external audits must ensure detailed reporting and healthier business behavior. But it’s not just the accounting department that experiences the pain – we’re all affected by time-consuming document searches. This year, we’re expecting accurate monitoring of the audit processes to grow in importance.
Given the current situation, we can rest assured knowing that our technologies can make this process virtually painless. Cloud technology software has allowed accounting departments not only to work separately but also to remain connected and engaged with the rest of the organization.
Companies are now confident in performing audits remotely, and customers see this solution as viable enough. A smart document management solution improves finance and other teams to prepare audits with total control. 0 time wasted on daunting queries; only relevant information is allowed.
- Cybersecurity Needs on the Rise
With increasingly more businesses shifting to work-from-home policy, increasing your online business presence increases your business chances of cyber-attacks; accounting services are no exception. They are the backbone of our state’s economy which means their security should be a top priority.
It comes as no wonder that accounting services have realized the necessity of cybersecurity and are now taking it more seriously than ever. However, only discussing this matter won’t solve it.
Accounting services should be more aware of their cybersecurity in 2021. As such, they should start assessing their data security and even test their vulnerabilities. Why? Because malware is growing stronger than ever while hackers keep coming with innovative ways to perform attacks.
Most cyberattacks aim to extract money – a good example of such attacks is ransomware attacks; these attacks are incredibly costly. They can result in significant financial losses that may lead to business bankruptcy or severe consequences. Not only that, but a business income can be dramatically impacted as customers or clients will lose their trust, and clients are already hard to reach.
Data breach or hacking is a severe security issue that is presumed to be executed by experienced hackers or professionals. The thing is, cyberattacks can be done with limited knowledge without understanding the technical ins and ins-and-outs.
To ensure they remain protected from cyberattacks, accounting businesses should educate and train their employees on these matters. Not only that but promoting awareness about cybersecurity and best practices or hiring a cybersecurity professional is the only way businesses can face the harsh reality of 2021.