Accounting Trends That Will Likely Continue Into 2024
As 2023 comes to a close, it’s a natural time to assess what the new year could bring. In the accounting industry, 2024 is poised to usher in a new wave of technology and practices that could change how you keep track of your company’s finances for years to come.
This article explores five emerging trends that could each become a key part of the story for the accounting industry next year.
Flexible Accounting Solutions
Flexibility could be a buzzword for the accounting industry in 2024. Nearly half of all businesses use freelancers already and many others employ interim workers and outsourcing firms. We’re likely to see these forms of accounting grow next year as companies continue enjoying the savings and flexibility offered by alternative forms of bookkeeping.
AI and Accounting
Artificial intelligence was probably the biggest business trend in 2023, and it should only continue into 2024. For the accounting industry, that means both an increase in the proliferation of AI-powered accounting solutions and an uptick in the percentage of accountants who use AI as a partner in their work.
Blockchain
Blockchain is the underlying technology that makes cryptocurrency possible, but that’s only scratching the surface of its potential. Many companies are currently exploring how to leverage blockchain for accounting purposes.
You can think of the blockchain as an immutable ledger. This makes every transaction immediately provable, which can be very beneficial from an accounting perspective. It’s likely that efforts to utilize the blockchain will continue accelerating in 2024. We may even see the first popular standalone blockchain accounting product debut sometime next year.
Data Security
As companies rely more and more on technology, bad actors have ramped up their cyber attacks against them. The average data breach now costs companies $4.45 million, and data security has never been more important.
Accounting tends to involve significant amounts of sensitive data, which makes the industry a prime target for hackers. Because of this, it’s likely that data security will become an important point of focus for the industry in 2024.
Sustainability Reporting
According to some research, as much as 80% of the U.S. considers sustainability when making a purchasing decision. Younger generations are leading this trend, which suggests that a company’s sustainability practices will have an impact on its profits for the foreseeable future.
In the accounting industry, this points to an increasing focus on sustainability reporting. Accountants will likely be asked to track and report key sustainability metrics alongside the more traditional financial metrics they analyze. This could influence how accountants work and the kinds of platforms they use, among other things.
Benefit From the Latest Accounting Trends and Practices
It can be difficult to stay on top of the latest accounting trends as a business owner – let alone make sure that you benefit from them. That’s one reason why it could make sense to partner with an outsourced accounting service, like the one offered by CFO Hub.
We’ll make sure your business always leverages the latest accounting trends and practices so you don’t fall behind. Get in touch for a consultation to learn more about how we can help.