1.CLOUD BASED TECHNOLOGY
Could-based technology will continue to gain strong momentum heading into 2018. This technology gives businesses owners access to real time data anytime, anywhere. With access to information comes the idea that business owners are making informed business decisions. However, to make informed business decisions data needs to be understood and interpreted appropriately. The ability to interpret financial data is where accounting and finance experts can truly add value to a business. Outsourcing your accounting services provides for cost-effective expertise, the use of shared resources (such as accounting software that you do not have to host or manage), and an efficient accounting process with little overhead, or start-up time.
2. SOFTWARE IMPROVEMENT / PROCESS AUTOMATION
Automation within accounting software has led to decreased human / physical interaction. This trend has allowed for decreased data entry, and other financial functions that were critical even 5 years ago. This leads to the need for less full time human capital. By outsourcing your accounting services you can hire in a way that will lead to efficient utilization, and effective management of resources.
3. INTEGRATION & TRANSPARENCY OF OPERATIONS
A trend in businesses is the demand for integration of operations across the company. Software has allowed for all departments to have the ability to seamlessly update one another. For example, as sales occur and are updated within the CRM system, accounting software can be updated automatically with this new information. Again, reducing the need for human intervention and full-time financial roles within an organization.
Due to the rise of the connected world, and the millennial generation now taking on leadership roles, there is a demand for increased financial transparency. Business owners need to feel comfortable that their financial information represents their company accurately before lifting the curtain on their company’s financials.
4. MORE BUSINESSES ARE OUTSOURCING
For business owners who outsource their financial functions they can spend more time on actually running their business, and decrease overhead costs. Outsourcing financial functions started small with companies outsourcing accounts payable, accounting receivable, general bookkeeping, etc. This trend has now moved to companies outsourcing their entire financial departments. A business owner who outsources their entire financial department has the ability to rely on qualified professionals who will provide a consistent and scalable approach to service.
5. DATA ANALYTICS
Not only having data but being able to analyze and understand what the data means is crucial to making key business decisions. According to a recent study by NewVantage partners “decreasing expenses through operational efficiency is the top data initiative underway among Fortune 1000 companies.” The ability to use real-time data, and place a monetary value on the data is a significant financial advancement for today’s businesses. Being able to leverage data quicker than your competitors is a key to remaining competitive in the marketplace. Outsourcing your financial functions can help you have the right expertise to analyze pertinent financial data and make key business decisions.
6. CONSTANT CHANGE TO ACCOUNTING REGULATIONS
President Trump and Tax Reform are two of the most used phrases in the past couple of months. This is one example of how accounting rules and regulations are constantly changing. Many of the accounting standards were developed before the rise of new service models such as AirBnB, Uber, Lyft, etc. Or what about the entrepreneur whose sole source of income is from blogging? The highest paid fashion blogger makes over $10M a year. Do you think she has accounting and financial issues to be considering? As new services and industries emerge they can also impact long standing companies. It is important to have somebody on your team who has in-depth knowledge of what the financial models and KPIs look like. Now is a critical time of change within the economy, and accounting and other financial professionals need to keep up with the changes at a rapid pace.
7. PREDICT THE FUTURE
Accountants used to be historians – analyzing past financial data. As business models change there is an increased need for accounting to be a key factor in decision making for businesses. According to the Journal of Accountancy “small business leaders consider their accountants to be the most important professionals their businesses use, and 71% of these respondents outsource their accounting services.” Accounting and financial professionals now need to have the ability to predict the repercussions of any significant business decision, so it is critical that business owners have the right experts on their team.
Journal of Accountancy