The world of accounting has changed dramatically over the last few years. From the COVID-19 pandemic to an increasing focus on digitalization – the way businesses utilize their accounting resources continues to evolve. Small business owners should focus on staying up-to-date with current trends to maximize accounting efficiencies and processes.
In 2023, small business owners have access to new technology to help them run their business more effectively. Taking advantage of these new tools and processes can help benefit small businesses and bookkeepers in many ways including eliminating mundane, repetitive bookkeeping tasks.
Five Accounting Trends in 2023
The role of technology and automation will continue to grow in 2023. A recent Deloitte survey found that over 75% of accounting processes are largely manual, however that’s quickly changing. Many professionals are implementing new accounting technologies to improve their budgeting, forecasting, reporting, and data analytics.
More businesses are using cloud-based accounting tools in 2023 that allow users and businesses to conveniently access their accounting software from the cloud. The cloud refers to servers that are accessed over the internet and the software and databases that run on those servers. Cloud-based accounting software allows companies to always be connected to critical data and automatically back up their data. Small businesses that don’t use cloud-based technology end up being tied to their physical location to do their daily bookkeeping tasks.
Big data in accounting helps businesses to make important decisions using concrete evidence, e.g. data. The term big data refers to massive sets of information that can be used to provide valuable insights.
Big data sets are large and complex in nature – meaning they cannot be analyzed by traditional databases or tools. In accounting, big data can be used to monitor and improve business performance, and create analytical tools to improve organizational efficiencies. Big data can help you detect and spot weaknesses in your business. Let’s say you’ve invested in a new service or product, if the data says the investments aren’t worthwhile, you can reduce spending and redirect your business resources. Access to big data provides business owners and their accountants with the tools to understand underlying patterns and trends.
Accountants use data analytics to identify consumer behavior, market trends, and predict spending. Data analytics explores and analyzes large datasets to find hidden patterns, unseen trends, discover correlations, and derive valuable insights to make business predictions. Data analytics can help companies evaluate current performance, mitigate future risk, and maximize future profits.
A growing number of companies have fallen victim to data breaches in recent years. A data breach exposes confidential, sensitive, or protected information to an unauthorized person. In 2022, over 446 million records were exposed due to data breaches and over 45% of US companies have experienced a data breach. With more companies of all sizes experiencing breaches – it’s critical for organizations to mitigate the risk of data loss.
Businesses should take extra precautions to protect their company data against breaches and attacks. Failure to do so can result in financial damages and a loss of consumer trust.
Leveraging the power of accounting automation can help your business make better-informed decisions with real-time financial insights. Businesses are using accounting automation in 2023 to automate tedious bookkeeping tasks and gain better visibility into their overall financial health through real-time accounting.
Businesses can automate manual work like categorizing transactions, creating journal entries and reconciling transactions by leveraging accounting automation software. With the help of artificial intelligence, businesses can drastically reduce the costs and technical complexity of bookkeeping and back-office tasks.
Using Docyt in 2023
Small business owners should be aware of accounting trends in 2023. Leveraging the power of automation will improve the efficiency of accountants and bookkeepers. If you’re looking to automate your accounting in 2023 – you’ll need the right tool to help you every step of the way, Docyt can help.
To learn how Docyt can automate your accounting, set up a free consultation with us today.