Technology advances quickly overall, and accounting software is no exception. Software developers are constantly working to improve their products and stay up with the demands of accountants and business owners.
- 7 Emerging Trends in Accounting Software for 2022
- Increased adoption of cloud-based accounting software
Software-as-a-service (SaaS) has emerged as the obvious alternative for expanding businesses as opposed to on-premise solutions, which demand costly hardware, hosting, continual updates, and a specialized IT department to maintain it all. Changes are released more often and automatically by SaaS providers, and the costs of their subscriptions cover these updates. As a result, there is no longer a need for significant up-front capital expenditures, and you may make more affordable monthly payments. Teams find it simpler to collaborate when using cloud-based solutions since they can access them from any location and know that the data will always be current. Cloud accounting software's adaptability makes it simple for expanding firms to scale. Simply increasing your monthly membership allows you to add additional users or services.
- Increased accounting automation
The trend toward more automation of accounting procedures is one of the newest developments in accounting software. Through the elimination of manual processes that slow down operations, accounting automation software increases efficiency. Additionally, it frees accounting professionals from getting mired down in the details of the day-to-day work to concentrate more on analyzing financial facts. The aim of accounting automation, which can take many different forms, is to reduce the amount of manual data entry, reduce the number of steps in workflows, and simplify the entire accounting process. Automated accounting software features are anticipated to grow in sophistication to assist accounting staff in working more efficiently rather than harder. These features range from invoice approval procedures to entering sales data into your system and automating revenue recognition. Additionally, it lessens errors and business risks associated with manual data entry, including the requirement to copy and paste information from a single invoice into numerous spreadsheets for various businesses.
- More system integrations
The efficiency of manual tasks can be increased by automating them. One more is to enhance data connectivity inside your company. For this reason, more system connections are being introduced by software vendors to link your accounting software with the rest of your company's systems. For instance, integrating your CRM system with your customer and financial data can help your sales staff increase revenue by streamlining the sales process. It will always be simpler to facilitate these connections and offer the kind of interoperability businesses need to be their most effective when an accounting system is based on a bigger platform that natively supports other apps and systems.
- Real-time reporting features
The adaptability of reporting elements is a further emerging trend in accounting software. Real-time reporting is increasingly more crucial for businesses to have access to due to the growth of international trade and the complexity of international tax regulations. Accounting software systems will need to adapt to support these integrations and generate automated, real-time reports because, according to payments industry expert Digital River, "nearly every tax authority will have some form of real-time reporting requirements and will likely have a way to plug into your financial system and collect information on a real-time basis" within a few years. Accounting software systems are improving their business intelligence features to keep up with demand as accounting departments make better use of analytics to make decisions.
- Accounting software features that increase transparency
Although it is more of a trend in the accounting sector as a whole, this will eventually have an impact on software systems. Software developers will need to develop new strategies to enable accountants to quickly and easily produce trustworthy, transparent reports as accounting professionals and regulatory bodies place more focus on accountability and transparency. Therefore, complete audit trails will appear more frequently.
- AI-powered solutions
A number of accounting software trends could be improved by artificial intelligence, allowing for better business intelligence and more sophisticated automation. For example, an AI-enabled algorithm could identify criteria that categorizes specific charges or carry out a sequence of operations after receiving an invoice. By figuring out how much an employee owes in taxes and payroll depending on their income, where they live, and the tax credits they qualify for, AI solutions can also make these processes simpler.
- More opportunities for personalization
Personalized technology is spreading throughout businesses, from consumer apps to sales and marketing strategies. However, as accounting professionals take on more strategic roles, they need more specialized capability that goes beyond "out of the box" solutions. Many accounting software packages have been slower to accept customization. Examples include the need to manage multi-entity reporting for numerous locations or establish workflows for multi-step spending approvals.