6 Emerging Trends That Will Reshape Your Bookkeeping In 2024
2024 certainly involves uncertainty and change in the bookkeeping and accounting trends, legislation and policies. It’s no secret that 2024 will be the most challenging year ever. With business owners reshaping their operations and inventory management. The year ahead will undoubtedly involve changes and uncertainty, but how can you prepare? In this article, our experts discuss the emerging bookkeeping trends that will influence - how business owners can adapt towards scalable, cost-effective and time-efficient cloud solutions.
Top bookkeeping trends in 2024
As 2024 goes on, the business continues to change quickly because of new technologies, changing rules, and changing market conditions. Companies that want to improve their operations, make better decisions, and deal with a more complicated financial environment must adapt to these changes.
1. When AI and Technology Made Bookkeeping more efficient - bookkeeping industry trends
Recent developments in Artificial Intelligence have reshaped the corporate world. Accountants in Australia, including business owners, have switched to AI and technology-based mediums. With cloud accounting, business owners are now streamlining and automating their finances to create a time-efficient system. The days of manual data entry are long gone. Organisations are now incorporating digital receipts for an efficient, organised process. Moreover, promoting sustainable accounting means reducing the use of printing paper, an eco-friendly initiative for future generations. The transparency for reporting information to the ATO has significantly increased with the Single Touch Payroll process.
2. More planning and advisory
As accountants, we see how business owners like to do their bookkeeping. Many entrepreneurs take courses or train themselves to look after their bookkeeping needs. No doubt, bookkeeping as a service has become more affordable around us! No matter how inexpensive the pricing is, quality bookkeeping can prevent ATO fines and evaluate financial data promptly.
However, as a business owner, the question is, are you spending 30% of your time in bookkeeping? If the answer is yes, you are certainly not providing value-driven service compared to your potential.
- Madeeha Usman, the chartered accountant at The Kalculators, also known as the Tax Lady says, “It is not manual data entry anymore, but how transparent and time-efficient are you with your bookkeeping needs?”
- Usman says, “The Australian Accounting industry is itself, switching to mediums, where a work-life balance can be created. However, business owners forget that to raise profitability and find new sources of value creation. They must focus more on their business than bookkeeping. Let the experts look after financials while they devote more time to their business”.
Bookkeepers need to upskill their bookkeeping methods by streamlining their process through technology. The bookkeeping profession has now switched more towards advisory and planning. However, individuals, especially business owners, undermine their potential by taking over as a one-man army.
3. Automation
The third trend we'll look at in our 2024 bookkeeping trends guide is automation and artificial intelligence (AI). Think of a kitchen that is very busy at night. Now, picture if half of those hot pots and pans were working on their own at the right time, so the sauce never burned and the pasta never overcooked. In the same way, automation is like the sous-chef who never calls in sick and does the same tasks repeatedly with such ease that it's almost cruel.
But let's include AI. This isn't just any helper; the secret sauce chef knows all of your favourite recipes, can guess what you'll need, and even suggests adding something new to make things more interesting. Regarding numbers, AI is learning the patterns in your business's finances, predicting future trends, and giving you insights like finding gold in a river of data. It's not just about making things easier; it's also about giving you more information that makes your strategy thinking stronger.
4. More attention to data privacy and cybersecurity
For the past few years, cybersecurity and data privacy have been very important. As a finance worker, you need to spend money on strong security to keep private data safe from hackers and data breaches. If you don't, people might not believe your brand as much, and regulators could fine you a lot. Running software in the cloud is a cheap and flexible way to keep data safe online. So accountants can work from home or on the go with less trouble.
Accounting companies should also set up systems that need two forms of identification to make sure that only authorised users can access private data. This is because accountants and clients share a lot of private financial data. Focusing on data security will help businesses protect the most important thing they have on hand for their customers: their financial information.
5. Use of financial software
In this day and age of computers and technology, it's clear that more and more people need good financial tools. Because of this, the market for accounting software for businesses will grow by 6% every year from 2020 to 2024. As the market changes, technology is more important than ever to stay ahead of others. SMEs can look into accounting and finance tools that can help them immediately keep track of their cash flow and spending, billing and invoicing, and processing payroll.
Using accounting software reduces mistakes, making the work more accurate. Advanced software programs let you make financial analysis reports with just one click, which helps you make better decisions. All the data can also be saved up in the cloud, which makes it easier to get it back if you lose it. Most F&A partners use tools to get more done and be more accurate.
6. Tailored financial services
The development of technology has changed the way financial services are provided, focusing on making experiences more personalised to meet each customer's wants. Financial institutions can now offer customised services that meet each customer's specific needs and tastes thanks to advanced analytics, artificial intelligence (AI), and machine learning.
Through data analysis, technology lets businesses learn a lot about how customers act, how they spend their money, and what they like. With this information, financial institutions can make customised financial solutions that meet the exact wants of each customer. For example, banks can suggest personalised investment portfolios based on a person's risk tolerance, amount of income, and financial goals. Similarly, insurance companies can offer personalised policies that meet the needs of specific policyholders.
Personalised financial services also have an effect on customer service, making customers much happier and more loyal. Financial institutions can improve their relationships with customers by giving them customised solutions and experiences. This will lead to higher engagement and retention rates. Personalised services also make the customer trip smoother and more efficient, which builds trust and loyalty.
Add-ons to maximise your Bookkeeping reporting
Xero, as accounting software, is an intuitive tool supporting business owners (with no financial training) in understanding their business better. Some of the most trending Add–ons by Xero have simplified the bookkeeping mediums, such as:
From collecting to storing bills, receipts, bank statements and invoices. All in one single platform! Receipt bank is an essential integration medium with Xero. Fairly simple to use, an individual can send all their invoices to the Receipt Bank inbox. Helping users keep clean records!
Focused explicitly on inventory and shipping management, Veeqo is an excellent tool for converting e-commerce orders into invoices. From syncing purchase and payment orders, it helps automate and streamline profit calculations.
A modern payment processor, supporting organisations to accept online, debit and credit payments. Either via recurring or one-off basis. Stripe is an excellent tool for organisations that supports cloud-based transactions for business owners, to expand their services.
Compliance process made even easier
We cannot undermine the use of technology in terms of compliance either. As an accountant, we understand the value of being completely compliant. However, compliance is indeed a very time-consuming process! And one wrong entry can lead to a whole number of wrongdoings. Many organisations are managing their workflow compliance via digital mediums. Hence with real-time data analysis and workflow management, cloud-based compliance can eliminate errors significantly.
Conclusion
Using technology to provide personalised financial services improves the customer experience, raises the bar for customer service, and leads to new product developments. Financial institutions can build stronger relationships with their customers by using data-driven insights. This can lead to long-term relationships and higher customer satisfaction generally. As we come to the end of this look at next year's finance trends, it's clear that the financial world is changing quickly. Automation and AI, data analytics, future-proofing, customised financial toolkits, and better security are some of the trends we've looked at. Together, they give companies a complete road map for navigating the ever-changing waters of bookkeeping.
Call The Kalculators right away if you're ready to start this journey. There is a bright future ahead for your small business accounting. Let's make it even brighter. If you have the right tools and knowledge, the horizon is yours to master.
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Frequently Asked Questions
Are the accounting solutions leveraging cloud-based technology?
Frequent visits to your bookkeepers have now been replaced via real-time integrated software, where business owners can see the live progress of their finances. As accountants and bookkeepers, we have completely transformed the way we work, via Xero’s accounting software. From viewing or adding notes to the accounts, to reconciling them with your bank statements has led towards accurate invoices and statements.
A recent example would be of our client, who runs a successful health and wellness company. Focused on delivering a seamless service experience. The company owner adapted to the new software like Xero and add – ons such as Expensify. During our analysis, we focus on simplifying the bookkeeping mediums used by the client. For more time to be devoted to customer service. Implementing the cloud-based software Xero has saved hours for the owners. Especially during advanced approval and reimbursements, our client is now more focused on expanding his second outlet in Australia*
*Due to confidentiality purposes, we cannot reveal names and information. However, we want to notify you that the example provided is correct.
What are the advantages of implementing these emerging trends in your bookkeeping practice?
These new trends are beneficial in the following ways:
- Automation and efficiency: AI and ML technologies can automate repetitive bookkeeping tasks, reducing errors and saving time. This will enable bookkeepers to focus on higher-value activities that contribute more to the success of their business.
- Enhanced security: Blockchain offers a decentralised and tamper-proof ledger system, enhancing security and preventing fraud. By adopting blockchain technology, bookkeepers can improve the integrity and confidentiality of financial data.
- Improved decision-making: Access to accurate and timely financial data through data analytics and reporting will enable bookkeepers to gain valuable insights and make more informed business decisions. This will enable them to provide strategic guidance to clients.
- Flexibility and remote work: Embracing remote work and virtual collaboration will enable bookkeepers to work from anywhere, anytime. This flexibility will enhance work-life balance and attract skilled professionals from a wider talent pool.
- Enhanced cybersecurity: Implementing robust security measures will safeguard sensitive financial data from potential threats, ensuring compliance with regulatory requirements and protecting businesses from financial losses and reputational damage.
Are there any challenges or risks associated with implementing these emerging trends?
New trends always come as burdens at first until one becomes knowledgeable. Check out the challenges of these 2024 bookkeeping trends below.
- Training and skill requirements: To fully leverage the capabilities of AI and ML, bookkeepers may require additional training and upskilling. They will also need to adapt to new technologies and manage data effectively.
- Integration and compatibility: Integrating emerging technologies with existing systems and processes can be challenging. Finding a solution that is interoperable and meets the specific needs of your business may require careful evaluation.
- Cybersecurity risks: With the increased reliance on technology, bookkeepers may face heightened cybersecurity risks. Implementing robust security measures, such as encryption, multi-factor authentication, and regular software updates, is crucial for mitigating these risks.
- Data privacy and ethics: Handling sensitive data raises ethical and privacy concerns. Bookkeeping professionals must ensure compliance with data protection regulations and respect the privacy rights of individuals and businesses.
How can bookkeepers stay ahead of these trends and prepare for the future?
Bookkeepers need to always grow in knowledge with these trends in order to be effective in their career. Here are tips bookkeepers can follow to stay updated.
- Continuous learning and training: Bookkeeping professionals should stay updated on emerging trends and technology advancements by attending workshops, conferences, and online courses. This will enable them to adapt to changing circumstances and stay ahead of the competition.
- Implementing cloud-based solutions: Moving bookkeeping processes and data to the cloud will provide greater flexibility, scalability, and access to up-to-date financial information. Embracing cloud-based solutions will enable bookkeepers to leverage the benefits of emerging technologies.
- Building a cybersecurity plan: Creating a cybersecurity plan that includes regular risk assessments, employee education, and incident response procedures will help safeguard sensitive data and protect your business from cyber threats.
- Collaboration and partnerships: Engaging with other professionals, such as accountants and consultants, can help you stay abreast of emerging trends and leverage their expertise. Collaborating with like-minded professionals can also open doors to new career opportunities.
- Seeking professional certifications: Professional certifications, such as Certified Public Accountant (CPA) and Certified Management Accountant (CMA), demonstrate your commitment to continuous learning and expertise in bookkeeping. These certifications can help you gain a competitive edge in the job market.
About the Author / By Kaleem Ulah
