2023 and Beyond: 5 Trends That Will Reshape Accounting and Finance

Although the core of accounting and finance will always be numbers and accountants as its gatekeepers, new trends are shifting how we perceive the industry. Here’s a look at the top five trends to expect from accounting and finance in 2023 and beyond.

1. Technology as Tool for Talent Acquisition and Retention

In such a volatile jobs market, employers increasingly have to be more shrewd in their worker acquisition and retention strategy. Indeed 82.4% of hiring managers in public companies faced challenges retaining finance and accounting employees.

Technology can become a crucial part of alleviating this issue. For instance, you can use emerging HR tools to decide whether a vacancy is better filled by a permanent or contingent worker, per the prevailing economic conditions.

2. Outsourcing Accounting Function

When operating a startup or small business, you often have to handle multiple tasks, some of which you lack expertise in. Mistakes inevitably happen, especially in highly technical tasks such as accounting or filing taxes.

Unsurprisingly, the finance and accounting outsourcing market is blossoming, estimated at $43 billion in 2022. These firms take on the tedious accounting, finance, and tax filing tasks, allowing you to concentrate on the business’s core activities.

3. Accounting Automation Powered by AI and Machine Learning

AI and machine learning has impacted most industries; accounting and finance are no exception.

Machine learning is instrumental in automating repetitive tasks, freeing valuable human resources to tackle higher-value tasks.

“If you’re looking at some of the more repetitive bookkeeping or process-driven tasks, those are more likely to be subject to automation than the higher value tasks.”

Richard Anning, head of ICAEW’s IT Faculty

AI can tackle even more complex tasks like completing Excel spreadsheets formulas, and contracts analysis. It is excellent for capturing crucial info such as renewal options, amounts paid, and payment deadlines.

Industry insiders are targeting a zero-day close as early as 2025, which will mean real-time reconciliation of financial statements. That eliminates the need for manual journal entries, improved billing accuracy, and cash flow automation.

4. Cloud-Based Accounting

The impact of cloud-based accounting cannot be overemphasized. 67% of accountants agree cloud-based accounting solutions improve service offerings and client interactions.

Hosting the accounting function on the cloud means you can access it anytime, anywhere. Cloud-based accounting allows for sharing, editing, collaboration, and tracking sales, inventory, and expenses.

5. Accounting as a Value-Creation Partner

Accounting is proving to be more than just a numbers-only profession. Organizational heads are increasingly leveraging accounting for data-driven decision-making.

You can use accounting principles to spot and rectify inefficiencies, improve performance, set value-based pricing,analyze investment opportunities, and evaluate strategic, operational decisions.