In almost every field of business, emerging trends impact defining what the future looks like. The accounting industry, in particular, has evolved considerably over the past few decades. From manual accounting on physical paper to software on local systems to cloud computing, a lot has changed for accountants.
While you cannot forecast any further evolution with certainty, accounting trends can help set the right direction and expectation. The year 2023 could lead to a new way for accounting professionals to resolve various bottlenecks with advanced technology. In addition, some trends are poised to pave their way into their work life. Knowing what the future may behold can help you plan how to leverage growth opportunities if you are a part of the accounting industry.
Without further ado, let us take you through the expected accounting trends in 2023.
Cybersecurity’s Importance to Rise Further for Accountants
Since the advent of the Internet age, cybersecurity has become a never-ending battle for almost every type of business, and accounting is no different. Unfortunately, the number of attempted cyberattacks shows no signs of slowing down, with around 2,200 occurring daily (Source). Besides this, it has also been found that approximately 95% of all breaches occur because of human error.
Since accounting involves multiple human hands to assess, process, and verify business data, the risk of human error is not zero. The yearly spending on cybersecurity is estimated to be around $188 billion in 2023 (Source). This also represents the scale at which cybercrime is growing across the globe.
Multifactor authentication to Evolve Further for Enhanced Security
While accounting firms have invested in various data security measures, they are expected to adopt a higher generation of cybersecurity tools and practices in 2023, one of which is MFA or Multifactor Authentication. If you haven’t yet invested in this data security measure, it’s time to do so right away without any further delay. MFA is also expected to evolve as a data protection method in the coming months, with reduced reliance on passwords only. It will include multiple authentication methods, such as biometric identification, fingerprints, or facial recognition, as the second step to authenticate authorized access to data.
While small-scale accounting firms might not be highly worried about secure MFA, it is a trend to watch for the time ahead. You can also benefit from MFA and other security measures with the help of a cloud solution provider offering all-inclusive hosting plans.
ESG Movement to Provide More Opportunities
Environmental, Social, and Governance (ESG) represents a movement among organizations to present their business practices as beneficial to the planet and its people. This three-letter movement has taken place on the global stage to become a key metric for determining the long-term viability of a business. A positive ESG score represents a quantitative analysis of the risk level faced by companies with issues like worker safety, energy efficiency, etc.
Since ESG is a complex concept and involves evolving standards and frameworks, a business cannot give itself an ESG score. Instead, they require a third-party assessment and audit to verify their claims. This is where accounting firms can come forward to leverage the opportunity to sign off on audits. This year, ESG audits are expected to accelerate business opportunities for accounting professionals.
Evolution of Blockchain Toward the Accounting Industry
Blockchain is often associated with cryptocurrency, but there’s more to this technology than only Bitcoin. As a next-gen technology, blockchain can potentially increase the speed of payments in the supply chain.
Consider the example of agricultural blockchain. When an individual harvests fresh, organic vegetables, he hands them to a trucker to take them to the farm. With blockchain in place, the one who harvested the vegetables will get paid when the trucker reaches to pick it up, and then the trucker is paid when he reaches the distributor. All the stakeholders involved get paid as soon as their part of the job is done.
In terms of the accounting industry, the application of blockchain in the form of smart contracts can make it easier for you to receive payments from your clients after completing the work assigned. With time, you can witness smart contracts being developed for accounting firms.
Grow More With Cloud Accounting in 2023
While various accounting trends may come and go, cloud computing is meant to stay a reliable and safe way to access accounting applications. So whether you are looking for a secure cloud infrastructure to host applications, benefit from remote accessibility, or hire managed IT service experts, Verito Technologies has a service for you.
Connect with us here for more information about our cloud hosting plans.