Accounting technology continually evolves over time in response to changing regulations, business and market dynamics and technological advancements. From the abacus to the calculator to the computer program, each iteration has driven the field forward and given accountants more tools with which to develop key insights for business growth.

If you’re thinking of becoming an accountant, you should take a look at some of the emerging trends in the accounting industry so that you can develop a sense of what you can expect from this career field. While working through an accounting degree from Grand Canyon University, you’ll have opportunities to reflect on modern accounting practices and how the top trends may affect the profession. 

Given the prominence of digital tools in daily life, it should come as no surprise that many of the emerging trends in accounting revolve around new technological tools. Indeed, many of the skills that accountants need concern technology. For example, accountants are expected to have a strong working knowledge of business intelligence software, tax preparation software, accounting software and data management.^{(See disclaimer 1)}

Some of the top accounting software trends and non-tech trends include the following:

1. Automation in Accounting

Using tools for automation in accounting can help reduce both costs and errors. These tools free up members of the accounting and finance teams. With greater automation, these teams can work on more higher-level, future-forward projects, rather than low-level tasks like manual data entry. 

For example, various apps and software can help small businesses pay and send invoices automatically, with only a little time needed for setup. Other accounting tasks that can potentially be automated with the right tools include the following:

• Bank reconciliations
• Expense tracking, reporting and analysis
• Financial reporting, including financial statements and forecasts
• Payroll, including wage calculations, payroll processing and payroll taxes
• Data entry and capture from receipts and invoices
• Accounts reconciliation and report generation for the month-end close

With this accounting technology trend’s greater prevalence, accounting professionals can focus on developing business insights and communicating those insights to business decision-makers.

2. Cloud-Based and Mobile Accounting Solutions

Many of the automation tools being used in the accounting field are built upon cloud-based platforms. The cloud facilitates scalability while also minimizing the investment in information technology (IT) infrastructure.

Cloud-based solutions have another benefit, as well. They provide more flexible access to accounting data by all members of the team. No matter where the individual team members are located, each can access the same data, provided they have an internet connection.

In addition, cloud-based solutions offer access to real-time data insights. They allow team members to collaborate on the same data at the same time. What’s more, these cloud-based solutions are often available through apps that can be used on mobile devices, further enhancing their accessibility and convenience.

3. Niche Industry Specializations in Accounting

Not every business owner wants to work with a general accounting firm or professional who provides services to all types of businesses. In fact, some small business owners and solopreneurs may be disenchanted by accounting software and sites that have too many options and that seem tailored to big businesses. Instead, they might want to work with accountants who understand not only their larger industry but also their niche.

To accommodate these types of businesses, some accounting professionals may want to specialize in a particular niche industry. Setting up an accounting firm to cater to specific niches may help professionals stand apart from other accountants. Niche areas to consider specializing in can include:

• Real estate
• Software-as-a-service (SaaS) startups
• Medical and dental practices
• Law firms
• Restaurants and other food service businesses
• Construction companies
• Cannabis dispensaries and related operations

It’s important to choose a niche area that you’re interested in, that represents a growth industry and that aligns with your expertise. It’s also worth considering if the niche area is recession-resistant, as this can impact the financial health of your own business.

4. Leveraging Big Data and Analytics

Big data gives accountants insights into their clients’ business needs, objectives and strategies. The more accounting professionals are willing to work with big data analytics, the better they may become at staying on top of trends in the accounting industry and being able to offer clients the best solutions.

Big data analytics allows accounting professionals to collect, clean and process huge amounts of data without the time required to deal with it manually. Instead, accounting professionals can turn to digital business intelligence tools, such as interactive dashboards on analytics platforms, to identify and evaluate business trends.

This data can be turned into forward-looking financial insights that are easy to understand even for non-accounting and non-finance professionals. In turn, this facilitates multidisciplinary decision-making across departments, allowing for collaboration and the alignment of objectives.

Some examples of big data analytics and data forecasting tools include the following:

• Predictive models: For identifying emerging risks before the business is potentially impacted by them, allowing for proactive risk management strategies
• Advanced scenario modeling: To simulate the impact of potential operational decisions before they are made, and to evaluate the effects of possible market changes before they occur, allowing for “what if” strategy development
• Rolling forecasts: To provide highly responsive reporting of financial performance by automatically updating business forecasts as new data becomes available

5. Flexible Online Accounting Education

If you’re an accounting professional who is interested in advancing your career qualifications, you may be excited to know that one of the accounting technology trends is the availability of flexible online education. At Grand Canyon University, for example, you can earn an accounting master’s degree through online classes. (Evening classes are also available.) 

Some accounting professionals may even wish to turn non-degree online education into one of their service offerings. Clients may struggle to learn how to use accounting technology tools. You might decide to create tutorials for your website to help your clients while showcasing your knowledge and skills.

6. Changing Role of Accounting Professionals

As new trends in accounting and finance technology continue to reshape the profession, the role of the accountant is also changing. In the past, accountants primarily focused on entering data, reconciling accounts and preparing tax documents. Now that technology is capable of handling much more of the routine, such as lower-level tasks necessary for business operations and documentation, accounting professionals are finding themselves taking on an increasingly higher-level role.

Businesses turn to accounting professionals for analytical functions. An accountant might focus on cost analysis, pricing strategies for different consumer markets and performance evaluation and management, for example. In short, the work that accountants do helps fuel the data-informed day-to-day decisions that a company makes.

Grand Canyon University’s Colangelo College of Business teaches how to support business growth and drive industries forward using best practices and modern technology. GCU offers a wide variety of degree programs designed for future accounting professionals, such as the Bachelor of Science in Accounting degree, which teaches a broad range of foundational competencies in the field. If you’re interested in furthering your education, consider enrolling in the Master of Science in Accounting with an Emphasis in Tax Compliance and Planning degree, which teaches advanced skills and knowledge centered on tax planning and regulatory compliance.