Predictions for Accounting Profession in 2023

The year 2022 was unlike any other in the history of business, and the accounting sector was no exception.

In the last ten years, the accounting industry has changed in a big way, and this change is getting faster. If we do not change with the times, we run the risk of falling behind in the wake of more flexible and agile companies.

How has this year changed the way things are now?

What can we anticipate going forward when it comes to the accounting profession?

With the beginning of another hectic season, be ready to tune in to your strategic plans for the upcoming years.

The Future of the Accounting Profession- 2023 and beyond

It's also a good opportunity for industry consultants to ruminate on what "might be" in 2023 and beyond, as this will undoubtedly affect those plans. In light of this, we provide our expectations for accounting technology in 2023.

1. Workflow is king

Workflow tools have been one of the key innovations in improving accounting firm production.

We anticipate that firms will look to industry ERP (Enterprise Requirements Planning) solutions to make small inroads into firms, along with increased awareness of the accounting vendor workflow systems, which traditional firms will transition to.

Also, if you think about advanced workflow management, like advisory services and automated compliance workflows, you can give your clients more value and make more money for your accounting business.

With workflow management, you can see every project in your company's workflow management software, including where it is in the process, when it is due, and which projects are almost finished.

2. Audit binders on hold

Despite the major accounting vendors' claims that their engagement binders are prepared to replace established on-premise systems, 2023 will be another year of "wait and see," delaying any significant adoption until 2024.

Large companies said that their biggest concerns for internal audit were the business model changes caused by changes in the risk landscape, the ability to find and keep top talent, macroeconomic factors, and geopolitical uncertainty.

However, only 13–20% of businesses have clear plans for putting a lot of resources toward solving these problems.

In order to make sure that their organizations are prepared for success in 2023, internal audit teams need to be able to recognize and address this type of disconnect.

3. ESG Awareness

With new auditing standards and guidelines being developed to broaden assurance services, this is the year that environmental, social, and governance activities really start to take off.

At first, the largest accounting firms in the US will set the pace, but then smaller, more specialized businesses will start to grow. Due to rising demand from investors and other stakeholders, corporations have up until now largely adopted voluntary ESG-related policies.

But things are about to change.

If it isn't already, the tax must be included in a company's sustainability goals moving ahead given the desire for more reporting and transparency.

As the demand for additional ESG legislation grows, risk and compliance teams may soon find compulsory ESG activities.

They need to be ready and able to abide by the new ESG regulations.

In fact, the BDO poll found the biggest obstacles facing tax executives as they attempt to increase tax transparency reporting is a lack of clarity surrounding reporting requirements (41%) and data collection and analysis (62%).

4. Automated Accounting Tasks

Payroll, audits, tax preparation, and other labor- and time-intensive aspects of accounting are quickly automating completely.

When AI is used to build self-learning systems for accounting tasks, the repetitive and time-consuming tasks will be done by technology, leaving people to do the analytical and management work.

Another example is the use of robotic process automation (RPA) to cut down the processing times for audits and contracts to weeks as opposed to months.

In comparison to their smaller, non-AI rivals, larger companies that integrate RPA and AI have "improved productivity and higher-level offerings," according to Forbes.

5. Outsourcing Bloom

Given that staffing is still a major concern for the majority of accounting firms, we predict a clear acceptance of offshore and onshore services based in the US as the status quo, as well as a bloom in the number of service providers being engaged by companies.

Highly qualified individuals are eager and able to take on typical accounting chores at a fraction of what they would cost domestically in nations with weak currencies.

Fortunately, there are other competitive advantages that can be used besides price.

Because you're not concentrating on lowering prices as much as you can, your practice is better able to build personal relationships with clients. You may also concentrate on raising value as much as you can.

Your practice's capacity to do so will depend on how well you promote it and create its competitive advantage.

Other reasons for outsourced accounting services-

• More than 50% say it helps in cutting costs
• 47% of professionals believe in solving capacity issues while gaining access to talent capital
• 57% find with outsourcing they focus on core functions
• 31% believe it enhances the quality of services
• 17% find that it helps them expand and speed up organizational transformation

6. Alignment with global accounting and its standards

Once upon a time, a select few exporters and multinational corporations dominated the world of business. Nowadays, the location of many firms is no longer an obstacle.

Therefore, according to the ACCA, globalization will provide both possibilities and challenges for accounting and business firms.

Accounting standards will likely change to present a more internationally uniform technique, and accountants will need to be able to cope with rules from many nations.

Accountants will also be needed to handle the various business practices that exist around the world. The profession will need to undergo an internal transformation in order to take full benefit of these good changes, even though they are all beneficial ones.

7. Time-based billing can become history

Today's clients are seeking a value-add. Prior to receiving anything, they want to know what will be supplied and how it will help them. As value takes precedence over time, your clients will be less willing to grant any company a time-based free pass.

Although it is still relatively uncommon in the accounting sector, value-based pricing is widely acknowledged to be the way of the future and to provide benefits for both clients and accountants.

With value-based billing, if your practice is effective, you won't lose money, and if it is ineffective, the customer won't be responsible for paying for the time that was lost.

That entails using the "five Cs" of value to your practice's and your client's mutual benefit.

• Comprehending the worth of the service you offer the client
• Creating value for clients
• Communicating the value of your work
• Convincing clients that what is offered is worth the effort and cost
• Capturing that value through strategic pricing

Hourly pricing causes clients to focus on hours, and as automation rises, fewer hours will be worked and thus invoiced to clients.

Value-based pricing, however, forces them to prioritize value. We'll see that your relationships with your clients play a significant role in how valuable they regard you to be.

8. “Passwordless”- Big NO

Through 2023, accountants will continue to use tried-and-true identity management techniques including complicated 12+ character passwords, MFA (multi-factor authentication), and password wallets, notwithstanding the promotion of passwordless authentication standards by key corporate players.

9. Adaption of Modern Portals

By the end of 2023, the major accounting software suppliers will finally release robust client portals with dashboards and workflow capabilities that truly make it easier to engage with clients. This will be in time for the busy season of 2024.

10. Stricter Cyprocurrecy norms

The entire cryptography system is fraught with risk. One of the biggest digital currency exchanges in the world went under in November, exposing its poor financial management.

This has sparked widespread calls for stricter cryptocurrency restrictions.

The attention it cast on the auditors who signed off on his accounts, has forced small audit companies to reconsider their work for startups in the area. The government might come up with new auditing rules with regard to cryptocurrency.

Discover Your Accounting Future

Here is what the future holds for accounting professionals. As Accounting Today states, “with any evolution, whether Darwinian or technological, those who aren’t willing to adapt risk being left behind.”

Future accounting positions will need committed experts who are willing to develop within the sector. Don’t let yourself be left behind- allow your firm to explore new strategies to cope with new working trends all while growing your business simultaneously.

It’s time and ability to really look at your workflow processes, use of internal technology, and implement measures that make the experience with your client better, while also ensuring internal efficiency.

Book a free strategy call with Ace Global, a global talent provider to find out how outsourced accounting can help your business scale.

A warning has gone out at the start of 2023 – the accounting industry is facing the worst talent shortages in its very long history.

If you aren’t already dealing with the short-staffed, you might. The good news is, there are better solutions if you know where to look.??

Get clued up on how talent and technology in India can help your firm grow.

REGISTER TODAY