What 4 Digital Accounting Trends Will Affect CPA Firms in 2020?

Infiniwiz provides IT managed services to accounting firms and other businesses offering financial services. Whether you need guidance on choosing the right accounting tools or keeping up with technology that can transform your business, contact us today.  
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4 Surprising Digital Accounting Trends in 2020

Infiniwiz provides IT managed services to accounting firms and other businesses offering financial services. Whether you need guidance on choosing the right accounting tools or keeping up with technology that can transform your business, contact us today.  

Developing technologies are impacting accounting firms and financial services in a big way in 2020. Change is essential for growth, and CPA firms need to stay in tune with the latest trends that can reshape their business model.

Digital Trends Accounting 2020

Here are four trends that will impact the industry in 2020.

Is it Safe for Accounting Firms to Switch to Cloud-Based Software?

Cloud computing already has a prominent place in accounting systems. Adopting this technology establishes your firm as a leader in the market. Soon, this technology will become commonplace. So, financial services firms that don’t move to the cloud can find themselves left behind in the market as well. The following software applications have cloud-computing capability:

  • QuickBooks Online
  • FreshBooks
  • Xero
  • Kashoo

Cloud technology enables authorized subscribers to resolve issues and access data in a collaborative online environment. Its cost per user model lets you save money by limiting subscriptions to staff members who need it. In 2020, nearly 80% of small businesses will do business in the cloud, according to Accounting Age.

What Impact Will Automation Have on the Financial Services Industry?

Automation has become easier than ever thanks to digital transformation. Manual accounting practices are a thing of the past. Automation technologies increase employee productivity by carrying out mundane tasks. This enables accounting and finance professionals to spend more time verifying and analyzing results.

A Vanguard study reveals that employees spend 10 to 20% of their work hours on repetitive tasks. Automating these tasks frees employees for more meaningful work and helps keep headcount at a productive level.

How Has the Role of an Accountant Changed?

Over a decade ago, accountants had to be mathematics experts and understand all the laws and regulations impacting their financial duties. While expertise in these matters is still important, a lot of this knowledge comes built into smart tools for accounting firms and financial services businesses. Technology has changed many aspects of the traditional role of an accountant. Now, communication skills are key. Better tools allow financial professionals to deliver more precise, secure, and reliable results. Encrypted emails and private cloud networks make it safe and secure to transmit reports and statements to individual clients and internal customers at large organizations.

How Do Social Media Platforms Interact with Accounting Apps?

Today’s accounting firms and financial services companies are using social media for several purposes. LinkedIn, for example, facilitates connections with clients, colleagues and potential staff. Social media also lets finance professionals stay up to date with trends in the industry that could impact their work. Additionally, several apps assist with communication, time management, data presentation and data conversion tasks. This functionality is a boon during month-end activities or tax season. It allows professionals to stay in touch with progress on accounts even if they are traveling or working remotely.

Infiniwiz provides IT managed services to accounting firms and other businesses offering financial services. Whether you need guidance on choosing the right accounting tools or keeping up with technology that can transform your business, contact us today.