5 Fundamental Changes Accounting Industry Will Foresee After COVID-19
COVID-19 pandemic has been changing the fundamental rules of society. From social distancing to no handshake norms have already changed the basic manners of living and greeting the people.
Just like all the business domains, the accounting industry is also under the radar of COVID-19. The lockdown practice around the globe has already slowed down primary and secondary sectors of the economy that results in to slow down of accounting and financial businesses. But, this is just the tip of the giant iceberg because real changes in the accounting businesses can be seen after COVID-19.
The accounting industry has always been one of the essential and important sectors of the business world. Thus, any change in the business world effect in a considerable impact on the accounting industry. So, if you are part of the accounting industry in any way, then you need to be prepared for the upcoming changes.
Disruptive Changes Introduced by COVID-19 in the Accounting Industry
CapActix has always been a foresighted accounting outsourcing company. We keep a tab on the market trends and anticipate the upcoming trends so that we can keep our clients and employees fully informed and prepared. After analyzing the current COVID-19 situation and its impact on the user’s behavior, there are plenty of different changes in the accounting industry that can be observed.
Change 1. Focus on Online Accounting Services
This pandemic has affected the traditional way of conducting daily operations and increased the demand for online services. From online studies to online grocery shopping, everyone is today going online to practice social distancing. Thus, in the future, online accounting services are going to be the main change in the accounting industry.
The traditional methods of hiring accounting services where clients physically meet up with the accounting firms and understand their operations before hiring them – will be no longer practiced. Now, physical meetings will take place of the Zoom conferences or FaceTime video calls. Clients have to search for the accounting services online and allot work also virtually. The virtual accounting services or outsourced bookkeeping services have been already practiced, but after COVID-19 the operational area of these services is going to be grander than before.
Change 2. Work From Home Culture
This crisis has also encouraged companies to set up a pipeline of work from home so that the employees can safely work from the confined environment of their homes without going out. This practice is going to be part of the business world for the long haul now. Thus, outsourcing for accounting firms will even increase. Right now, numerous accounting companies are using outsourcing accounting services, but when they don’t have in house staff, then they can even going to increase the operations through outsourcing services.
Currently, outsourcing for accounting firms has been limited to some basic services only such as outsourced bookkeeping services, payroll services, inventory management, and so on. But, post-COVID-19, all other accounting services will be outsourced by the companies, such as risk management, Virtual CFO, business analysis, operational analysis, auditing, etc. all the major accounting-related professional services could be outsourced by the accounting firms.
Change 3. The need for Remote Workers
The majority of the countries are today under the full lockdown or partial lockdown. In some areas, the pandemic has caused the vast damage and these areas aren’t going to back on the track very soon. So, social distancing or lockdown is going to be practiced for a long period in those buffer areas. Thus, the best practice that sensitive coronavirus zone accounting companies are going to do is hiring remote accounting workers.
The remote accounting services will be going to play a major role in the accounting industry afterward or during coronavirus. The dedicated and healthy accounting professionals are going to be in the demand for COVID-19 affected zones. And, remote accounting teams can help them in managing their vast workload that has been delayed due to the lockdown or illness of their employees. Remote accounting practices are already a significant part of the accounting firms, but in the following days, it is going to even more huge.
Change 4. More Technology Structured Accounting
The accounting industry is already based on the technology. The number of technology streams is used in the day to day accounting companies’ operations. From basic bookkeeping to the advanced tax reports, everything in the modern accounting world revolves around the technology. But, with the increase in the online accounting services and remote accounting services, the industry is going to adopt even more technologies shortly.
Accounting software is already empowered with cloud computing, big data analysis, artificial intelligence, and other fintech services. But, after the pandemic, the involvement of other technologies like telecommunications, and other relevant technologies will be increasing. So, that won’t be wrong to say that accounting practices could be vastly automated in the future.
Change 5. Prominent Mobile Accounting
Mobile versions of almost all the accounting software and electronic fund transfer apps are already available. But, the mobile version isn’t used much because accountants usually prefer to work from their desktop computers. However, now as the workers are working remotely so they might want compact versions of their favorite accounting apps that they can be easily operated from their smartphones. Thus, after the coronavirus crisis, we will see a change in the mobile app development services in the accounting field because accountants want more light and compact accounting software that can be used anywhere and anytime for reporting purposes.
A wave of Digitalisation after COVID-19
We still have to see the impact on the accounting industry after the coronavirus crisis, but one thing that can be concluded right now is that coronavirus has pushed the accounting industry more towards digitalization. So, accounting operations are going to be empowered by digital trends in the future. But, to know the real changes, we have to wait for the COVID-19 crisis to pass on soon.
At CapActix, we are ready to face the upcoming changes in the accounting industry so if you want to be part of a futuristic accounting firm, then contact us at email – [email protected]. or can call on following numbers;
USA: +1 (201) 778-0509
East Africa: +256 705 255 673
India: +91 95744 40217