The accounting industry has always been a challenging sector. Finance is the backbone of every business entity; thus, the challenges of the accounting industry have been mammoth to deal with. Notably, the prevailing social and economic conditions have a significant impact on the accounting industry.
In 2020, the entire world has been facing some of the biggest challenges of the century. In this, accounting firms need to prepare themselves for the upcoming business challenges that the twisted economy is going through their way.
CapActix has been providing the outsourcing accounting services for small business and big business for ages now. Thus, our professionals have a keen grasp of the prevailing market conditions and know how to deal with them. There are plenty of new challenges that accounting companies have to be prepared for in the upcoming days.
Accounting Challenges of 2020
This year has brought some good and bad news for the accounting business industry, which resulted in a few new challenges for the accounting professionals, such as –
1. The Need for Online Accounting Services
Existing norms of social distancing and lockdown have thrown the challenge of providing virtual accounting services ahead of the accounting business. Today, accounting businesses have to consult with their clients virtually and allocate their work to team working from the home. The traditional accounting companies who haven’t followed the market trends and digitalized their businesses – are facing the wrath of online accounting services even more.
The Solution – However, the process of virtual accounting services isn’t robust if you fully equip your accounting business with the right virtual technology and train your staff. The online setup will be perfectly fine for accounting firms; they just need to befriend technology and create an effective WFH plan to maintain their employees’ efficiency.
2. The Intervention of Automation and AI
Accounting operations are already automated to some extent, but with the wave of AI and virtual reality technologies, prominent accounting functions such as collecting transactions and compelling bills into financial statements have been performed by a machine. By implementing a robotic process in accounting, operations can save up 25,000 hours of work and even improve efficiency. For companies, this might be good news, but it has also put accounting professionals jobs in danger.
The Solution – First of all, robots aren’t going to take over your job; they are just going to take over your tedious work such as payroll, invoices, etc. Moreover, human intelligence is always required to monitor artificial intelligence. You need always to remember that accounting automation is introduced to ease out your work and save your precious time. It is here to perform repetitive tasks so you can use your human intelligence to prepare strategic business plans.
3. Tackle with Cybersecurity
With advanced online accounting services, the challenge of protecting the accounting information online has become a significant problem. The accounting information like credit card credentials, bank account details, and other e-wallets passwords is the favorite target of hackers nowadays. Thus, when your accounting data is full of your clients’ confidential accounting information, it becomes a real issue for accounting businesses to safeguard their data banks.
The Solution – To protect the clients accounting information, virtual accounting services abide to follow these precautionary steps –
- Keep your accounting and security software updated.
- Give limited access to authorized employees only.
- Remove data that you no longer required, such as financial information of a client with whom you no longer work.
- Use cloud storage servers to backup all your vital accounting data.
4. Diversified Accounting Skills
With the virtual accounting services setup, the traditional rule-based accounting skills are not anymore sufficient. Today, it is becoming a challenge for accounting firms to find competent employees with technical and accounting knowledge. Having diversified accounting staff that can handle all the vivid accounting tools and software while sticking to the financial rules is very hard.
The Solution – Become as familiar with the advanced features—like forecasting and analytics—offered by your accounting software, so you’re better equipped to interpret better results. Moreover, it would be best if you kept your staff updated with the new technologies by conducting seminars and workshops from time to time. It is the responsibility of an accounting firm to motivate its employees to expand their skills and adopt new technologies.
5. Advanced Marketing Strategies
With the increasing accounting industry competition, it is a challenge to market and sells your services. Today, when every other day, a new accounting firm with innovative ideas and approach is entering into the market, in this, you can’t gain new clients with your traditional marketing strategies. You have to revamp your business marketing strategies to grow in the future.
The Solution – When you are taking your business online, you can’t stick with the traditional marketing strategies. You have to make a new digital marketing strategy to grow your business. It is concluded that by introducing specialized services and adopting innovative digital marketing trends, you can easily notch up your marketing strategies.
6. Alignment with Globalisation
Today, business organizations aren’t limited by geographical locations. With online accounting tools, accounting businesses have been fully globalized. It is predicted by the Association of Chartered Certified Accountants (ACCA) that globalization is a double-edged sword for accountants. Now accountants are expected to accommodate different accounting norms and rules prevailing around the globe. When Indian accountants are working remotely for US firms, they have to understand both regions’ accounting methodologies.
The Solution – This might be a problem for accountants to develop different skills as per global trends, but it’s not impossible. If you hire accountants who can speak multiple languages and are fluent in English, knows how to deal with different cultures, and have the zeal to adopt new work culture, you can easily step up with the global trends and expand your business across the oceans.
Challenges Help in Sweetening your Victory
The prevailing market trends might be throwing numerous challenges ahead of accounting businesses, but for innovative and efficient accounting professionals – no problem is hard. If you keep calm and address accounting challenges smartly, you can enjoy the sweet fruit of victory. Challenges aren’t hard – we just make them hard. Moreover, accounting firms have numerous resources at their disposal nowadays, like outsourcing services, remote hiring, and so on.
Thus, if you have more significant challenges today, then you gigantic solutions in the form of CapActix also. So, you can easily overcome your accounting challenges by contacting CapActix team on email – [email protected] or can call on +201-778-0509.