Bill Gates said, “Investing in tomorrow’s technology today is more critical than ever.” These words continue to resonate with every generation in the business world for a myriad of reasons.
Today, we are surrounded by technology and it is hard to imagine living without it. Businesses of all shapes and sizes use technology to streamline their operations and become more efficient to generate revenue.
We are seeing a lot of companies invest in enterprise technology to overcome the challenges they are facing across different departments.
Today, we will explore the different accounting software trends businesses should be aware of in 2022.
With so much going on in the world of technology, it is hard to stay updated with every small development. As we have set our foot into a new financial year, it is a good time to explore these accounting software trends.
Without wasting any more time, let’s dive straight in.
Accounting software trends in 2022
1. Say hello to cloud-based accounting solutions
The “agile software revolution” kick-started a few years ago and we are seeing a lot of businesses adopt these solutions. The significant rise in the number of remote workers across the globe is one of the key reasons why businesses are prioritizing digital transformation.
Businesses are gradually moving from on-premise solutions to using solutions that are on the cloud. The challenges that come with on-premise solutions including expensive hardware, dedicated IT, hosting, and more are driving away companies toward convenient software-as-a-service (SaaS) solutions.
In addition, SaaS vendors also release updates and new functionalities more often than their on-premise counterparts.
Cloud-based accounting software will therefore gain considerable traction in 2022 and this trend is likely to continue in the upcoming years.
You can read more about the difference between SaaS and on-premise solutions to determine which model works best for your organization.
2. We will see a lot of automation in accounting
One of the most exciting accounting software trends is the shift toward automation in accounting.
Accounting automation tools offer a great degree of efficiency by replacing mundane and time-consuming tasks that hinder productivity.
With automation slowly becoming a gold standard in the software industry, automation will also be prevalent in accounting tools.
With automation in the mix, accountants have more time to focus on gathering valuable financial data. Although accounting automation can handle multiple forms, the ultimate goal is to reduce manual data entry, restrict the number of steps in workflows, and ensure that the entire accounting process is a hands-off experience.
Right from approving an invoice to entering sales data and everything in between, automation in accounting equips you to work smarter.
3. Integration with third-party applications
Automating manual tasks is one way to enhance efficiency. Another way to improve efficiency is by increasing data connectivity in your company.
This is one of the key reasons why a lot of accounting software vendors are rolling out more system integrations to ensure that there is not a gap between your accounting tool and other solutions.
For instance, connecting your financial data to your CRM will enable your sales team to improve their sales process and generate additional revenue.
Accounting software that provides better connectivity with other third-party applications makes it easier to facilitate such connections.
4. Real-time reporting features
Another trend that is catching up in the accounting software space is the flexibility of reporting functions.
As businesses expand globally, the complexities of global tax make it even more essential for businesses to access their data in real-time. Experts suggest that tax authorities will have some type of real-time reporting needs and may need to find a way to plug in your financial system and collect data on a real-time basis.
This means that accounting tools will have to evolve to offer these integrations and also produce automated real-time reports.
Turning to analytics will help companies make informed decisions.
5. Features to boost transparency
This trend can be observed across the accounting industry, but we are only talking about the influence on software systems.
Today, regulatory bodies and accountants are increasingly emphasizing accountability and transparency. This is why software vendors are required to find innovative ways to make it swift and convenient for accountants to generate transparent, accurate, and reliable reports.
It also indicates that full audit trails will now become very common.
6. Entry of AI in accounting
Artificial intelligence (AI) has spread its wings across a myriad of industries, and enterprise tech is no exception. While AI-powered CRM and email marketing tools have become very popular, we are seeing an influx of AI-driven accounting tools as well.
AI algorithms have the ability to spot criteria which club expenses into different categories.
Besides, AI accounting platforms can organize taxes and payroll by calculating how much tax an employee has to pay and more.
Personalized technology has garnered significant adoption across sales and marketing teams in different industries. Although accounting tools have lagged behind in terms of adopting a personalized approach, they are gradually getting there.
Today, accountants are seeking innovative and out-of-the-box features that offer more than a typical accounting tool.
There is a growing need to build customized workflows for multi-step expense approval or manage multi-entity reporting across multiple locations.
Accounting tools that provide a high degree of personalization features are likely to become popular in 2022 and beyond.
Staying on top of accounting software trends can become challenging. This is where ToolsMetric can help you.
We have researched and compiled a few accounting software trends for you.
There is no doubt that as technology evolves, we will be greeted with new accounting software trends in the future.
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