5 Accounting Technology Trends of 2018 You Should Know

Time is flying by.

We are already moving towards the warmer months of the year, the tax season is in full swing, and accounting professionals across the country are spending an overwhelming amount of hours behind the computer screen.

It’s the usual.

But what’s even more interesting is the pace at which technology is evolving. Fifteen years ago, could you even imagine connecting with clients across the globe from the comfort of your home?

The evolution of technology has impacted all industries, and the accounting domain is no exception. It is almost impossible to think about what the industry will be like in another 15 years. Below are five accounting technology trends that will definitely be part of the change that are set to conquer the industry.

1) Security

Security is and will always remain a big point of discussion in the world of accounting.  Data breaches, which cost the average firm $3 million, occur daily and need to be looked at as a serious threat. (2017 Ponemon Institute Cost of Data Breach Study)

Also read: Security breach a major concern in the accounting industry

2) Analytics 

The list of accounting technology trends of 2018 would be incomplete without involving data analytics. Data is everywhere and it plays a key role in all professions, including yours. But the thing is it is becoming increasingly difficult to organize and analyze all data sets.

 

3) Social Selling

Social media is being heavily used as a networking and marketing tool but the social landscape is now getting an upgrade. For instance, LinkedIn has introduced features around lead search and sales conversions to assist its premium users in networking with prospects.  Facebook Messenger bots are already being used for client communication in both B2B and B2C industries. Social media is becoming multi-faceted – and it is not just seen as a customer engagement tool anymore but a customer conversion medium.

Also read: Five simple rules of marketing for a CPA firm

4) The Cloud

Yes, cloud storage will continue to grow A 2016 Wells Fargo survey states bank cheques are still being widely used by at least 90% of small businesses in the US; only 30% of small to mid-size businesses make payments via a mobile POS, such as PayPal.

What such businesses don’t know is there are three major benefits of using the cloud (especially cloud payment) services:

• It reduces system maintenance and administration cost of the organization.
• It lets multiple users edit data and view real-time information anytime, anywhere.
• It provides a backup service that reduces the likelihood to lose important data.

Now is the time to upgrade.

Also read: 5 cloud accounting myths busted

5) Applications

According to a 2017 health report, most accountants either end up working 87 hours a week or gaining 20 pounds because of all the stress synonymous with the tax season. Now fitness and time management applications will help CPAs and accountants maintain a better work-life balance and also present real-time data about their health and schedule in simple formats.

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Accounting technology has always made a positive difference in the lives of professionals and with 2018’s developments, it is safe to conclude that times are changing and it is exciting.

This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a tax preparer, professional tax advisor, or lawyer.
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