Preparing For Changes In Accounting Over The Next Decade
If you are a freelancer, private contractor, or small business owner it would probably benefit you and your commercial enterprise to monitor recent changes in the accounting profession. The main question is, just where is accounting headed? There’s no doubt that the future of the industry is intricately interwoven with advances in modern technology. In addition, constantly changing tax laws and tariffs at the international level, as well as corporate disclosure regulations, have all become an integral part of the art of modern accounting.
As the relationship of the global economy becomes smaller, and multinational corporations flourish, the accounting profession needs to develop more international expertise to remain relevant. As a result of this changing business environment, the demand for accountants in the future will rise, along with salaries to match. Indeed, some projections show the need for accounting professionals including book keepers, first year staff accountants, and experienced certified public accountants (CPA’s) growing faster than other occupations.
Freshly minted accounting professionals will face a rising demand for their financial skills for three reasons:
- Baby boomers are retiring at a rapid rate, leaving job gaps in accounting corporations and departments. These firms are now scrambling to fill their ranks.
- International regulations/requirements are transforming global accounting, calling for accountants to make necessary changes to remain in compliance.
- There’s a shortage of experienced accountants, particularly with technical skills and compliance and regulatory backgrounds.
In addition, multinational corporations have divisions and investments overseas and trade on stock exchanges all over the world. Some companies are headquartered in other countries, and there is pressure to conform to common global standards like the IFRS (International Financial Reporting Standards). All these changes contribute to increased opportunities for accountants with a comprehensive understanding of the global situation and core competencies including: cultures, customs, business practices, language skills, and a knowledge of different tax systems.
Over the next decade computers, smart phones, and robots will become increasingly crucial in the world of global accounting to serve multinational clients and handle international customer service calls. Many traditional booking tasks in accounting are already processed by software. Moreover, a small accounting company doesn’t have to be a huge corporate conglomerate to operate in more than one country. With the increase of trade and commerce on the internet, even small companies can maintain a multinational presence.
Advances in communications technology provide accountants with new methods and tools to record and analyze statistics while on the move, which saves time and helps clients gain a competitive edge. Clients, for their part, will have better access to their accountants because of “cloud” computing. Another benefit is that accountants now have real-time access to client operations, which increases their ability to identify and stop potential financial problems before they start. Computer software will also automate more labor-intensive tasks in the future.
Although computers will take over much of the technical aspects of accounting in the next few years, the experience and insights of professional accountants will continue to make them valuable business partners by helping companies increase profitability. The accountants of the future will continue to adapt to changes as they arise and provide a “big picture” view of the world business community. There are also a number of functions that accountants will continue to offer on the person-to-person side of the business format. These include:
- Interpreting accounting rules and deciding how they apply to financial circumstances
- Teaching workshops to show entrepreneurs how to take control of their finances
- Offering strategic advice on investments in the world markets
- Guiding new small business owners through the start-up process
- Assisting clients to establish goals with roadmaps to reach them
- Advising managers on financial trends and underlying pitfalls
If you’re thinking of hiring a “forward-looking” accounting firm that welcomes the challenges of the future in a global context, contact Accounting Pro. We use only the best (state-of-the-art) computer software and are connected to the cloud and international websites. Accounting Pro is currently assisting its small business, free-lance, and contractor clients to grow, using links to business networks in Ireland, the U.K., and the U.S. Join us!
Accounting Pro is Ireland’s premier contractor accounting service. We are here to help, the busy contractor and company, with all your accounting and payroll needs. We are both an umbrella company and umbrella corporation and we can create your limited company. We are experts in contractor pensions, contractor health insurance, illness and sick benefit for the self employed and contractor expenses. To learn more about what we do please review https://www.accounting-pro.ie/ and contact us by email: firstname.lastname@example.org or phone us 01 592 1802. For the UK see Accounting-Pro UK. “Preparing For Changes In Accounting Over The Next Decade” is an article written by Accounting-Pro Ireland for the benefit of everyone. Feel free to share it but please give attribution on a CC BY-SA license.