Key trends in the accounting industry right now, and in the future

As the accounting industry continues to evolve in an era of digital transformation, it’s crucial that we look into what is impacting practices today and tomorrow. From advancements in technology to shifts in work culture and regulatory changes, these trends are not only reshaping the way accountants work but  redefining their role as trusted advisors in an increasingly complex financial world.

AI (Artificial Intelligence) will not replace accountants; it will continue to replace or improve some of the work that isn’t necessary.

AI serves as a valuable ally for accountants, automating routine tasks and data processing, allowing professionals to concentrate on higher-level analysis, strategy, and client interactions. It complements their expertise, enhancing efficiency and insight while reducing the burden of repetitive tasks.

MTD (Making Tax Digital) is still coming. And getting clients ready now will put you ahead of the game

MTD is still on the horizon, and proactively preparing clients for its implementation gives accountants a significant advantage. We can put our heads in the stand or make it tomorrow’s problem but early readiness ensures a smooth transition, minimises the potential disruptions, and strengthens client relationships. It demonstrates foresight and commitment to compliance, positioning you as a trusted advisor in a changing regulatory landscape.

Accountants won’t return to the office full-time; hybrid working is here to stay (and if not they will leave to find it)

This shift is driven by a growing demand for flexibility and work-life balance. Firms embracing this change are likely to retain top talent, as those unwilling to adapt may seek opportunities elsewhere to align with their preferred work arrangements. Hybrid working is a game-changer in the accounting industry and those firms that fight the trend will risk losing new and future talent because of it.

Cybersecurity threats will only get smarter and be more dangerous to you and your clients

Accountants and their clients must proactively adapt, bolstering their digital defences and staying informed about emerging threats. Safeguarding financial integrity requires constant vigilance and a commitment to staying one step ahead in this high-stakes game of cybersecurity.

Becoming a HUMAN FIRM is key

Have you read Will Farnell’s second book, ‘The Human Firm’? If not, order it now as its essential reading for all practice owners. In short Will discusses the significant transformation occurring within the profession and how moving away from primarily impersonal compliance-based procedures towards a deeper emphasis is fostering genuine human connections both with clients AND your teams. This shift echoes the origins of accountancy, where the foundation of our work rested on people and relationships, shaping our definition of success.

M&A will continue to be a key feature in this space

Mergers and acquisitions (M&A) will remain a cornerstone of the accounting industry as it has been over the past 3-5 years.   Firms will seek strategic partnerships and acquisitions to expand their service offerings, geographic reach, and client base. As the industry evolves and competition intensifies, M&A will be pivotal for growth, innovation, and staying competitive in a dynamic market. But this will also open up opportunities for smaller boutique firms and experienced talent to re-enter the market as they look for other opportunities.

The message here: stay informed, stay adaptive, and stay ahead in the ever-evolving world of accounting. Embrace these trends to shape your success in the present and future of the industry.

By Phil Hobden, sales leader in the accounting technology space, regular contributor for Elite Business online.

The post Key trends in the accounting industry right now, and in the future appeared first on Accounting Insight News.