Accounting Challenges in the Modern Era

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The past decade has seen significant amounts of change in the accounting arena. Accounting has slowly become a sector that is entangled with finance, marketing and sales. Dozens of new software utilities are now becoming industry standard in the big accounting firms and the industry is becoming standardized on a global scale. Those new to the accounting industry, or attempting to keep up with change, are required to keep on top of these new developments.

Out With the Old, In With the New

ImageBoth the public and private sector has been drifting away from traditional accounting platforms over the latter half of the last decade. Instead, SaaS and cloud-based accounting systems are becoming increasingly more prevalent. SaaS accounting programs allow for better integration with the sales and administrative teams, global connectivity, increased security and the leverage of advanced technology. Leading accounting software providers, such as QuickBooks, have been increasing their product offerings and working to integrate them with customer relationship management software, enterprise resource planning software and marketing and business intelligence suites.

Keeping Costs Down and Profits Up

Accountants today need to be extraordinarily efficient in all of their dealings to keep their costs down. Accounting has become a global industry, with many services being outsourced to other parts of the world. More than ever, accountants today need to ensure that their services are cost-effective to remain competitive within the market. Many small to moderately sized firms have needed to increase their productivity through the adoption of new procedures, new training methods and new software systems. An accounting company today needs to take advantage of every opportunity they have to lower costs and keep their profits up, and many companies are finding that they need to maintain a tremendously high volume of work to remain profitable.

Security is Still the Biggest Risk

There have been many highly publicized breaches in accounting and financial data in recent years. Information becomes more computerized every year, and many accounting firms have completely paperless offices. Security becomes a larger risk with outdated systems and improper employee training. Companies may be able to avoid security risks by investing in SaaS software packages that come with regularly updated security protocols and training seminars. Those that are concerned with their security may also want to create specific protocols for their employees, such as procedures regarding the use of mobile devices for business purposes.

With companies becoming more reliant on their accountants day by day, accountants need to learn how to best utilize a variety of skills within the industry. The modern accountant needs to be extremely technologically savvy, aware of the accounting industry on a global scale and able to integrate their data into actionable information regarding sales, marketing and overall corporate efficiency. Today’s accounting positions are extremely sophisticated but also very competitive. Those that are not on the top of their game and do not take advantage of the new technology available to them may find themselves quickly being outpaced.

You’re reading Journal Entries, a publication all about accounting by FloQast.  FloQast makes software to empower accounting departments to collaborate and manage the financial close process.