How Technology Is Reshaping Accounting Departments in 2023
The modern accounting landscape isn’t a battle between competitors—it’s a race against time. Organizations that come out on top proactively adopt accounting technology trends as they come into play. And their evolving approach to technology informs their future hiring strategies.
Looking for some guidance on relevant innovation? Here are three accounting technologies that can help you complete finance tasks in record speed and the must-know effects of technology on the accounting profession.
1. Automated Accounting Technology Increasing Value-Added Work
In the past, data entry was one of the most tedious, groan-worthy parts of accounting. Now, it’s one of the fastest. The adoption of automated accounting tools that check off repetitive tasks in an instant is approaching an early majority. With top accounting software like Xero and FreshBooks—which are part of a growing $20.4 million market—teams can complete data entry in an instant, along with key accounting functions like:
- Bank reconciliation
- Accounts receivable/payable
So, how does this change the hiring landscape? Organizations will need to prioritize new technical and soft skills as this technology grows prevalent. On the technical side, you’ll need to bolster your team with people who can navigate automation tools like they’re riding a bike. Equally as important are adaptable and strategic leaders—team members who can learn software quickly and maximize its value in a world of endless updates and feature launches.
The growth of automation can ease some talent shortage concerns. The accounting field has an aging workforce—25% of all accounting firm partners are over 60 years old; 40% in small firms—and giving the employee experience a modern update can attract more young professionals. However, with the national IT worker shortage still a pressing concern (despite ongoing news of layoffs), internal hiring and upskilling will be essential strategies for keeping up with accounting technology trends in 2023.
2. Blockchain Entering the Auditing Process
The term “blockchain” once only applied to Bitcoin, but your organization doesn’t have to accept crypto to leverage this technology. Blockchain, which acts as a highly accurate and secure ledger of financial transactions, is expected to transform accounting—specifically when it comes to recordkeeping.
Most companies are still in the early stages of adoption, but blockchain can empower accounting departments to maintain and automate unalterable financial records. Translation: Better data, less fraud, and far faster auditing than in the past. In fact, auditing can start to take place continuously, rather than periodically.
That said, blockchain is still a new and elusive tool to most accounting professionals. As 55% of organizations make blockchain a top-five strategic priority, we can expect demand to shift from accounting auditors to blockchain administrators. While the potential of replaced workers may sound alarming, it can actually solve major talent gaps in the field—currently, 95% of auditors agree skilled talent is challenging or extremely challenging to hire.
3. Cloud-Based Accounting Becoming a Standard
“Remote work” is a household term in our modern world, and even accounting teams that work in-office have more flexibility than before. A day out of the office no longer has to mean a day off. This is largely due to a shift toward cloud accounting applications becoming the standard for modern teams. These days, 67% of accountants prefer cloud-based accounting tools—and most use the cloud for project management and communications, too.
Naturally, teams are becoming more and more dispersed. As they do, accounting departments built on traditional infrastructures may need to do major updates on (or complete overhauls of) their systems. To achieve these large-scale projects, organizations may need specialized labor—or, at least, more labor. Temp staffing may be a key solution for getting the talent and short-term resources needed to move to more agile solutions.
Accounting professionals who are experts in compliance may also be crucial for total cloud computing adoption. Reuters reports regulations in finance could drive more remote workers to the office—and accountants are more likely to return to the office than other financial professionals. Hiring experts who can advise on and train for compliance will allow accounting teams to reap the benefits of remote work and agile software in the long run.
Embrace Accounting Technology Trends with the Right Talent
Adopting new technology in accounting is crucial to growth, but you need the right talent to drive your success. As accounting processes become more and more automated, prioritizing candidates with modern technical skills—as well as dynamic mindsets—will be a must. Many accounting departments may also turn to internal hiring and temp staffing solutions to fill in talent gaps as their teams evolve.
Find the talent you need with recruiters at the intersection of accounting and IT. Get connected with Concero today.
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