Do you know any accounting and bookkeeping trends that never existed before the new millennium?
In the past two decades, accounting and bookkeeping has significantly transformed the business world in Singapore thanks to the internet and its resulting technologies. Business owners have tapped into rare opportunities that have unveiled futuristic ways of managing their books, operations and inventory.
The coming years are undoubtedly going to involve even more changes, but how can you prepare for such uncertainty?
In this article, we provide you with emerging accounting and bookkeeping trends that you need to be on the lookout for, and how you can become accustomed to them in a cost-effective, scalable, and time-efficient manner.
1. Artificial Intelligence
Undoubtedly, AI has reshaped the entire corporate world in Singapore and is here to stay. Leading accounting companies in the city-state have already switched to AI technology to automate and reorganise their financial books. This shows that AI is a time-efficient system that will inevitably reshape accounting and bookkeeping in the coming years, as the days of manual data entry and paper-based financial books are quickly disappearing into the horizon of redundancy.
As organizations strive to digitize their accounting and bookkeeping process using AI, don’t be left behind. Jump on the AI bandwagon and reap distinct benefits, such as:
- Sustainable and eco-friendly accounting
- Transparency in reporting financial information
- Well-timed identification of security threats
- Effortless categorization of transactions.
- One-touch reconciliation of accounts
- Elimination of hidden data entry errors.
2. Blockchain Technology
Blockchain is an innovative technology renowned for high traceability, transparency, confidentiality, irreversibility, accuracy, and timely delivery. Due to its direct relationship with ledgers, many accountants and bookkeepers in Singapore are gradually tapping into its capabilities to maintain various ledger accounts that contain financial information.
Blockchain also leverages the use of smart contracts to securely track the history of trusteeship and journey of various company assets in real-time. Not only is the technology less vulnerable to data manipulation and fraud, but it also it uses condensed mathematical data to summarize transactions in a block and consistently verify big data sets quickly and securely.
3. Forensic Accounting
Simply put, forensic accounting is a specialty practice that generally involves investigating financial misconduct in companies. It stands out as one the most recent accounting trends used by private auditing firms and law enforcement agencies. However, accounting firms are also partnering with them to prevent, detect, and investigate fraud and money laundering.
A forensic accountant has the skills and capabilities to:
- Evaluate financial books to expose inconsistencies.
- Design and implement fraud risk management programs.
- Design prevention and detection strategies of commercial crimes.
- Provide litigation support by presenting and examining evidence in court.
- Interview suspects and witnesses involved in financial fraud.
- Computing revenue losses arising from contract breaches.
As such, forensic accounting goes a long way in protecting businesses from financial scams, which could cost your company billions of dollars.
4. Cloud-based Accounting
If you are not using cloud accounting software, you are being left behind. Simply put, this popular accounting trend helps you maintain your books in an online database that remains encrypted, and is only accessible to authorised individuals. You only need one data file to manage your accounts. This eliminates the need to have different departments to carry out different accounting services.
Some of the key benefits of cloud accounting software include:
- Automatic reconciliation of financial data between your bank account and cloud server.
- Remote review of current financial status.
- Multi-user access in real-time.
- Detailed dashboards rigged with easy-to-understand financial reports.
- Effortless sharing and collaboration.
The above benefits are just a tip of the iceberg. Once you start using a cloud accounting system, the possibilities are endless.
5. Remote Accounting
The rapid rise of remote work intensified during and after the COVID-19 pandemic, and this means that in the coming years, brick and mortar accounting firms are going to be almost non-existence. If you have a PC, a good internet connection, and proficiency in using accounting software, remote accounting is for you!
Accounting firms are currently hiring more potential accountants and bookkeepers to work in a remote work setting. This not only widens their search and hiring criteria, but is also effective in adapting to the after-effects of the pandemic. Remote accounting is complemented with cloud-based accounting software, which allows distant teams to collaborate in critical financial processes.
6. Big Data
Big data are large and complex data sets that traditional data-processing software cannot process or break down. Big data can be broken down using expanded assessment techniques that can provide accounting firms with valuable insights for proactively identifying issues in real-time. The hard evidence and facts from big data can help you make informed decisions instead of giving emphasis to assumptions and guesswork about customers, employees, and vendors.
Forecasts on accounting trends reveal that approximately 63% of organizations in the world want to implement big data in the next few years. Certified Public Accountant are currently capitalising on the use of big data to convert the most valuable data into actionable insights. These insights help in analysing processes, forecasting problems, and taking positive control of their systems.
7. Outsourced Accounting and Bookkeeping
Are you fed up of spending your free time reconciling your financial books? It could be the right time to hire a professional accounting company in Singapore. Outsourcing accounting functions has become one of the most popular trends lately because many businesses that try it have reported to experience deep satisfaction in their outsourced accounting value that comes with it.
Outsourcing your accounting and bookkeeping functions allows you to focus more on the core functions of your business, and as a result, increasing your profitability. Furthermore, it can save you from incurring high costs of payroll, taxation, and insurance benefits. However, if you select the wrong outsourced service provider, you risk causing irreversible damage to your company.
- AI technology helps accounts to automate and reorganise financial books.
- Blockchain technology is less vulnerable to data manipulation and fraud
- Forensic accounting goes a long way in protecting businesses from financial scams
- Cloud-based computing maintains your books in an online database that remains encrypted
- Remote accounting is complemented with cloud-based accounting software to facilitate collaboration in critical financial processes.
- Big data provides valuable insights for proactively identifying issues in real-time.
- Outsourcing accounting functions allow you to focus on the core functions of your business
Looking for a dedicated accounting firm for your start-up or SME in Singapore? Choose Tianlong Services. Our expert accountants can provide you with the best service possible, while minimizing your accounting problems and maximizing your profits.