1
EMERGING TRENDS IN ACCOUNTING
Introduction
With the emphasis on innovation, it is crucial for accountants to understand emerging trends in the
accounting business to prepare adequately for the potential disruption that lies ahead. With the advent of
new technologies and innovations around the world, the global economic environment continues to evolve
and thrive. As a result, change becomes the new constant. Organizations that continue to modify their
business operations and business model must also be aware of the current accounting trends as change
becomes a prerequisite for growth.
Will study some of the following emerging trends in accounting.
1. Digital Transformation in Accounting
2. Big Data Analytics in Accounting
3. Cloud Computing in Accounting
4. Accounting with Drones
5. Forensic Accounting.
6. Accounting for Planet
7. Creative Accounting
8. Outsourced Accounting
9. Predictive Accounting.
1. DIGITAL TRANSFORMATION
Meaning
"Digital transformation refers to anything from IT modernization (for example, cloud computing), to digital
optimization, to the invention of new digital business models. “In general, it refers to the use of digital
technology to materially evolve or create new business processes.
Goals of Digital Transformation
Digital transformation enables an organization to better serve its principal stakeholders, customers,
employees, partners and shareholders. The integration of computer-based digital technologies in business
operations helps organizations do the following:
1. Increase in speed to market with new products and services;
2. Increase in employee productivity;
3. Increase in responsiveness to customer requests;
4. Gain more insight into individual customers to better anticipate and personalize products and services;
and
5. Improve customer service, especially in providing more intuitive and more engaging customer
experiences.
1 EMERGING TRENDS IN ACCOUNTING_________________________@!!!!!!!!!!!!!!!!!!!!!!
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Benefits of Digital Transformation
The following are the benefits of Digital Transformation:
1. Improved Efficiency
One of the biggest benefits of Digital Transformation is the dramatic improvement in efficiency. The way
the employees communicate from department to department, the continuous flow of data across the
organization, the seamless transition from phase to phase over the lifetime of the customer-all of these
benefits add up to a more efficient business process that can save time, money, and resources.
2. Increased transparency.
Due to digital transformation another aspect to consider is transparency across teams. For example, both the
Customer Success Team and the Accounting team would be able to see which clients are behind on a
payment and could address the problem more quickly rather than simply waiting on accounting to loop
everyone in.
3. Cost Savings
A lot of organizations spend a good amount of money and time simply maintaining old, legacy systems and
products. Undergoing a digital transformation could not only save money upfront, but it will save both time
and money once it goes live through the integration of more efficient processes and quicker problem
identification.
4. Revenue Growth
By minimizing costs, it's easier to grow revenue. Maximizing opportunities through the recognition of flaws
within current business processes is key to driving a company forward. By improving transparency in
different aspects of the business, employees and management can improve their best practices and drive
revenue through pattern recognition, trend evaluation, and capitalization of data-driven opportunity.
Digital transformation of Accounting
Digital accounting refers to the certain representation and transfer of financial information in an electronic
format. Instead of using papers, all accounting transactions are conducted in an electronic environment. The
digital transformation involves in the integration of digital technologies and business processes. If an
entrepreneur is looking for business growth, he must replace the manual accounting procedures with digital
accounting. It's time to find an accounting solution that works best for the business.
2. BIG DATA ANALYTICS IN ACCOUNTING
Meaning
Big data is the collection of data sets that are so large or complex they cannot be analysed by traditional
databases or tools, such as spreadsheets. The data that might be captured by a car, time-driven, the speed at
each time, GPS location, dashboard settings (radio and air), the pressure applied to gas and brake pedals, tire
pressure, whether the driver is talking, and the list goes on and on. If this data about the car is collected, it
2 EMERGING TRENDS IN ACCOUNTING_________________________@!!!!!!!!!!!!!!!!!!!!!!
EMERGING TRENDS IN ACCOUNTING
Introduction
With the emphasis on innovation, it is crucial for accountants to understand emerging trends in the
accounting business to prepare adequately for the potential disruption that lies ahead. With the advent of
new technologies and innovations around the world, the global economic environment continues to evolve
and thrive. As a result, change becomes the new constant. Organizations that continue to modify their
business operations and business model must also be aware of the current accounting trends as change
becomes a prerequisite for growth.
Will study some of the following emerging trends in accounting.
1. Digital Transformation in Accounting
2. Big Data Analytics in Accounting
3. Cloud Computing in Accounting
4. Accounting with Drones
5. Forensic Accounting.
6. Accounting for Planet
7. Creative Accounting
8. Outsourced Accounting
9. Predictive Accounting.
1. DIGITAL TRANSFORMATION
Meaning
"Digital transformation refers to anything from IT modernization (for example, cloud computing), to digital
optimization, to the invention of new digital business models. “In general, it refers to the use of digital
technology to materially evolve or create new business processes.
Goals of Digital Transformation
Digital transformation enables an organization to better serve its principal stakeholders, customers,
employees, partners and shareholders. The integration of computer-based digital technologies in business
operations helps organizations do the following:
1. Increase in speed to market with new products and services;
2. Increase in employee productivity;
3. Increase in responsiveness to customer requests;
4. Gain more insight into individual customers to better anticipate and personalize products and services;
and
5. Improve customer service, especially in providing more intuitive and more engaging customer
experiences.
1 EMERGING TRENDS IN ACCOUNTING_________________________@!!!!!!!!!!!!!!!!!!!!!!
, 2
Benefits of Digital Transformation
The following are the benefits of Digital Transformation:
1. Improved Efficiency
One of the biggest benefits of Digital Transformation is the dramatic improvement in efficiency. The way
the employees communicate from department to department, the continuous flow of data across the
organization, the seamless transition from phase to phase over the lifetime of the customer-all of these
benefits add up to a more efficient business process that can save time, money, and resources.
2. Increased transparency.
Due to digital transformation another aspect to consider is transparency across teams. For example, both the
Customer Success Team and the Accounting team would be able to see which clients are behind on a
payment and could address the problem more quickly rather than simply waiting on accounting to loop
everyone in.
3. Cost Savings
A lot of organizations spend a good amount of money and time simply maintaining old, legacy systems and
products. Undergoing a digital transformation could not only save money upfront, but it will save both time
and money once it goes live through the integration of more efficient processes and quicker problem
identification.
4. Revenue Growth
By minimizing costs, it's easier to grow revenue. Maximizing opportunities through the recognition of flaws
within current business processes is key to driving a company forward. By improving transparency in
different aspects of the business, employees and management can improve their best practices and drive
revenue through pattern recognition, trend evaluation, and capitalization of data-driven opportunity.
Digital transformation of Accounting
Digital accounting refers to the certain representation and transfer of financial information in an electronic
format. Instead of using papers, all accounting transactions are conducted in an electronic environment. The
digital transformation involves in the integration of digital technologies and business processes. If an
entrepreneur is looking for business growth, he must replace the manual accounting procedures with digital
accounting. It's time to find an accounting solution that works best for the business.
2. BIG DATA ANALYTICS IN ACCOUNTING
Meaning
Big data is the collection of data sets that are so large or complex they cannot be analysed by traditional
databases or tools, such as spreadsheets. The data that might be captured by a car, time-driven, the speed at
each time, GPS location, dashboard settings (radio and air), the pressure applied to gas and brake pedals, tire
pressure, whether the driver is talking, and the list goes on and on. If this data about the car is collected, it
2 EMERGING TRENDS IN ACCOUNTING_________________________@!!!!!!!!!!!!!!!!!!!!!!
