Accounting Industry Trends: Automation, Cybersecurity, and More

‘Enhancements’ come into the accounting industry every day, and many of them vanish just as quickly as they appear — but not all trends are merely trendy. That’s why it’s important to maintain a dynamic perspective: on the one hand, you want to take a critical distance from short-lived fads; on the other hand, you don’t want to sit on the sidelines and miss out on the next big thing. 

We’ve always worked to change the way people think about accounting, and that’s why we keep our eye on what’s happening across the industry. Here are some trends that are already transforming how we work, where we work and whom we work for.  These aren’t just flashes in the proverbial pan. You might just find some fresh perspective on how to think about accounting. 

Accounting Automation and Artificial Intelligence

Developing a toolbox of the right hardware and software helps accounting professionals focus more on providing critical strategic advice — and less on the tedium of data entry. For Jesse Rubenfeld, founder of FinOptimal, maximizing automation allows professionals to streamline workflows and “focus on the strategic, on how to advise management, and ultimately how to help our clients get what they want out of their accounting systems.”

As Tom Wadelton explains, there are two kinds of commonly used AI in the financial industry that can help lighten your team members’ workload: Robotic Process Automation (RPA) eliminates many time-consuming accounting processes, including the review of journal entries, account reconciliation or testing of access control, whereas Application Programming Interfaces (APIs) are protocols that share data between programs, adding functionality to the original programs.

With technological advancements coming fast and furious, we recommend that you dip your toe in as soon as possible; but always keep your eye on one main question: “What problem am I trying to solve with this technology?” If the answer relates to providing excellent client service, you’re probably headed in the right direction.

Cybersecurity

In the current business environment, cybersecurity continues to become an increasingly critical component of operations. As criminals and their schemes become more and more advanced, so must firms’ dedication to maintaining data security best practices around protecting information, companies, and consumers. In short, you have to be as vigilant in protecting your assets from data breaches as thieves are in trying to compromise them: as a financial advisor, you aren’t expected to be a security guru, but keeping your firm up-to-date on firewalls, network security, cybersecurity training and insurance, and more can help protect your most important asset: information.

Environmental, Social, and Governance Reports (ESG)

As the figure of the CPA moves away from excel and into an advisory role, there will be more opportunities than ever in the world of ESG.

In 2024, the UN invited 55 CEOs of major financial institutions to participate in an international project, the result of which was the 2005 study entitled Who Cares Wins. The report’s four overall goals are creating stronger financial markets, contributing to sustainable development, raising the awareness of stakeholders, and improving trust in financial institutions. 

The concept of ESG can still generate polemic, among people who think it is a measure of “good company versus bad company,” so Kai Gray, CEO of Motive ESG, suggests that accounts looking to get involved in ESGs think of it this way: “Certainly, it's discussed from a political perspective, but ESG is a collection of roughly 200 different metrics around environmental, social, and government governance data,” he said. “So we can look these things up and know for a fact that they do things that align with your values.” 

Soft Skills

In a world of facts and figures, this one might surprise you. There’s a lot in this article about technology, processes and procedures — but perhaps the most important factor in doing any kind of business is building relationships. “The CPA profession has been, and will continue to be, relationship driven,” says Dave Hartley, Anders CPA Partner-in-Charge – Advisory. “When we think about what differentiates us from technology, it really comes down to: Humans have relationships with other humans. There's a lot of things that tools can do that can help us, but at the end of the day, it's about that human relationship.”

Remote and Hybrid Work

Soft skills are all the more important to hone if you’re capitalizing on the new, post-pandemic workplace, where you may spend less time in the physical presence of clients and coworkers. Although it’s still a topic of hot debate, remote and hybrid is increasingly popular for accounting positions. That means when it comes to finding clients, the world is your oyster – as long as you’re able to stay on top of the cloud-based accounting technology required to interface with clients across the globe. 

The remote and hybrid workplace can’t just be an afterthought, however. Accounting teams from bookkeepers to CFOs need to work together in sync, especially if you are providing a range of services to a single client. For those companies struggling to make the most of their off-site workforce, Tammy Bjelland, the founder and CEO of workplaceless, which specializes in training for remote work and leadership skills, has some thoughts. “When I hear things like, ‘I need them in the office, because I need to know that they’re being productive,’ it tells me more about their management style than anything,” she says. “It just means to me that they only rely on one input to gauge whether somebody is achieving what they're supposed to: They need to be able to see them in their seat. But you don't know if those people are actually working.” 

To combat this, she recommends removing performance metrics based on physical presence, providing opportunities for asynchronous collaboration, and organizing a suite of tools around your team’s needs and the accounting solutions you provide. To this, we’d add that occasional in-person meetings — for example full team retreats or smaller ‘pod’ gatherings — are absolutely invaluable for maintaining cohesion.

Advisory Services: The Future of Accounting

Which of these trends and enhancements speaks most strongly to you and your accounting firm? Find out more about each and take your advising capabilities to the next level. “So much of the accounting profession has been focused in the past,” Dave Hartley says. “That's one of the major shifts: That’s not what our clients want. Our clients want us to help them make better business decisions so that they can achieve their goals. That's what an advisor is, someone who helps look to the future.”