How Bookkeeping and Accounting Firms are Adapting to the Changing Business Landscape

Going back in time 12 months ago. 2021 bookkeeping offers a hopeful prospect of business returning and normalcy. With the government ending support for the pandemic and assuming vaccinations will continue to fight Covid-19.

In fact, much of this year has been a continuation of 2020. This made it more difficult with a no-deal Brexit, supply chain issues, cash flow challenges, rising costs, and staff shortages.

As the year draws to a close, there is a growing expectation with bookkeeping. Many of these temporary adaptations will be integrated into long-term business operations. This has led to a change in the face of many businesses and a pivot of services to survive.

POST-BREXIT

Despite these unprecedented setbacks, 2021 inspires optimism. The growing demand for the industry’s unique and solution-oriented consulting services has encouraged further growth.

Accountants have thrived, embracing increasingly complex changes in legislation and bookkeeping helping businesses survive and thrive during difficult times.

An exciting bookkeeping development is strengthening international relationships as overseas accountants learn about UAE best practice, UAE companies and accountants for the first time. Establish international offices or partnerships.

Clearly, the UAE’s departure from the EU has created the need and opportunity needed to practice beyond its borders.

DIGITAL TECHNOLOGY

Digital transformation has continued as the industry seeks to continue to embrace digital transformation and seize the opportunities presented by emerging technologies. Just a few years ago, some people predicted that new technologies were the beginning of the end of the industry, but more and more companies understand how to leverage the potential of digital tools and see how the technology will change. How to support, rather than replace or force accountants.

This is especially true of technologies such as cloud-based data management, process automation, and advanced analytics, which only add value. For example, automation improves efficiency, allowing agents to focus on strategic tasks that require creativity and collaboration.

This digital shift is not only leading to more and more services online but also to knowledge sharing through conferences, board meetings, and local meetups. More and more people want smaller, more manageable tips and training, reflecting the growing need for up-to-date, factual advice.

LAW

As expected, 2021 will be a year of consultations and legislative changes. The Institute of Financial Accountants (IFA) responded to 11 government consultations, ranging from economic crime and fraud to the role and effectiveness of Company House, the role and effectiveness of HMRC, and simplifying the system. The tax system, reform base stage, and timely payment.

IFA has also challenged the government on the assumption that professional indemnity insurance will in any way raise the bar for unqualified accountants.

At the same time, the new law also takes effect, so accountants have to deal with the following:

Implement digital tax changes, IR35, post-Brexit trade changes and sanctions, and VAT refund charges.

Money laundering and fraud

One of the areas where IFA has been consulted is emerging threats to the sector, with money laundering amounting to hundreds of billions of pounds a year.

According to the National Crime Agency (NCA), the strategies of criminals are constantly evolving, with the National Money Laundering and Terrorism Financing Risk Assessment (NRA) warning that the risk that suppliers of Accounting Firms Services In Dubai that can be used to facilitate money laundering is considered very high.

The pandemic has only exacerbated the growing problem of fraud, and it shows no signs of slowing down through 2021, nor has the efforts of scammers to find new ways of working, The Furlough fraud is an example of an ongoing risk factor.

The pandemic has led to an increase in service delivery through remote methods such as cloud accounting platforms, potentially putting these operations at greater risk. There is also the growing threat posed by China’s shadow banking, with IFA calling on accountants to regularly review the risk assessments of their clients and the company as a whole.

Climate change

As the door to 2021 closes, and 2022 opens, one key thing now on everyone’s agenda is tackling climate change, as businesses focus more on the impact of climate change. Them towards society and the environment, and the accounting profession faces new requirements to fulfill its role. This also presents another opportunity for the sector, as accountants can be tailored to help small and medium-sized businesses perform complex calculations and determine climate impacts on climate change. Their business activities.

WHAT IS THE 2020 SUMMARY WORD FOR YOU?

Of course, in addition to “pandemic,” I am thinking of the word “adaptation.”

For years, we’ve discussed preparing for disruption, and 2020 has certainly disrupted us all. Some have adapted, and others have reacted. There are differences in these approaches, and they impact the future readiness of a person, an organization, and even an entire industry.

For example,

Some tax and accounting professionals have become concerned about the advancement of technology. They fear that artificial intelligence, robotic process automation (RPA), and blockchain will automate them. According to McKinsey Digital, the global pandemic has accelerated our technology adoption by five years in just two months, and technologies like RPA are expected to have near-global adoption by 2023.

This means that RPA will soon become something we should all interact with. In the tax and accounting industries, this means that RPA can automate rule-based processes, including many accounting processes, such as accounts payable. However, these technologies must first be properly “trained” to be valuable tools for the accounting team.

The American Institute of Certified Public Accountants (AICPA) and the National Association of State Boards of Accountants (NASBA) worked together to tailor the certification requirements for Certified Public Accountants (CPA) to meet the changing skills and competencies needed in the future for the anxious accounting profession. As a result, from January 2024, technology will be one of the four core knowledge areas of CPA’s business.

Newly certifies CPAS

Recently certified CPAs will be taught and learned approximately innovation issues to superior secure the interface of the open, their organizations, and their clients. Managers recognized the requirement for a group with bookkeeping and innovation abilities and talked about whether to enlist a tech or a bookkeeper. In the near future, fortunately, CPA will be paid for both. Experienced accounting professionals who are up against technology will now have to compete with CPAs who are more adept at the essential tools that impact the processes they audit and execute. Given this, how accounting professionals continue to ignore technology is still relevant, especially as technology becomes so pervasive in our lives that we almost don’t even know we’re using it. It? This is where these professionals must adapt and refrain from reacting.

If your mindset is that you’re waiting for things to return to normal and reverse course out of the chaos in 2020, you’re reacting. You’re not adapting. And reacting puts you on the defensive, constantly fighting for opportunities. Instead, see how experts in any industry are excelling this year. They follow hard and soft trends and quickly adjust their strategies.

 As an experienced accountant, trends you need to adapt to include:

• Advanced technology increasingly penetrates the daily work of accountants.
• Employers looking for accounting staff are more likely to hire outside accounting professionals, and newly certified CPAs will have technology at their core.
• Customers value your intellect more than compliance work. (Think of the pressing questions you were asked this year. Are they focused on compliance, or are they looking for guidance?)

This creates a huge opportunity for skilled and experienced accountants to succeed as trusted advisors and not to be trivialized, provided they explore the possibilities and take advantage. of complexity.

Jeffrey Rogers, a principal of the radical futures tech group, briefly explains the opportunity.

“The competitive advantage nowadays lies not within the scale of generation, but in learning how to scale,” says Rogers. “Those who can learn speediest and handle complex, flexible challenges will win.” 

Indeed, there are ways to be aware of and informed about technology to stay competitive. For example, you can develop a two-way mentoring relationship with people inside (and outside) your organization who are more tech-savvy. Pass your wisdom on to them and have them advise you on emerging technologies or tools currently available to you. You can even establish this type of relationship with customers. Find communities of forward-thinking professionals, such as digital CPA from CPA.com, the technology arm of AICPA, to stay on top of current discussions, even if you still need more time to get ready. For that level of talk about technology.

Part of preparing for the future is also awareness and anticipation. Pay attention to technological advancements in the niche areas you focus on. For example, the agriculture industry is currently using the Internet of Things to track livestock (inventory) throughout its supply chain. Tap into your curiosity and start wondering how these innovations will impact the way you report and collect data.

FURTHERMORE

Nowadays, continual learning is the portion of being bookkeeping proficient, and we are continually extending the regions where bookkeeping experts can center. And it’s fundamental to keep in mind this since positions within the assessment and bookkeeping callings will proceed to come beneath weight as innovation proceeds to advance, but those who do not may discover their openings very restricted.

However, adaptation industry experts will define how technology and the post-pandemic new normal will present them with the opportunity to deliver more value to their organizations and customers.