As a CFO or controller, you probably aren’t getting questions from your stakeholders like “What’s trending in the world of finance these days?” But just because they may not explicitly ask, they expect you to be up on the latest developments in the finance and accounting ecosystem.
Staying apprised of the latest trends isn’t about keeping up with what’s popular; it’s about giving your organization an edge in 2024. With that in mind, let’s take a look at the top 12 accounting trends poised to shape the new year.
1. Increased Adoption of AI and Machine Learning
Artificial intelligence (AI) and machine learning (ML) are no longer just buzzwords in accounting. In 2024, they will become integral tools, driving efficiency and accuracy. AI and ML can change how you process and interpret financial data, from automating routine tasks to providing predictive analytics for better financial decision-making.
2. The Rise of Blockchain in Accounting
For years, blockchain technology has been synonymous with cryptocurrencies. Regardless of how you view crypto, blockchain has the potential to revolutionize how businesses document transactions and preserve records.
It offers better security, transparency, and efficiency than any other digital recordkeeping solution and is something you should explore to boost the trustworthiness of financial reports.
3. Cloud Computing Becomes the Norm
Cloud computing has become the backbone of modern accounting systems. Its flexibility, scalability, and cost-effectiveness make it an ideal choice for your business, regardless of size. Going full-cloud allows you to access data from anywhere and in real-time, ensuring you have up-to-the-minute insights.
4. Focus on Cybersecurity and Data Privacy
Cybersecurity and data privacy have been center stage for the last few years. As a finance professional, you’ve got to invest in robust security measures to protect sensitive information from cyber threats and data breaches. Failing to do so could erode trust in your brand and lead to hefty penalties from regulators.
5. Shift Toward Sustainable Accounting
Sustainable accounting, or “green accounting,” has gained momentum. Companies are increasingly recognizing the importance of incorporating environmental and social factors into their financial reporting.
By following suit, you can meet investor and consumer demand for sustainable business practices and position your organization as a responsible business.
6. Personalized and Predictive Financial Services
Today’s consumers don’t want one-size-fits-all financial advice. They desire personalized services that speak to their unique needs and goals. By leveraging AI and data analytics, you can offer customized advice and predictions tailored to the specific needs of each client.
7. The Growing Importance of Soft Skills
Having an affinity for crunching numbers is no longer enough to keep stakeholders and investors happy. Soft skills like communication, problem-solving, and emotional intelligence have become crucial in today’s finance world.
While you undoubtedly possess some of these skills already, focus on sharpening them and upskilling your finance team.
8. Regulatory Changes and Compliance
At times, it can feel like regulators are constantly moving the goalpost. As soon as you think you’ve achieved compliance, a new regulation forces you to retool your policies and workflows. Therefore, you must stay up to date on the latest regulations and routinely review your compliance strategy to ensure it is current.
9. Expansion of Accounting Roles
The roles and responsibilities of accounting professionals are expanding. CFOs and controllers are increasingly involved in strategic planning, data analysis, and risk management.
If your organization has not already brought you into the fold on these processes, it likely will soon. Proactively contribute to strategic planning to demonstrate both your versatility and your desire to see the business succeed.
10. Emphasis on Continuous Learning and Adaptation
Continuous learning is a key theme in 2024. With AI and ML accelerating the pace of change in the finance world, you’ll need to stay on your toes. This means upskilling and reskilling your team in emerging areas like data analytics, blockchain, and sustainable finance.
Make sure you are investing in yourself, too, as you’ll need to evolve to meet the changing needs of the organization.
11. Integration of Interdepartmental Data
By breaking down silos between departments, you can gain a more holistic view of the organization’s financial health. In turn, you’ll empower the C-suite to engage in informed decision-making and set the stage for a profitable 2024.
12. Automated Compliance and Reporting
Through automation, you can reduce the burden on your team, get more done, and decrease the likelihood of data entry errors. Cutting back on redundant data entry work also allows your finance team to focus on strategic activities.
Don’t Chase Every Trend — Use a Nuanced Approach
Admittedly, you don’t need to jump on every finance bandwagon that pops up in 2024. However, you do need to familiarize yourself with the developments outlined above and strategically pursue select trends to support your organization’s growth goals. The world of finance is constantly changing, and you need to evolve with it.
