Accountancy trends to watch in 2024
The landscape of accounting has been very fluid in the last 20 or so years. Best practices have changed drastically, and there are often new financial priorities for accountants and the businesses they support on a frequent basis. In 2024, there promises to be many significant trends in the field of accountancy that will be significant for businesses of all types and sizes. Continue reading to find out what the Jan McDermott Chartered Accountants team has chosen as their trends to watch in 2024.
Why look out for accountancy trends
As the owner of a small or medium sized business, it may seem like accounting is a separate discipline that you don’t need to pay attention to. Not so. Qualified chartered accountants not only perform statutory duties, they also provide advice for streamlining business activities and achieving favourable outcomes. As such, the trends emerging at the forefront of the accounting industry often contain useful tips for financial management.
Monitoring accounting trends also gives you an idea of what will be possible and the services soon to be available to businesses. This is perfect if you’re aiming to scale up your business operations in the coming year. New accounting practices and technologies are designed to either make accountant’s jobs easier, increase the quality of their services, or both. Chartered Accountants are bound by a strict Code of Ethics to ensure the duties they perform are for the betterment of society, so you can trust any developments in the industry will help improve how your accounts are managed.
Notable accounting industry trends in 2024
As a chartered accountants, our team is required to regularly refresh their knowledge and apply it to the current industry landscape. As a result, we always have a number of informed predictions for what the coming year holds for accountancy. For 2024, the trends we’ve identified are the following.
As is the case in many workplaces since the Covid-19 pandemic, accounting firms are continuing to embrace solutions delivered by a combination of in-person and remote specialists. This has led to a trend towards increasingly comprehensive cloud-based accounting solutions to support the workforce. Accounting software and data storage hosted on the cloud also allows firms to work more easily with companies that are embracing cloud-based infrastructure as well. At Jan McDermott Chartered Accountants, we’ve been ready for this trend for a number of years. Nowhere is more apparent than in our provision of a virtual fd service. This gives clients access to ongoing financial monitoring and advice.
It’s becoming more common for accounting firms to have open channels with their clients where sensitive information can be shared easily. This allows outsourced accountancy services to more seamlessly understand and benefit client businesses. However, dedicated information sharing systems may be created to facilitate this while also protecting businesses from potential cyber attacks. Alongside this, accounting firms could be required to conduct additional employee training to recognise and repel cyber attacks.
Of course, we couldn’t talk about upcoming trends without mentioning artificial intelligence. The industry has already become increasingly digital over the last decade, with the government’s Making Tax Digital legislation being just one example. In accounting, we expect to see AI powered systems introduced to take care of some of the more monotonous tasks that accountants have to do. This includes the likes of data entry, record keeping, and information gathering for forms. The latter of which is already possible through proper Xero Implementation and integration. In accounting terms, this means a potential AI focus on accounts payable.
As the global economy continues to show signs of uncertainty, the ability of accountants to conduct data forecasting is only set to become more important. This skill involves forecasting and budgeting based off cash flow, earnings, and consumption in the context of the economic climate. We expect 2024 to produce a greater demand for these accountancy services to help businesses navigate uncertain times.
Tax legislation is some of the most regularly changed, and so accountants need to be stay informed as to the coming changes to tax policy for the year. What’s more is that tax regulations aren’t changed on a regular basis. While there are bound to be updates at the budgets, the main challenge often comes in being prepared for new tax rules to be introduced throughout the year.
Changes to tax policy will always affect different people in different ways. For 2024, the Basis Period reform will come into effect, impacting companies that commence from April or that have certain dates where they draw up annual accounts. There are then VAT refunds available this year for those who claim under the DIY housebuilders scheme. The list could go on. The point is that tax services are likely to become more diverse as accountants expand their knowledge on regulation changes.
Wirral-based chartered accountants
Accountancy is so much more than just managing a business’s finances and giving recommendations. Jan McDermott Chartered Accountants offer a range of services, each of which are designed to offer targeted support for businesses. For instance, we offer specialist support for company incorporation if that’s a financial decision you’re going to be making. We follow the current and upcoming trends in the industry so we can always offer the best possible level of service to our clients. We prefer to have a more personal relationship with the businesses we work with, so don’t hesitate to contact us by simply calling the number on our website or filling out the email form.