Accounting Trends for 2023
Updated: Jun 5, 2023
In today’s business world, technology continues to reshape and redefine how we run our daily lives. In addition to ever-evolving technology, in the last 3 years we have witnessed unprecedented disruptions such as the Covid-19 pandemic, wars, soaring real estate costs, inflation, gas prices fluctuation, and one we did not think we would see and is the most recent one……the increase in the cost of eggs.
Successful business owners recognize the importance of evolving as a business, and the need to remain current with trends; these include accounting trends. These are some of the accounting trends that are likely to impact small business owners in 2023:
The increasing use of technology and in accounting is making it easier for small business owners to manage their finances and stay on top of their financial reporting. Cloud-based accounting software, for example, is becoming increasingly popular, as it provides small businesses with a secure and cost-effective way to store and access their financial information from anywhere. The fact is, you don't need to purchase expensive online accounting software or to spend hours plowing through complicated reports. Sage online accounting software not only simplifies and automates basic accounting tasks, it also provides real-time business insights—anytime, anywhere.
Automation is also becoming increasingly prevalent in accounting, with tools like automated invoicing and expense tracking becoming more widely used as it helps small businesses save time and reduce the risk of errors, freeing up their time to focus on more strategic tasks.
Although complex and sometimes overwhelming, Artificial Intelligence (AI) is also being used more in accounting, with tools like machine learning and natural language processing being used to automate tasks and provide insights into financial data. AI can help small businesses make better decisions, identify patterns and trends, and improve their financial performance.
Lastly, blockchain technology has the potential to significantly impact small businesses by improving security, reducing costs, increasing efficiency, and enhancing transparency. However, the adoption of blockchain in small businesses is still in its early stages, and further development and education is needed to fully realize its potential.
Compliance with accounting standards and regulations is becoming more important, with changes related to the tax code and regulations being implemented at a rapid pace. Small businesses will need to stay informed about the latest changes and ensure they are following the correct procedures to avoid penalties and fines. For example, growing focus on ESG (Environmental, Social, and Governance) issues is leading to increased attention on ESG reporting, with businesses being held accountable for their social and environmental impact. A new rule is expected to go in effect early in 2023 that would incorporate ESG concepts into required climate disclosures for businesses.
With the growing threat of cyber-attacks and data breaches, cybersecurity is a top concern for businesses of all sizes in 2023. This includes the need for strong internal controls, the use of encryption and other security technologies, and ongoing training for employees to ensure that sensitive financial data is protected.
The trend towards remote work is likely to continue, and small business owners will need to be able to manage their finances and perform accounting tasks in a virtual environment. This includes using digital tools to communicate and collaborate with their accountant and other employees.
Ensure that your team is open-minded, can quickly adopt new technology, and is willing to embrace new trends. Stay up-to-date with technology and future innovations. At CPA by Choice, we know your business requires your attention and we can handle all your accounting needs, we use automation and AI in our processes and ensure that your business can take advantage of these technological advances so that you can streamline the business, increase productivity, improve accuracy, and reduce your costs. Have questions? Feel free to call us or send us a message.