In recent years, technology has shaken up various industries, and now financial experts are using Fintech to streamline operations and improve client relationships. In 2022, 35% of US small and medium-sized businesses considered adopting new financial technologies, or “fintech” for lending and better pricing.
The fintech market has boomed, with publicly traded companies reaching a market capitalization of $550 billion, doubling since 2019. From electronic payments to banking and wealth management, financial sectors are undergoing a digital transformation. Embracing fintech early is necessary, as McKinsey predicts fintech revenues to grow three times faster than traditional banking from 2023 to 2028. Despite initial hesitations, the financial expert who embraces these technologies is thriving, underlining the imperative of staying ahead in a competitive landscape for success in 2024 and beyond.
5 tech trends for you to succeed in 2024
According to Capital Counselor, “Companies that use cloud accounting add 5 times more clients than companies that don’t use these tools.” Certainly, cloud accounting is the future of the accounting industry and providing numerous benefits to CPAs and accounting firms. Many financial professionals now use cloud-based software for various non-core functions, from customer relations to accounting and human resources. Cloud-based accounting is already adopted by 82% of small businesses and 58% of enterprises. Banking and financial institutions should embrace the benefits of the cloud fully because core service infrastructure in areas such as consumer payments, credit scoring, and billings are going to become utilities in the coming years.
Access your financial data anytime, anywhere, securely encrypted and stored on a virtual cloud server. No more drowning in paperwork or waiting for the office computer; with cloud accounting, your business is always at your fingertips. Recent research spills the beans: 67% of accountants prefer this modern way of doing things. Join them, add cloud accounting to your toolkit, simplify collaboration, cut paperwork, speed up payments, and take control of your financial game.
Cash flow forecasting and management
As a financial expert, plan for success in your client’s business by utilizing cash flow projections – a key tool for informed decision-making. Small businesses often grapple with cash flow challenges, making cash flow advisory crucial for accountants looking to stay ahead and establish themselves as trusted advisors. A substantial 51% believe that modern accountants need skills in financial business advisory, particularly in areas like cash flow and growth modeling.
Utilize modern solutions like Forwardly, to streamline financial management. Forwardly not only predicts future cash flow outcomes and monitors overdue payments but also aids in effective growth planning. Given that a significant 82% of business failures are linked to poor cash flow management, having such tools becomes crucial for accountants looking to strengthen their services in today’s highly competitive business landscape.
Robotic process automation (RPA)
RPA has become one of the fastest-growing concepts in this rapidly changing accounting industry. This intelligent automation enables you to reduce the human labor required to process accounting and financing processes. As per the study, the RPA has reduced the processing time for contracts and audits from a handful of months to just a few weeks.
Accountants and other financial experts can use this future technology to automate their clients’ accounts payable (AP) and accounts receivable (AR) and reconcile information from multiple systems at a fraction of the cost and time. RPA enhances accuracy and quality, offering consistent and error-free results. In the U.S., the RPA market was valued at USD 3.94 billion in 2023 and is projected to reach USD 37.87 billion by 2032, with a compelling CAGR of 28.6% from 2023 to 2032- It’s growing really fast! Leading vendors like Pega Systems, Blue Prism, WorkFusion, and UiPath offer RPA tools to accounting firms worldwide.
AI in accounting means faster, more efficient work. Artificial intelligence integration with accounting platforms offers applications such as data handling & processing, real-time financial status, streamlined data entry, as well as automated AR and AP. Sage reports that 56% of accountants believe AI will enhance productivity by automating various accounting tasks. Neglecting these AI trends may lead to slower work times, with Sage predicting that 58% of accounting professionals will adopt AI solutions by 2024. Leading platforms like Xero, QuickBooks, and Forwardly have already integrated AI to reduce errors and improve workload efficiency, marking a significant shift in the accounting profession.
AI’s impact on accounting goes beyond automation, introducing predictive solutions, smarter assistants, automatic payments, and anomaly detection. So, if you want to be a reliable and trustable financial expert be ready and adopt the change ASAP.
Instant payment technology
Instant payment technology is another trend you’ll witness, and as a financial expert, it’s important to stay on top of it. The launch of the FedNow Service last year has fueled the demand and growth of instant transactions in the USA. Traditional payment methods are fading, pushing financial professionals to embrace faster and more efficient payment technologies. Australia plans to ditch checks by 2035, signaling a global shift. Stay updated and adopt the convenience of instant payments to ensure you’re well-prepared.
Forwardly offers instant payments in just 22 seconds and that too at such a low cost of 1% (minimum 1$ and maximum $10 per transaction. It helps streamline your accounts receivable and accounts payable process. Not just this, Forwardly also offers Partner Program to empower businesses, allowing you to earn $100 per successful referral. You can introduce businesses to Forwardly to support their financial efficiency, reduce the burden of managing finances, and benefit from reduced fees and simplified payments.
Technology is shaping the future of accounting and all of these technologies are becoming part of the finance team at lightning speed. The future of accounting and finance will belong to those accountants and business owners who will adopt it as it is emerging. Don’t let yourself be left behind – embrace the latest financial technologies in 2024 to take your accounting career to the next level and become a financial expert in the future.
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