We are nearly one month into 2024, and already the predictions for how accounting will change this year have come. This year hosts a number of hot topics, including AI and machine learning, blockchain, and more.
Here’s what some of the biggest companies in accounting and finance are predicting for 2024, as well as our take.
Scroll to the end for our prediction for 2024.
Cloud-Based Software Will Become the Norm
The prediction: One major firm believes that cloud computing has become the “backbone of modern accounting systems”. Citing flexibility, cost-effectiveness, and the ability to access data from anywhere, this firm believes everyone will adopt online accounting software in 2024.
Our take: Yes and no. While free versions like Wave and Xero offer invoicing opportunities, robust accounting platforms aren’t always cost-effective for the small business owner. Additionally, cloud-based software like Quickbooks has a high learning curve and is very easy to get messy. As a fully cloud-based software firm ourselves, we believe that cloud-based accounting is the norm for accounting firms that are up to speed. At the client level, however, we expect more businesses to outsource their accounting to firms that have the time and expertise to manage day-to-day accounting and data upkeep.
Increase in AI, Machine Learning, and Blockchain
The prediction: With artificial intelligence and machine learning taking the internet by storm, one major firms predicts these will become the backbone tools of accounting—mostly for accuracy and efficiently. What’s more, the same firm predicts that AI will change how CPAs interpret financial data, and that we will become to rely on AI for forecasting and analysis much more than ourselves. Blockchain, the firm predicts, will also be implemented for better security and transparency as the cornerstone of cryptocurrency.
Our take: First off, blockchain has already been implemented for firms like us that offer cryptocurrency accounting services (and use dedicated cryptocurrency accounting software). So, nothing new there. The predictions is a bit late to the game. Regarding AI and Machine Learning, we are a long way off from AI being a reliable predictor of future outcomes. Especially for firms like ours that work with a range of individuals and company sizes, we have to consider the risks to our clients livelihoods. While it can be a tool used in some cases, it should also be respected for its limitations and potential for error. In short, we don’t see major adoption of AI coming our way just yet. This one feels a bit premature.
Automation Will be a Focus for 2024
The prediction: Based on data that indicates 29% of automated technology is used in accounting, and that an 80% increase in operational efficiency comes when accounts payable is automated, the prediction here is that automated technology with minimal human assistance will replace the most tedious processes.
Our take: Well…yes. Automation is great, but it’s already here. Quickbooks’ automation reduces the room for error by auto-populating entries, and robust invoicing software that allows for automated invoicing and reminders certainly does cut down on time. But, automation has been around for a while now, and is the cornerstone of most modern accounting firms.
Accounting Firms Will Shift to Value-Based Pricing
The prediction: One major US firm believes that value-based pricing is going to become the norm in 2024. This means that firms will price based on the value delivered to clients rather than simply the hours worked. This would mean firms working toward a deeper understanding of their client’s businesses and needs, as well as tailoring services with a focus on quality client relationships rather than quantity of clients.
Our take: While this prediction is a little misleadingly phrased (the value can be built into the hours pricing), it is spot on for our experience. Our rates are in line with our goal of having partnerships with our clients, and truly becoming experts in their field of work. We focus on customer service, providing grab bag style services so our clients can get help with the things they need without the services they don’t need, and high quality work that stands above the rest.
Bigger Push for Data and Analytics
The prediction: One association believes that data will be de-siloed, meaning that analytics will become more robust and critical in 2024. Not only will accountants want to harvest this data for predictive analysis and decision-making, clients will be asking for more data as well.
Our take: We’re numbers people. Analytics and analysis is at the heart of what we do. We’re not sure how the push can be bigger, but for our clients who are business owners, it’s always great when someone wants to see and understand the numbers.
IRS Rules and Regulations Will Change
The prediction: Regulators will continue to update regulations, which will require a change in workflows and for all in accounting to keep up. Routine review of compliance strategy will be necessary.
Our take: Yes, tax reform and IRS regulation changes are so frequent that it is essential to keep up. Especially in years with inflation-mitigation and mid-year changes to some deductions. One thing this prediction misses—the ever-evolving regulations in the crypto sphere. Our team of cryptocurrency CPAs anticipate a push for greater regulation (based on what’s happening in other countries) and some fine-tuning of current regulations.
The Role of the CPA, Accountant, and Bookkeeper Will Expand
The prediction: The roll of every type of accounting professional is expanding as CFOs, controllers, and even CEOs get more involved in data analysis and strategic planning, and want to bring versatile accounting teams into their businesses to help the core model succeed.
Our take: We are definitely seeing this already begin to happen. Not only is our accounting and bookkeeping work becoming more and more important to our clients (especially in data analysis and predictions), we are seeing more requests for our outsourced CFO services, and to offer third-party oversight of in-house teams. On both the outsourced side and the in-house side, it seems the accounting team is getting a bigger highlight than ever before.
Outsourced Support Will Be More Popular Than Ever
The prediction: With the desire for financial expertise bigger than ever, and budgets especially tight, one firm predicts that outsourced, part-time controllers, CFOs, and accountants will be more and more common in 2024. This firm credits some of the “fluid nature” of remote and contract work that’s been in place since the pandemic.
Our take: This is certainly the trend we are seeing. We do believe much of this drive comes from wanting to offload resource-intensive and exhaustive work onto an expert, in addition to a desire for greater expertise and cost-savings. The cause is certainly a trifectal desire for expertise, cost-savings, and oversight. We think this prediction is spot on.
Our Prediction: Virtual Meetings and Communication Will Become Standard
If there’s one thing we saw in 2023, it was a desire for fully-virtual services. We took more virtual meetings than ever before, and found new clients relieved that they could upload documents through our portal and not have to worry about coming into the office.
Our prediction: Our expectation is that in 2024, most clients will prefer virtual services, with primary communication happening over phone, email, and sometimes video chat, and all documents uploaded remotely. With an increasingly mobile and remote workforce, it’s only natural that people and businesses will expect the same from their CPA.
