Accounting in the year 2020 is more than just crunching the numbers and availing maximum tax benefits. It is about going ahead and overcoming the major challenges faced by accountants that are hindering you from achieving your goals. The failure to see these and acting on them promptly, not only affect your profits, but derail you from your path of efficiency.
This blog is a round-up of all the challenges and industry forecasts for the year 2020, and how you can act on them today, and secure your accounting practices with a clear and promising future.
Accounting Challenges Faced by Accountants Today:
Keeping Up With the Changes in Tax Regulations:
Tax compliance and maximising client benefits is the base task for any tax accountant. But the constant changes in taxation are making the need to keep up with the updates, more important than ever. Whether it is to do with regulations, client benefits, revenue generation, etc. or more complex changes, failing to abide by which can lead to errors and monetary fines. It is very important to be up-to-date with the current tax regulations and constantly be updated with any changes occurring during the financial year.
Repetitive Tasks Everyday:
As an accountant, there are chances that your daily task sheet almost always involves the same tasks in a clock-work manner. The excitement of variety or differing accounting challenges in your job is absent as an accountant. Additionally, when there is a monotony of tasks then there are chances for lack of interest and soon the creeping in of errors.
Long Working Hours:
On an average an accountant works an average of 80 hours a week. And when it is the year-end, this work time almost always escalates. This leads to an exhaustive work-life balance, where you are almost always bundled under a pile of files. Not missing the need to still be innovative, vigilant and active for each of your clients. It is imperative to have a reliable back-end team as an accountant, with whom you can delegate your tasks effectively and reduce your work stress.
Increasing Competitiveness by the Day:
Accountancy is a swelling field with new entrants coming in each quarter. Now, with more candidates comes more competition. No matter your certifications and qualifications, each accountant is having to compete and race with an exceeding number of competitors in the field. Therefore, the need to have a typical niche and an edge that makes you more competent and different from your competitors is the need of the hour.
Also Read – Different Branches of Accounting: What Are They and How They Work
The Training is Never Over:
The reality of being an accountant is that you never really finish your training. There are always more certifications, qualifications and the unending need to be updated with changes in tax regulations. As an accountant, you almost always continue to train yourself in the span of your career. It is important to always be updated with refreshed knowledge and continuously evolving with new techniques and the software support in your field.
Accounting is a career that is bound by dates and timelines. Missing one by error, snowballs into multiple adverse effects, fines and troubles. Not to miss, the loss of your integrity, market value and your valuable clients. Therefore, as an accountant it is of utmost importance to understand the importance of these deadlines, abide by them and organize your work in a way that you are always ahead of your schedule. It is important to have a strong back-end team that can either ease this organization for you or come on-board and share your swelling responsibilities to ease you down.
Automation and AI Taking Over Traditional Accounting:
In the wake of increasing business competition, accountants are now having to compete head to head with holistic accounting softwares and AI support. It has not only brought convenience for your potential clients, but has also led to the recurrent need to understand and ace these software. The only way to get over this challenge, is to be able to understand and gain expertise on these innovations or have a team of individuals who can aid you in this field. So that you will be able to get more support and increased client satisfaction in your career.
Accounting forms the base task for effectively running any business. It is an omnipresent need of any organization, no matter how big or small it is. But behind all these truths, is the ultimate fact that accounting as a profession is not a cakewalk. There are multiple accounting challenges, problems and recurrent issues that are faced by accountants on a daily basis.
However, proper management, meticulous planning, and the right team can get you ahead of these problems and make life easier for you. Meticulous streamlining of your profession and having the right strategization can help you in taking charge of your business better. It’s time to pull up your socks and get ahead in your business with the right knowledge like never before!