Technical accounting is progressing toward the future and expanding as technology advances. With automation and AI-enhancements in software, changes in tax policies, technical accountants need to stay up-to-date with current trends, otherwise entire companies could fall behind in an ever-changing economy.
Last year, the U.S.’s economy experienced some of the highest inflation rates in this country’s history. Although inflation rates are slowly dropping in 2023 and are continuing to decrease as we move through Summer, technical accountants must be alert to current trends and changes in the economy.
Because technical accounting trends are advancing how businesses conduct their accounting practices, it’s important to stay informed and implement the changes in technical accounting.
Some businesses have opted into technical accounting consulting to ensure their company doesn’t fall behind.
Technical accounting consultants provide advice to companies who are facing complex accounting problems.
Current Accounting Trends in 2023
The top trends in technical accounting that every technical account should be aware of are;
Sustainability and ESG
Technical accountants are expected to integrate sustainability and an environmental, social and governance criteria (ESG) into their accounting practices.
Tax Policy Changes
The IRS changed the tax brackets in 2023, making it so Americans won’t have to pay as much in taxes. Most taxpayers will save more money on taxes because their income won’t be taxed as much. These changes were implemented due to the inclining inflation rates this year.
Each tax bracket was pushed up approximately seven percent, meaning Americans can make more money without being taxed for it.
Automation and AI-Powered Software
This year, accountants and technical accounts alike are expected to make room for AI-powered technologies and software.
The daunting, repetitive tasks of accounting, such as document generation and manual data entry, are slowly being eliminated because of automation and AI-powered software.
With the help of automation and AI-powered software, technical accountants can focus on what’s important, the clients and enhancing the business from within
Data Analysis and Forecasting Tools
To stay ahead in 2023, a technical accountant not only must be familiar with the changes in automated accounting software, technical accountants must integrate data analytics tools and forecasting tools.
Data analytics and forecasting tools help a business predict future revenues and income through collecting company data and analyzing their financial data.
These tools are beneficial for any company because data analytics and forecasting tools allow companies to expand financially by foreseeing future economic growth.