What’s on the horizon for your business?
We are looking ahead to 2024 for the latest in accounting trends and predictions. These trends will shape the way many of us do business and determine priorities for leadership teams in all industries. While nothing is definitive, these accounting trends are our best estimate of what you should expect to see as you take your organization into 2024.
It should come as no surprise that AI tops the list as one of the biggest accounting trends for 2024. What might surprise you is that 96% of finance leaders are already or interested in using artificial intelligence. If you haven’t decided how AI fits into your finance team, consider one of the top three areas that finance leaders have already put it to work:
- Customer service
- Fraud detection
- Risk management
Furthermore, CFOs and controllers are investing in upskilling their teams to allow for more resources to be allocated to learning AI technology.
2. Higher demand for up-to-the-minute analytics
Updated reporting is key for making crucial business decisions and attracting investors. There is added pressure on finance teams to provide current reporting more often. This can be because of competitive startup markets or economic uncertainty. When the future is unclear, leaders and stakeholders want a live pulse on the financial health of a company.
This is extremely difficult if accounting and financial reports are backlogged. Maintaining healthy books, using cloud-based software, and implementing healthy accounting practices are instrumental to having live financial data at your fingertips.
If you want to sway investors and improve your business analytics in 2024, make sure you have access to up-to-the-minute financial data.
3. Real-time payments are on the rise
Technology is pushing everyone toward instant gratification and that includes client-vendor relationships. Real-time payments (RTPs) are transforming the world of invoicing by enabling near-instantaneous transferring of funds.
RTPs are setting off a chain reaction of innovation for everyone in banking, invoicing, and otherwise, as this traditionally multi-day process becomes extraordinarily easier. RTPs transfer cash between banks 24/7 365 days a year.
Imagine quicker access to cash, better cash flow predictions, and improved capital management. RTP platforms are on the rise after the launch of FedNow in July. This one is a win-win for everyone.
4. Increased focus on sustainability and reporting
Sustainability has been top of mind for many financial leaders for the past few years, and that’s not going to change. It can still be difficult to measure a company’s sustainable impact, but the returns on building a company around sustainability can be felt on both the investor and consumer sides of your business. It can even affect how you are able to attract talent with 40% of millennials choosing a job because of their sustainability.
What metrics should you be tracking? Here are a few examples:
- Carbon emissions
- Energy improvements
- Climate risk
- Waste diversion
- Water reduction
Being able to track and report this information can be a major factor for swaying investors. While consumers are soon considering sustainability a must-have from the brands they choose.
5. Blockchain and distributed ledger technology
Blockchain technology is poised to revolutionize the accounting and finance landscape in 2024. Its decentralized, secure, and transparent nature offers a plethora of benefits that will streamline operations, reduce costs, and enhance trust within the financial ecosystem.
Accounting and finance teams can leverage blockchain’s distributed ledger technology to eliminate manual reconciliations, automate repetitive tasks, and ensure the integrity of financial data. This will save time and resources, minimize errors and fraud, and foster trust among stakeholders, leading to more efficient and reliable financial reporting.
6. Fractional support will gain popularity
With tight budgets, but a need for financial experts, demand for fractional controllers and CFOs is on the rise. Although it’s not a new concept, the fluid nature of the post-pandemic workforce has embraced remote and fractional workers.
These part-time virtual finance leaders can be transformative for organizations that need finance leadership but cannot afford full-time executives. They are flexible, experienced, and able to integrate into organizations seamlessly.
How your team can prepare for 2024
Your 2024 finance goals should include ways you can streamline processes with the help of AI technology, improve financial reporting with live data, and set up a cash reserve to protect your business during slow seasons.
Need help? Schedule a free consultation where we can talk about what to expect in 2024. Our team of accountants, controllers, and fractional CFOs are ready to help.