As we continue into 2020, we wanted to share some of the things we’re preparing for over the year ahead. Here are four of the trends we think will have a big impact on the accountancy world in this new decade.
Brexit and cashflow
Now that the withdrawal agreement has been signed, it’s safe to say there will be notable changes to business and financial processes so it’s important to plan for a variety of different outcomes. With the inevitable continued uncertainty during the transition period, cashflow forecasting and management will be one area where you can be prepared.
Open Banking refers to the practice of sharing data with third-party financial service providers, such as consumer banking and transaction history. The aim is to provide better competition and bring down barriers of entry for those who want to get involved in the finance sector.
It gained momentum in 2019, with a 150% increase in the number of conferences and events focusing on it. Many countries outside the UK, such as Canada and Brazil, also launched whitepapers and began developing their own Open Banking models.
In particular, Open Banking has changed the way banks connect to accounting systems, such as Xero, and has transformed the way bank feeds are provided. Although the Withdrawal Agreement has been signed, the UK is still under the jurisdiction of the EU during the process, so businesses will have to comply with their new Open Banking standards, due to come in on 14 March. This will mean you should check whether your feed is connected to your bank and switch if required. Guidance is available from providers on how to get new feeds set up.
The future seems bright for this young, technological experiment and we look forward to seeing what 2020 holds.
Machine learning and AI
Another trend that we can see garnering even more popularity in 2020 is machine learning and AI. Machine learning helps with data capture and enables companies to refine their customer experience among many other uses. We can see AIs having a major impact throughout 2020 in the way they automate tasks such as bill and receipt capture, data entry and bank reconciliation. Such software will help save both your time and ours, while also providing accurate data to help us improve our service.
Application program interface or APIs, for short, allow different pieces of software to communicate effectively with one another. This interfunctionality is something we can see growing further during 2020 and it will provide a whole slew of benefits for you, the client. APIs will help us to better integrate our various pieces of accounting software and applications, allowing us to better manage our people and processes.
With so many financial technology companies receiving huge start-up investment during 2019, there’s little doubt that this market sector will continue to grow.
We hope you enjoyed this brief look into what 2020 will hold for the accountancy world. If you have any questions about what we’ve discussed above, feel free to get in contact.