Accounting in 2020 – What’s Coming for You

This year will undoubtedly bring with it plenty of change for businesses – particularly when it comes to accounting.

Today, we’re here to talk about things we can expect this year, as your experienced Xero accountants.

There’s no need to panic, though. If you’re a bookkeeper or accountant (or simply interested as a business owner), you just need to keep an eye on the following key trends this year.

The ‘B’ word and cash flow management

Following last year’s general election, we at least know there will be some form of Brexit taking place during 2020. At present it’s looking likely to be on January 31st.

What form that will take is still open to debate, but we do know that it will impact businesses and their financial processes in one way or another.

As Brexit begins to take shape, smart businesses will rely on their accountants to plan effectively for the outcome. For many, that will require a much tighter grip on cashflow.

Maintaining a healthy cash balance will be more important than ever in 2020, therefore now might be the time to ensure you have the right forecasting and management processes in place.

Making the most of your cloud accounting software

There are no excuses left when it comes to reasons for not adopting a cloud accounting platform.

This year expect the draw of the cloud to grow even stronger as platform providers continue to offer exciting new integrations for their software.

Thanks to powerful APIs, cloud accounting software can now link up with project management systems, expense tools and payment platforms.

Are you making the most of yours?

Open Banking

Known rather un-sexily as ‘PSD2’ in Europe, the new Open Banking standard is the method by which all accounting software must connect with banks from 14th March 2020.

If you’re using such software at the moment, you’ll probably be aware of the change, because suppliers like Xero and QuickBooks have been ensuring their users switch to Open Banking well ahead of March.

So, that explains the little pop-up you receive every time you go to reconcile your bank, doesn’t it?

The new standard is capable of synchronising all data related to credit cards, account types, and other customer financial information. It does so between banks and accounting applications, among other platforms.

Open banking has received its fair share of criticism due to concerns over data privacy, but it should result in a centralisation of banking services which benefits both customers and businesses.

Regardless, it can’t be ignored, so if you’ve been continually closing that Open Banking prompt in your accounting software, now is the time to finally act.

Goodbye admin, hello AI

Machine learning and artificial intelligence (AI) are often talked about during new smartphone launches, but these technologies are making their way into accounting, too.

Used increasingly behind the scenes of cloud accounting software, machine learning and AI are changing the way people undertake their accounts.

This is felt most significantly when it comes to mundane administrative tasks that can now be automated by software. Data entry, bank reconciliation and receipt capture are just some examples of the tasks that can now be undertaken by ‘the machine’.

Expect this trend to continue during 2020 and watch as you gain back more time to do the important stuff, such as developing your products and delivering a great customer experience.

Excited? Concerned? Need help?

It’s worth reiterating that there’s no reason to panic about the changes we’re likely to see during 2020.

The continued march of exciting new technologies and the opportunities Brexit might create (let’s not get lost in doom and gloom, eh?) should make for a year in which plenty of businesses thrive.

If you want to talk to someone about any of the trends we’ve listed in this blog, or you’re keen to know how the future changes might affect you, just get in touch with the awesome Trinity team, today.

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