The popular phrase “Change is the only constant,” attributed to the ancient Greek philosopher Heraclitus, encourages openness to change and a mindset to adapt. Change is challenging, but coping with it can be a valuable opportunity for growth. Accounting, which some may perceive as an age-old practice, is constantly changing, keeping accountants on their toes. While the principles of accounting and the goal remain the same, the industry is experiencing a paradigm shift.

• Accounting & Bookkeeping are no longer repetitive tasks; AI-driven bookkeeping has automated them.
• Robotic Process Automation (RPA) has made functions like invoicing, audit trail maintenance, and reconciliation automatic.
• The ecosystem has progressed to data-secure platforms and cloud-based accounting. Outsourced accounting and bookkeeping firms are expected to offer advisory services, as most of the manual and repetitive tasks are thoroughly automated.

What, then, is the future of accounting, and how can my business stay ahead of the competition?

Contents of the article

In this article, we discuss the new standard—seamless tech integration and increased regulation in accounting—and how to navigate these changes to not only survive but stay ahead in the years to come.

1. AI Automation and Tax Planning

Fun Fact: The IRS is also digitizing operations and expects fully digital audits and correspondence by this year

With AI having diverse and specialized tools for repetitive tasks and advancing further into tax planning, an accounting firm must embrace automation and AI and build a robust workflow.

Popular Software & Their Purpose:

• Tools like QuickBooks AI, Xero, and others in the industry, including Zoho Books and Sage Intacct, support AI-driven Bookkeeping and streamline repetitive processes.
• Robotic Process Automation (RPA) is being used for invoice processing, audit trail maintenance, and reconciliations. RPA tools like UiPath and Blue Prism are essential to automate recurring tasks.
• Tax Planning uses tools like Intuit Tax Advisor, Canopy, or Avalara, which offer scenario-based tax planning, to predict potential tax savings.

How to adapt?

• Recognize and automate repetitive tasks. Once you decide on the right software to automate repetitive operations, train your staff.
• Reduce or withhold further investment toward data entry and basic accounting jobs.
• Upgrading yourself and your team with courses in AI and accounting automation on portals like Coursera and LinkedIn Learning can be very beneficial.
• Move towards training your staff to focus on reviewing and interpreting. The future of accounting will require advisory roles that add more value to clients than basic reporting.

2. Cloud-Based Accounting

Cloud-based accounting has become the backbone of new-age accounting, enabling real-time collaboration between clients and firms and improved access to financials. The need for cloud-based accounting has increased because of the demand for cybersecurity.  

Popular Software & Their Purpose:

• Cloud accounting platforms like QuickBooks Online, Xero, NetSuite, and Zoho are prominent among small- and medium-sized businesses.

How to adapt?

• Choose cloud-based accounting platforms over desktop accounting
• Invest in secure digital portals and make them accessible to clients
• Offer mobile-enabled services to your clients.
• You can achieve this by partnering with cloud service providers or hiring IT consultants to aid migration.

3. Advisory Services 

In addition to routine services like tax, audit, and bookkeeping, firms are moving towards advisory services. Companies have always sought expert perspectives. Advanced information dashboards and projections using data have enabled more companies to act as advisors.

The most requested services are

• Financial planning & budgeting
• Performance analysis
• M&A support—(valuation & Due Diligence)
• Risk assessment & management
• Cash flow forecasting,
• business structuring
• succession planning.
• Pricing Strategy

Popular software and their purpose:

Excel, Power BI, or Fathom are used to build insightful dashboards using financial reports.

How to adapt?

With more of your resources engaged in automation, you have time to act as an advisor. It’s time to stop being seen only as a “tax preparer” and instead become a business partner. Build trust and position yourself as a strategic partner.

• Learn consultative skills and invest in client relationship tools (CRMs).
• Offer services like budgeting, forecasting, business planning, and risk assessment.
• Focus on client education and insights, not just reports.
• Provide future-centric advice: cash flow forecasting, business structuring, and succession planning.
• Explain financial reports to non-finance clients in clear terms.

4) Regulatory Scrutiny & ESG Reporting

There has been a notable rise in SEC and IRS enforcement actions. Companies have to adhere to the newer compliance requirements. While staying compliant is a necessity for you as an accounting firm, it’s a value-added service you can offer.

Firms need to stay updated on beneficial ownership reporting as per the Corporate Transparency Act. Companies are also under pressure from evolving IRS compliance measures regarding digital assets.ESG (Environmental, Social, and Governance) reporting and assurance services are in demand for public and mid-size firms.

How do we capitalize on the change?

• Get educated about the ESG frameworks: SASB, GRI, TCFD.
• Stay compliant with beneficial ownership laws.
• Offer ESG data collection & assurance as an additional service.
• Stay updated about newer regulations and keep your expertise ready to offer

5) Cryptocurrency & Digital Assets Accounting

In 2025, there will be more demand for the valuation of digital assets (such as cryptocurrency), and firms must account for this according to FASB guidance.

Popular software and their purpose:

CoinTracker, ZenLedger, or Ledgible are crypto-tax accounting tools that show gains and losses. Some help generate tax reports for regulatory compliance.

How to adapt?

Learning to account for and tax digital assets under new FASB and IRS guidance can open up a whole new niche you can capitalize on.

·        Invest time in understanding the features of cryptocurrency and other digital assets

·        Choose a comprehensive and compatible software to use to help value and account for clients’ digital assets

6) Improved user experience 

This is an ongoing and ever-prevalent change; clients expect seamless digital interaction: document uploads, signatures, real-time access to financials, and interactive dashboards.

Popular software and their purpose:

·        Karbon, Jetpack Workflow, or Client Hub: software built around the need for workplace automation, team collaboration, streamlining work, and enhancing client experience

How to adapt?

• Implement e-signature tools, client portals, and app-based communication.
• Focus on speed, transparency, and ease of use.
• Set up a branded client portal to build better access for clients to their data.

7) Invest in People and Culture

Upskilling and creating a culture centered around innovation and continuous learning helps keep you in tune with the growing demands of the accounting ecosystem. The talent gap in the accounting industry and the need to upgrade fast add pressure to owners of accounting practices. Here’s how the future of accounting requires you to attract and retain talent. 

How:

• Consider offering flexible and remote work.
• Upskill your team in tech, client communication, and analytics.
• Enroll to learn AI for Accountants, ESG assurance, or Data Analytics certifications.
• Join peer groups like AccountingSalon, Thriveal, or AICPA roundtables.

Conclusion 

From the above changes in the accounting industry, installing a few new software programs and upskilling your staff can help you stay ahead of the competition. However, change is never that simple; the future of accounting has tens of factors that interact with each other, creating a static ecosystem, leaving accountants in need of Heraclitus’s philosophy of openness to change. Profitjets is an experienced and trusted company that provides outsourced bookkeeping and accounting, taxation (planning and strategy), expert CFO advice, and more! We believe in rapid change and use the most adaptive and compatible software to meet your current and future needs. Get in touch with us for your accounting and compliance needs.

Frequently Asked Questions