Top Accounting Trends to Watch in 2025

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Accountingtrends date back to ancient civilizations, with evidence found in Mesopotamia as early as 7500 BC.

Today, technologies likecloud computing,AI, and automation are driving a new wave of transformation in theaccountingindustry.

Staying aware ofaccountingtrends is important for businesses and accountants in maintaining competitive and compliance practices.

Since the shift toAIaccountingis inevitable, below are someAI-poweredaccountingtools.

Blockchain Technology

Blockchain technology is inherently open, immutable, and decentralized.

These virtues make blockchain andaccountinga match made in heaven.

Its also expected that companies usingcloudaccountingwill add five times more clients than companies banking on traditionalaccountingpractices.

A few popularcloudaccountingplatformswe recommend include Xero,QuickBooksOnline, andFreshBooks.

However, it has been delayed until 2026.

Cross-border Taxation

Over 100 countries have required foreign businesses to register and collect local tax.[12].

Smaller companies are now required to report their impact on ESG metrics in 2024.

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Some frameworks used in ESG reporting include the following.

This trend does not seem to go away anytime soon.

Also, 43% ofaccountingfirms are reducing on-site presence and transitioning to virtual-only work environments.

Remoteaccountinghas its benefits as well as its challenges, which we will look at briefly.

3rd-party agencies winning company-internalaccountingprojects is yet another trend picking up steam.

AccountancyAge has reported a 40% increase in global spend and 20% showing greater interest in outsourcingaccountingservices.

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A 2023 Clutch report indicates that 14% of small businesses were ready to outsourceaccounting.

The benefits sought in such cases are given below.

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Enhanced efficiency:Outsourcingaccountingprovides more time for core business activities.

Access to specialized expertise:Third-party platforms make accessing specialized expertise easier.

Cost saving:Third-party services can help save the cost of hiringaccountingexperts.

Additional services:Manyaccountingfirms also include services likepayrollservices and financial software integrations.

Carbonaccountingmeasures the quantity of greenhouse gases (GHGs) produced by an organization.

Additionally, it allows investors to assess the environmental risks or opportunities associated with potential investments.

The future ofaccountingis beyond just financial reporting and accounts reconciliation.

Clients needs are changing and technology is revolutionizing the way things are done in theaccountingsector.

Accountants andaccountingfirms also have to broaden their offers and become more knowledgeable in financial strategy and climate consciousness.

Overall, the future ofaccountingis deeply rooted in technology, which will keep evolving at a rapid rate.