Rose Report: Issue 59
Top 5 Finance and Accounting Industry Trends for 2023
By Ted Rose, President and CEO, Rose Financial Solutions
As we close out 2022 and look ahead to 2023, the lingering effects of the pandemic will continue to influence the business world. The current economic downturn, unpredictable workforce trends, and supply chain challenges are driving companies to implement transformative changes to their operations, including how they manage their finance and accounting functions. Technology will take center stage in the upcoming year, influencing each of the top five trends in the finance and accounting industry.
The area of technology has seen the most substantial advancements in the past year, and this trend will continue through 2023. Businesses that invest in finance and accounting technology will have an advantage over their competitors in navigating today’s unpredictable economic climate. The finance and accounting profession is already embracing new technologies such as artificial intelligence (AI) and machine learning (ML), which will significantly impact how firms operate in the future. With automated procedures in place, AI and ML will code, route, and evaluate information and provide additional insight based on potential financial outcomes based on trends in market and company data. Businesses that want to lead their respective industries must develop an infrastructure that can capitalize on the potential of these technologies.
While compliance and maintaining records are essential accounting functions, in 2023, financial clarity and visibility into financial results will be critical. The current economic headwinds have created a paradigm shift that increases the importance of CFO services to overcome financial challenges, develop proactive strategies, and manage growth.
Outsourcing Finance and Accounting Functions
With the effects of the pandemic, outsourcing has become increasingly popular for organizations struggling with employee shortages and rising hiring costs. In fact, according to Deloitte, 70% of businesses outsourced a portion of their accounting functions to reduce business costs in 2020. Outsourcing offers additional benefits, including an expanded team of skilled experts, reduced onboarding requirements, and improved delivery times. The movement to the next generation of finance and accounting outsourcing, Finance as a Service (FaaS), will continue to grow in 2023 as companies seek greater insight through the combination of cutting-edge technology and a team of finance and accounting professionals.
Financial records are the lifeblood of any organization. As such, keeping them secure is an ongoing concern for CIO’s and CFO’s. That’s why the movement towards hardening access to corporate data through security measures such as multi-factor identification, encryption, and security awareness training will continue to be a top priority in 2023.
Simplifying Back-office Functions
As companies embrace digital transformation, they are moving towards connecting back-office functions into a comprehensive system that improves visibility, communications, and access. While this functionality has been traditionally limited to a full ERP implementation for larger enterprises, novel technologies are making this possible for smaller companies to eliminate tedious processes, improve efficiency, limit risks, and reduce human error.
These trends indicate that technology advancements will remain a priority in the finance and accounting industry in 2023. It is important to note, however, that technology will not replace accounting and finance professionals, but rather enable them to focus on higher level tasks such as financial analysis, process development, and strategic initiatives.
If you would like to learn more about these trends and how they can help your company succeed in 2023, please schedule an introductory meeting.
This content is for information purposes only and should not be considered legal, accounting, or tax advice or a substitute for obtaining such advice specific to your business.