Many businesses and industries face many challenges because of the COVID-19 pandemic and the accounting industry is no different.
These challenges have been met by adjusting some practices and adapting others so that both the clients and those working in this sector can stay safe during these difficult times.
In order to stay competitive in the job market, many have turned to taking Continuing Professional Development (CPD) courses. CPD courses for accountants can help accountants stay updated with the latest changes in the accounting industry, especially following the aftermath of the pandemic.
Let’s assess some of the major effects of the pandemic on the accounting industry.
Major Impacts of COVID-19 on the Accounting Industry
1. Increased Use of Digital Tools
COVID-19 has created a significant change in the way companies do business and think about their operations. One of the most visible changes has been the increased use of digital tools to communicate and collaborate.
This is particularly true in the accounting industry, where many firms have rapidly adapted their workflows to make use of cloud-based applications and other digital tools. While this remote work model has its challenges, it also offers several advantages, such as increased flexibility and the ability to work from anywhere.
The most popular accounting tools that have seen an uptick in usage because of the pandemic include time tracking, invoicing, and project management software.
Additionally, accounting firms are using more video conferencing tools to connect with clients and team members.
2. More Focus on Cybersecurity
With more employees working remotely after COVID-19, there is an increased risk of data breaches and other cyber attacks. And that’s why it’s vital to protect client data and confidential information because of the sensitive nature of the work.
As a result, many accounting firms have beefed up their cybersecurity measures, such as investing in data encryption and two-factor authentication. They are providing more training to employees on how to spot phishing scams and other cyber threats. By taking these precautions, firms can help mitigate the risks associated with remote work.
3. Greater Scrutiny of Corporate Spending
The pandemic forced many companies to tighten their belts and reevaluate their spending, as businesses are now scrutinising every line item in an effort to save money.
In the accounting industry, this increased scrutiny has led to a greater demand for cost-effective solutions. Many firms are now using artificial intelligence (AI) to automate repetitive tasks, such as data entry and invoicing.
This not only saves time but also reduces the likelihood of errors. Additionally, firms are looking for ways to reduce travel expenses by conducting more video conferences and webinars.
The COVID-19 pandemic has affected many businesses and the accounting industry is no exception. Firms have had to change the way they operate, from investing in new technologies to rethinking their pricing models.
While the pandemic has presented challenges for the accounting industry, it has also created new opportunities. Firms that can adapt and change will be well-positioned to succeed in the post-pandemic world.