The three biggest challenges facing the accounting profession today
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The three biggest challenges facing the accounting profession today

Accounting won’t just stop at numbers. Here are today’s biggest accounting challenges and how to tackle them. Since the passage of the Tax Cuts and Jobs Act (TJCA), which the American Enterprise Institute has called “the most significant change in our tax code in decades.” Read blog and know how to become the accounting profession.

As of 2020, the IRS continues to work on tax code reform, and accountants and business leaders are still determining the impact of TCJA and the best strategies to maximize its benefits. TCJA.

But navigating “the Tax Cuts and Jobs Act” is the challenge the accounting industry will face. All businesses will face similar accounting challenges next year, and if you mishandle any of these, such as missing a deduction at tax time. If your data is vulnerable to hackers or not using the right accounting software will cost you money. And if your business is losing money, your business is going to fail. That is the general opinion of the accounting profession.

By educating yourself and recognizing the major challenges at hand, you can reduce the risk these challenges pose to your business and gain a competitive advantage. 

Challenges

 

1. Enforcement Act “Tax Cuts and Jobs Act” continues

The “Tax Cuts and Jobs Act” are treated as the “foundation” of tax reform, affecting everything from GMT food and entertainment expenses to depreciation. Here are some of the biggest lessons learned from the Tax Cuts and Jobs Act for businesses:

-Entertainment expenses are no longer deductible.

-A depreciation bonus allows businesses to immediately depreciate 100% of business assets such as vehicles, computers, and other equipment over the next three years.

-Using the cash method of accounting, this method is often simpler and cheaper than accrual accounting.

SOLUTION: 

Make sure you keep your accounting software up to date on a monthly basis. So the accounting software can do the heavy lifting for you when it comes to new TCJA deductions and rates. Or use estimating management templates, so that the numbers are tightly controlled. 

Carefully read “the Tax Cuts and Jobs Act”. Think about ways your business can take advantage, such as cutting entertainment costs, investing in new business equipment before the end of the year, and providing paid medical and family leave to your employees.

 

2. Automation and AI are taking over more traditional accounting tasks than

Robots are not coming to take your job. But AI can, they are becoming increasingly intelligent and capable of handling complex accounting tasks like collecting transactions and aggregating them into financial statements and tax returns. Here’s the good news: Automation can take tedious tasks off your heavy to-do list.

In fact, it is estimated that by implementing robotic process automation. 40-person accounting team could save up to 25,000 avoidable rework hours per year, spending time on higher-value jobs such as analytics and forecasting, while increasing engagement and reducing employee turnover.

SOLUTION:

Treat the automation of repetitive tasks (e.g. payroll, tax form preparation) as an opportunity for growth rather than a challenge.

People still need to double-check the work done with automation. The best accounting professionals will make them invaluable by evolving into more consulting roles. Helping their businesses grow properly deploy new accounting automation technology as it becomes more capable and complex.

Accounting automation is here to help you do your work more efficiently. Think about all the ways it can save you time so you can focus instead on strategic, non-repetitive tasks, such as financial planning and analysis or management. financial risk management.

 

3. Software Technology Trends

The simple reason for using accounting management software is to join the digital age and not let human value lose to AI. The accounting profession always do that.

There are many management software use in the accounting industry, with many different features and capabilities. These software technologies allow users to estimate and calculate expenses,… and especially control the cash flow of your business. 

SOLUTION:

Select and use appropriate software, for example, UpDiagram, software with many special functions and dedicated to accounting:

– Various data fields: images, text, lists, checkboxes, date, progress, until the calculation formula

– Email and In-app notification for accounting activities

– And types of calculations and estimates are

UpDiagram is used to manage accounting projects, Excel is used to control data, especially now UpDiagram can export data to Excel files.

Challenges will make people develop, challenges in the field of accounting are lessons learn and later knowledge for the path to becoming The accounting professional.

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