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Top 10 Challenges Faced by Accountants in 2021-2022

The last year has had a monumental impact on the accounting profession and has changed many of the ways people do business. Now that it looks like things may settle down to some type of new normal, many businesses are looking forward with cautious optimism. But these changes are likely to extend beyond the end of the pandemic, and this brings new challenges to accountants. Clients in this new environment not only expect accounting professionals to do transactional accounting but to also be strategic advisors by providing accounting advisory services to help them deal with the new challenges. Additionally, accountants are relying on a new generation of accounting automation and business intelligence software like PathQuest® Scale to simplify accounting and give them the tools to provide this level of service. Here are the top challenges that PathQuest® can help them tackle.

1. Cash Flow

Cash flow has always been a concern for accountants, but it is becoming a top priority. Many businesses that struggled through the last year will be optimistic but cautious about the upcoming year. They will rely on their accounting advisory services provider to monitor and improve cash flow and build resilience against any future shocks.

2. Staff Bandwidth

The members of any accounting team have limited time and resources, and new changes will only add to the workload of a team that may already be maxing out their bandwidth. Automating accounting processes with a tool like PathQuest® SCALE will allow accountants to keep up with these changes.

3. Financial Reporting

For both public and private companies that fall under SEC regulations, managing financial disclosures has always been a challenge. COVID-19–related programs added even more reporting requirements. And that is not the end to the changes. Environmental, social, and governance (ESG) disclosure requirements are also coming.

4. Lack of Automation

Automation has changed every industry, accounting included. And soon, it will become the norm in those industries, requiring those businesses that don’t incorporate automation into their workflows to work twice as hard to keep up. PathQuest’s smart BI solution that can automate reports, provide custom accounting dashboards, simplify accounting reporting, and help you keep up with the future.

5. Tax Law Changes

Tax law changes are always a challenge, and tax laws always change, but the pandemic brought with it a whole new variety. The Consolidated Appropriations Act, also known as the COVID-19 stimulus, added over 5,000 new pages of provisions. Navigating these tax law changes requires the right accounting data analytics software.

6. Big-Budget Team

Keeping up with the challenges of the upcoming year is itself a challenge, let alone having enough staff on hand to handle the increased workload these changes create. Finding, hiring, training and retaining new staff requires a heavy budget allocation. The right blended outsourced accounting team and business intelligence software can help an accounting team absorb the extra work by simplifying and automating the accounting process.

7. Regulatory Changes

Another challenge that has remained consistent in the accounting fields over the last few years is adjusting to changes in regulations. Many regulatory changes that were put on hold during the pandemic are still facing businesses in the future, along with the regulations that apply to PPP loans and COVID-19 stimulus packages.

8. New Accounting Standards

Revenue recognition standards, lease accounting standards, and current expected credit losses standards have changed. Any one of these changes to standards would have a dramatic impact on the accounting profession and make accounting business intelligence software a necessary tool to simplify integration.

9. Remote Work

One new normal accounting firms have to face is remote work. After stay-at-home orders were lifted, many companies stuck with the remote work model. For many accounting firms, this means moving to cloud-based accounting and reporting software so that it can be accessed wherever and whenever it is needed for smooth collaboration.

10. Accurate Financial Forecasts

The environment created by the pandemic made financial forecasting a challenge, and just because its effects seem to be coming to an end doesn’t mean business will ever go back to a normal we know. It definitely tested the limits of traditional accounting software. To weather quick changes in business, real-time analytics is a key feature to look for in accounting business intelligence software.
These challenges are no match for a provider of accounting advisory services if they are equipped with the right automated accounting solution. PathQuest® SCALE is an end-to-end solution that can help you tackle these challenges as well as increase productivity and save time. SCALE provides reporting automation powered by PathQuest® BI.
PathQuest® Scale and BI work together to provide a clear, holistic picture of a business with custom accounting dashboards, real-time financial insights, automated reports, smart KPIs, financial performance analytics, and integration with popular accounting software like QuickBooks Online, QuickBooks Desktop, Xero and Sage Intacct.

Isn’t it time to simplify and automate accounting with PathQuest® so that you are ready to face these challenges?

Thinking about how to get started with PathQuest® SCALE? Let us assist you.

References

PathQuest® Blog

Net Suit

FASB

Journal of Accountancy

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