EMERGING TRENDS IN

ACCOUNTING
 1. HUMAN RESOURCES ACCOUNTING

Human resources accounting is most valuable resource of any

organization. “ Human resources accounting is the process of
identifying and measuring data about human resources ad
communicating this information to interested parties.
It may be defined as the process of valuing human
resources, recording such value in the books of accounts and
presenting the information in the financial statements of the
business.
 2. INFLATION ACCOUNTING

Inflation accounting is a special technique used to factor in the

impact that soaring or plummeting costs of goods in some regions
of the world have on the reported figures of international
companies.
Inflation accounting is the practice of adjusting financial
statements according to price indexes.
• Numbers are restated to reflect current values in
hyperinflationary business environments.
 3. INVESTMENT ACCOUNTING

Investment accounting is a specialization in the accounting

field that analyses and manages investments accounts. While some
manage their investments, people with large investment portfolios
hire certified investment accountants. Investment accounting
involves managing bonds, stocks and other investments for
brokerage firms and portfolio managers.
Investment accounting is the management and analysis of
accounts actively involved in investments.
4. AUTOMATED ACCOUNTING PROCESS

Accounting automation involves the use of software to automate

important finance operations. Accounting operations like accounts
reconciliation, updating financial data, and preparing financial
statements can be completed without human interaction using
accounting software.
An automated accounting system is a digital system that
allows the collection, storing and processing of financial data that
are used by decision-makers in businesses.
 5. CLOUD BASE ACCOUNTING

Cloud accounting (or online accounting) has all the same

functionality as desktop accounting, but moves the whole process
to the cloud and expands upon it. There's no desktop application –
you log in to an always-up-to-date online solution and all data is
safely stored on a cloud server.
Most cloud platforms will also have an open API,
which basically means third party software can connect with your
system to provide even further value to you as a business owner.
 6. Data analytics and forecasting tools

Data analytics have become increasingly important in almost every aspect

of accounting. Many accounting firms are incorporating data analytics and
forecasting tools into their business model to go ahead of the competition.
Accounting firms utilize Data Analytics to gain meaningful insights into
the finances, manage risk and identify process improvement to increase
efficiency. It has transformed the working of the accounting sector and
raised the bar of competition.
 7. Risk of accounting software solution

Accounting software manages and records the day-to-day financial

transactions of an organization, including fixed asset management, expense
management, revenue management, accounts receivable, accounts payable,
subledger accounting, and reporting and analytics.
• Inaccuracy.
• Disorganization.
• Inefficiency.
• Security risks.
• Impeded reporting capacity.
 8. Block chain

Blockchain is a decentralized, distributed ledger that focuses on

the ownership and transfer of assets. It records transactional data
in a way that's almost impossible to manipulate. Blocks of
transactional data connect in chronological order. The chain of
blocks gives the technology its name.
Blockchain technology enables a decentralized peer-to-
peer network for organizations or apps like Airbnb and Uber. It
allows people to pay for things like toll fees, parking, etc.
 9. Forensic accounting

Forensic accountants are CPAs that look for evidence of crimes and commonly
work for insurance companies, financial institutions, and law enforcement
agencies. Forensic accountants analyze financial records and accounts that
may be used as legal evidence and often testify in court cases as expert
witnesses.
Forensic accountants act as financial detectives, examining
questionable financial data, investigating fraud, and aiding in civil and criminal
investigations.
 10. Advisory services

The accountant provides expert recommendations, options, and strategies to

help business owners achieve their financial and operational goals.

Advisory services are made available with the goal of supporting

undertakings and overcoming weaknesses in particular areas like legal,
business, finance, and so more. A diverse range of business advisors continues
bestowing the best spectrum of professional services to help companies perform
up to the expected mark.
 11. Artificial inteeligence

Artificial Intelligence has had a significant impact on the accounting industry

by automating numerous tasks and increasing efficiency. For example, AI can
create invoices, analyze financial data, generate reports, and identify patterns
and anomalies that suggest accounting fraud.
The most common use for AI in accounting is to take care of
repetitive tasks. For example, AI systems can capably, and with minimal error,
complete tasks that include the following: Inputting and matching data.
Receipt reconciliation
 12. Big data accounting

Big Data accounting and finance is a collection of vast sets of unstructured

data stored in various forms gathered from different sources. It comes in at
such a fast rate that a traditional server cannot process it and is usually
measured in terabytes and zettabytes.
Big data and analytics technologies help accounting
firms offer clients more accurate and impactful services. With aggregated,
industry-wide data analysis, accountants can also better quantify and
contextualize performance metrics for clients.
 13. Remote work setting

Remote work is the practice of employees doing their jobs from a location
other than a central office operated by the employer. Such locations could
include an employee's home, a co-working or other shared space, a private
office, or any other place outside of the traditional corporate office building or
campus.
A remote employee is someone who is employed by a company,
but works outside of a traditional office environment. This could mean working
from a local coworking space, from home, at a coffee shop, or in a city across
the world.
 14. Outstanding of accounting function

The primary functions of accounting are to track, report, execute, and predict
financial transactions. The basic function of financial accounting is to also
prepare financial statements that help company leaders and investors to make
informed business decisions.
The 7 functions of accounting are Accounts Payable and
receivables, Payroll, Inventory cost management, Cash collections & record
keeping, Budgeting, Reporting financial statements, and Legal compliance &
finance controls.
 15. Charging financial standards

Financial accounting standards are defined rules or principals

governing the accounting of economic transactions. They are
usually issued by a country's own accounting standards board or
similar neutral organization.
A finance charge is the total fee incurred by a
borrower to access and use debt. The charge compensates the
lender for providing funds to a borrower. In essence, it is the cost to
borrow money.
 16. Workplace wellness accounting concepts

Accounting concept refers to the basic assumptions and rules and

principles which work as the basis of recording of business
transactions and preparing accounts. This concept assumes that, for
accounting purposes, the business enterprise and its owners are two
separate independent entities.
Employee wellness is built on the premise
that healthy employees have a positive impact on the bottom line in
many ways