Top 2023 Accounting Trends to Watch with John Savignano CPA

Top 2023 Accounting Trends to Watch with John Savignano CPA

Felix Yim 28/12/2022
Top 2023 Accounting Trends to Watch with John Savignano CPA

Due to ongoing changes encompassing everything from new technology to evolving client attitudes, the accounting industry is rapidly changing.

The key to remaining competitive in the brave new world? Commit yourself to keeping up and staying ahead of the curve.

With years of leadership experience in finance and accounting, John Savignano CPA, CEO of New York City tax research, compliance and consulting firm Bottom Line Consulting, has advantageous insights to share on the industry’s current state—and where it’s headed for 2023. 

Here’s a look at five accounting industry trends Savignano anticipates looking to the upcoming year, along with tips on how today’s forward-thinking accounting industry professionals can capitalize on them. 

Remote Work Will Reign

While the pandemic is (largely) over, it left behind a transformed world. While some aspects of work and life will return to how they were before, others will become our new normal, according to John Savignano. 

At the top of the list? Remote work. 

Not only have many accounting firms realized the financial upsides of maintaining remote and hybrid workforces, but remote work technologies arose out of necessity during COVID-19 with the potential to continue to add value for accounting firms and clients alike. 

Given today’s labor shortage, staffing innovations go hand-in-hand with the movement toward more remote work arrangements. For example, according to accounting industry insiders, nontraditional staffing strategies like outsourcing, fractional staffing, and the rise of solo and small practitioners may also have major moments in 2023

The Rise of Advisory Services

Gone are the days when accountants merely provided basic bookkeeping and tax preparation services. While these services remain important for modern businesses, accountants are capable of adding exponentially more value. Enter advisory accounting services, including personal financial planning. 

In today’s intensely competitive business landscape, all organizations are looking for ways to gain a critical inside edge. Accountants can help them position themselves to do just that by making strategic recommendations aimed at helping them streamline their operations, improve efficiency, or address other impediments to performance and productivity.

Financial technology is a major part of these services. For example, operations software management can help businesses do more with less, thereby freeing up employees to focus on the work that matters most instead of on laborious low-impact tasks. 

Meanwhile, individuals and organizations are facing unprecedented challenges resulting from economic turbulence, from skyrocketing interest rates to the Great Resignation. Accountants can offer excellent guidance in helping clients continue to move toward their financial goals while navigating these complex issues.  

On this front, John Savigano offers some words of assurance about the temporary nature of these challenges. “Everything is cyclical. What goes up comes down. So we’re in unprecedented waters here. But here in the States, they’re talking about this pivot where the rates will stabilize or come down at some point. I think it’s more psychological than anything else, just trying to control certain behaviors. So I guess they’re trying to get people to spend less until the supply chain works itself out,” he says. 

Not only that but there will also be windows for leveraging setbacks into successes. “These recessions create opportunities, but you’ve got to be prepared for them,” Savigano continues.

Accountants with Diverse Skills Will be In-Demand

As more accounting firms expand their services, accountants will benefit from more diverse skill sets. Furthermore, because the accounting industry is not immune from the labor shortage, a looming deficit of accounting professionals will also find firms casting wider nets for talent.  

Ultimately, the ability to offer more services is a win-win for accounting firms and clients alike. “An old-time person in the accounting profession always told me, which is true, that you don’t grow your business by the number of partners or employees you have. Instead, you grow your business by offering more services to your clients,” proposes Savignano. 

AI and Automation will Advance the Industry

The words “AI” and “automation” strike fear in the hearts of many people due to concerns about machines replacing people. While it’s true that automation may eliminate some kinds of jobs. Savignano stresses the tremendous potential of technology for improving the accounting industry.

As a numbers-heavy industry, accounting is ripe for AI-enabled processes that will save time and money by eliminating routine tasks. In addition to improving efficiency, this is also associated with enhanced data accuracy across tasks like preparing financial reports, identifying fraudulent transactions, and analyzing documents.

And while there’s no substitute for the human touch, AI can enhance your capacity to deliver it. For example, customer management software can help accountants meet clients exactly where they are to create connections, nurture relationships, and build loyalty. 

The accounting industry will also undergo technological disruption due to developments like blockchain technology, data analytics, and forecasting. As with AI, the goal is not to replace human-client interactions but to improve upon them. 

New Pricing Models Will Grow In Popularity

Given the widening scope of the nature of accounting, selling specific services at particular price points is becoming a less popular strategy. Instead, many firms are adopting value-based pricing, which allows them to provide services to meet specific needs as they emerge without a la carte pricing arrangements. 

Value-based pricing also leads to fewer unpleasant surprises and better transparency—one of the things today’s consumers prize most. 

While it’s impossible to predict the future, John Savignano CPA is uniquely qualified to offer insights on what’s ahead thanks to his years of experience in the finance and accounting sector. Familiarizing yourself with these accounting trends, understanding what they mean, and planning appropriately for them can help today’s accounting professionals not only overcome impending obstacles but reposition them as opportunities. 

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Felix Yim

Tech Expert

Felix is the founder of Society of Speed, an automotive journal covering the unique lifestyle of supercar owners. Alongside automotive journalism, Felix recently graduated from university with a finance degree and enjoys helping students and other young founders grow their projects. 

   
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