Accounting Trends to Pay Attention to in 2022

Changes in Tax Policy

With almost 6,000 pages in the last Consolidated Estimates Act, better known as the COVID-19 recovery plan, accountants have their work cut out for them. Adopted shortly before the tax period, it is just the latest in a series of tax policy and regulatory changes, including tax extensions, the deduction of P3 expenditures. Whether it's understanding the total tax liability or adapting to changing trade and tariff policies, understanding tax policy changes is key.

Statutory and Regulatory Compliance

In addition to taxes, accounting and finance teams should be alert to legislative and regulatory changes. Oversight and consideration of regulations, including COVID-19 stimulus legislation. Changes in SEC leadership are likely to affect financial reporting requirements and review.

Environmental, Social and Corporate Governance (ESG)

ESG will be top of mind for companies, and it is generally expected. There will be new federal regulations in the areas related to that, particularly about financial disclosures for public companies. These disclosures may include mandatory disclosure of climate-related financial risks and greenhouse gas emissions in your activities, as well as in your supply chains. In addition, large investors are calling for more diversity, which affects all areas of your business, including finance and accounting. The purpose of professional organizations is to assist accountants in their preparation.

Accounting Standards

Throughout the year, the Financial Accounting Standards Board (FASB) publishes updates to accounting standards on changes that may affect the financial statements and how to make them GAAP compliant. For 2021, there are changes related to asset acquisitions, credit losses, debt obligations, leases, reorganizations and variable interest entities.

Proactive Accounting

Machine learning and RPA are employed to redefine the accounting approach. What has become continuous accounting uses automation and other technologies to integrate tasks that are normally carried out at the end of a period into normal daily activities. But the benefit of continuous bookkeeping is not just less late evenings for your bookkeeping team. Automating repetitive tasks improves the efficiency and integrity of data, freeing up time for your billing software team because errors can be a frequent source of tedious work. Your team may then focus on a culture of continuous improvement by monitoring process efficiency.

Outsourcing

Organizations of all sizes may find some benefit from outsourcing some or all of their financial and accounting functions. Small enterprises outsource accounting to avoid hiring extra staff. Large businesses can outsource some or all of their accounts payable, typically with the goal of saving money. In addition, outsourcing can sometimes give you access to skills, technology and expertise that your business could not easily duplicate at a lower cost by hiring new employees and investing in your own infrastructure.

Accounting Software

2022 will continue to allow accountants to demonstrate their resiliency and critical role in the business. They will adapt to and adopt trends to help them orient and lead their business into the next phase of the business journey.

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