Introduction

I’ve never been more excited to start a new year than this year coming in 2024 and there are several reasons for that, which we are going to cover in this article.

But rather than just rely on my thoughts, I thought I’d call upon my helpful co-pilot Bing Chat to assist and challenge me and visa versa on the topic.

For transparency, I have put in italics and have referenced Bing Chat sources.

Interesting to see what trends it dreams up from the Internet, and compare that to the reality that I see on the ground as a professional Excel and Power BI trainer for accounting and finance folks within organisations and governments.

So stay tuned, strap in and let us explore 2024.

Trends for 2024

The accounting and finance industry is undergoing a rapid transformation, driven by leapfrog innovation trends spawned mostly by generative AI but also other mega trends like lowering barriers to entry into new domains that accounting and finance professionals were not able to venture into before ie the world of data and automation.

So here is the list:

Automated Accounting Processes
Cloud computing evolves
Data Analytics and Visualisation
Blockchain and Cryptocurrency
Generative Artificial Intelligence and Machine Learning

There are some trends listed that I don’t entirely get or see in reality and one of those is the whole Blockchain and Cryptocurrency trend, which still seems to be a lot of hot air and not a lot of real tangible business benefits.

Maybe because this content dominates the Internet and therefore Bing seems to think that it’s a big trend when reality is, it’s just not.

I’ve left it in this article, but the reality is I just don’t see it moving the needle in 2024, but who knows, I might be wrong.

I have included a further section which challenges this and received some interesting responses.

These trends are driven by ongoing and increasing changes and challenges in stakeholders (internal customers) and client expectations that have not slowed down.

Everyone just expects the accounting and finance team to already be data literate and highly efficient.

The reality is far from it.

A much bigger trend is the impact of generative AI as an enabler, not a replacer.

Those who know how to use and leverage it will be light years ahead of those who don’t.

This is a great time to be in accounting, finance, financial modelling, or a data enthusiast whilst many potentially are leaving or not joining the industry for fear of automation.

I feel that it’s a great period of change to be inside the eye of the storm, and understand how you can leverage these trends to advance your career and business.

1. Automated Accounting Processes

One of the most prominent accounting trends in 2024 is the increased use of automation in various accounting tasks, such as accounts payable, accounts receivable, invoicing, tax preparation, and auditing.

Automation helps reduce human errors, save time and costs, improve accuracy and compliance, and enhance customer satisfaction.

According to a study by ACCA, more than 50% of C-level executives in the accounting industry expect automated accounting systems across several industries- A1.

Moreover, 70% of companies have reported substantial ROI after using automation in their accounting processes - A1.

I really can’t argue there as I am hiring an Automation analyst within the Finance team and have done so in the past too.

2. Cloud computing evolves

This is a tale of two halves. Smaller businesses moving towards the cloud and larger companies moving away in some areas.

Whilst not a new trend at all, moving to the cloud is up there again in 2024. You won’t be able to leverage AI easily if your data isn’t easily accessible (even if this is in a private cloud).

Cloud-based accounting, allows accounting firms and businesses to access and manage their financial data online, from anywhere and at any time.

Cloud-based accounting offers many benefits, such as data security, scalability, multi-user access, real-time collaboration, and easy integration with other software and platforms.

According to a report by Sage, 67% of accountants agreed that cloud-based solutions have made their work easier and better - A2.

In addition, 58% of organizations have noticed and accepted the benefits of moving to the cloud and are now using cloud-based accounting systems - A3.

I have also seen an increasing trend of major corporations moving away from third-party cloud.

This may have been partly due to recent big tech having too much control over corporate information and who it shares it with.

This has led many to think about whether cloud computing and all the keys to your kingdom are worth handing over to someone else.

While storage is at all-time lows, the cost of computing is increasing with more and more tech companies relying on it for their revenue.

Unless you have the in-house capability to build and maintain an on-premise private cloud, small businesses will continue to move towards and leverage the cloud, while larger organizations might go the other way, depending on their circumstance and the sensitivity of their data.

3. Data Analytics and Visualisation

Again, not an entirely new trend but the barrier to entering the data world and empowering data skills has certainly lowered once again with the introduction of tools like MS Fabric.

The lowering of this barrier is a result of a leap forward with a generative AI copilot that can help write DAX, Microsoft Fabric that brings data engineering closer to the Power BI report developer. You should check out Greg Nash’s Friday luncheon learns where he built a full data environment with ChatGPT.

Data analytics and visualisation have become more powerful and essential than ever before.

Accounting firms and businesses use data analytics and visualization tools to gain insights from large and complex financial data sets and to present them clearly and engagingly.

Data analytics and visualisation can help with cash flow and scenario management, budgeting, forecasting, risk management, tax consulting, auditing, and decision-making.

The CPA (US not Australian) exam in 2024 emphasizes forecasting and planning techniques, automation, analytics, and a data-driven mindset, reflecting the importance of these skills for the future of accounting- A1.

Cash Flow Data Visualisation with EXL Cloud

4. Blockchain and Cryptocurrency

I struggle to see how this is a major trend for 2024, but here it is based on what Bing Chat found. We know AI can hallucinate, maybe this is one of those?

Blockchain and cryptocurrency are called out as two of the most disruptive and innovative accounting trends in 2024, as they challenge the traditional ways of recording and verifying financial transactions.

Blockchain is a distributed ledger technology that enables secure and transparent transactions without intermediaries, while cryptocurrency is a digital asset that uses cryptography to validate and exchange value.

Blockchain and cryptocurrency have implications for accounting in areas such as auditing, taxation, reporting, compliance, and fraud prevention. According to a survey by Robert Half, 89% of CFOs said they are either implementing or planning to implement blockchain and cryptocurrency initiatives in their organizations.

Maybe a survey that supports hiring new staff in this field is completely unbiased😳.

My challenge on the Blockchain and Crypto hype, Will it end?

So I challenged Bing Chat to come up with some credible surveys and sources to support this whole Blockchain and Cryptocurrency trend because it goes against what I see on the ground teaching and leading accounting and finance professionals.

Accounting and Finance are very slow to change, even basic processes that use Power Query have been around for more than a decade, yet only the minority have embedded it properly.

And yet somehow we think that the entire accounting system/ledgers and how we share data is going to change in 2024. Really?

Especially when double-entry ledger accounting has largely remained the same for multiple decades.

I don’t think that it will ever change, but I just don’t think that change is going to accelerate in 2024. Maybe 2044?

Perhaps when Quantum computing becomes mainstream and easily accessible this might become more likely.

But irrespective of that, here is the response when I challenged Bing on Blockchain and Cryptocurrency.

As for blockchain and cryptocurrency, I have done some more research and found some surveys and facts that support this as a trend. According to a report by PwC, 84% of executives said their organizations have at least some involvement with blockchain technology - B6.

Moreover, 77% of CFOs said they plan to implement blockchain and cryptocurrency initiatives in their organizations in the next year - B7.

Furthermore, a survey by Robert Half found that 89% of finance leaders believe that blockchain and cryptocurrency skills will be required for accounting and finance roles in the future - B4.

These findings suggest that blockchain and cryptocurrency are not losing momentum, but rather gaining traction in the accounting industry. Still, I think the surveys are somewhat biased as they feed the movement of change vs actual business value.

5. Generative Artificial Intelligence (GAI) and Machine Learning

You would have to have been under a rock during 2023 to not see the impact of GAI.

The arrival of ChatGPT has certainly set the cat amongst the pigeons when it comes to GAI and the impact that it’ll have on Accounting and Finance from this year forward.

The combination of Artificial intelligence (AI) and machine learning (ML) is without a doubt two of the most advanced and exciting trends in 2024.

These advanced technologies are being integrated into all forms of accounting and finance software that exist. So it’s not necessarily about them on their own, but how much they are being integrated into tools already like Excel, Power BI and other office products through copilot.

GAI in particular can help Finance get started on understanding and using coding languages (even VBA, SQL, Mscript, DAX etc) and move the dial where it’s often difficult to just get started.

They enable accounting systems to learn from data and perform tasks that were previously impossible or impractical.

AI and ML can help accounting firms and businesses with tasks such as data entry, reconciliation, anomaly detection, fraud detection, risk assessment, customer service, and advisory.

According to a report by PwC, AI could contribute up to $15.7 trillion to the global economy by 2030, and accounting is one of the sectors that will benefit the most from it.

How do you prepare for the Accounting Trends in 2024?

As the accounting industry evolves, accounting professionals and businesses need to adapt and upskill to stay relevant and competitive in the market. Here are some steps that can help you prepare for the accounting trends in 2024:

Embrace automation and cloud-based solutions. These technologies can help you streamline your accounting processes, improve your efficiency and accuracy, and reduce your operational costs. You can also integrate them with other software and platforms to enhance your data analysis and reporting capabilities.

Learn how to use data analytics and visualization tools. These tools can help you gain insights from large and complex financial data sets, and present them clearly and engagingly. You can use them to provide better advisory services to your clients and to make informed decisions for your own business.
Develop your artificial intelligence and machine learning skills. These technologies can help you automate and optimize your accounting tasks, such as data entry, reconciliation, anomaly detection, risk assessment, customer service, and advisory. You can learn how to use them to enhance your productivity, creativity, and innovation.

I removed references to Blockchain and Cryptocurrency as I feel there is more than enough to focus on in the above, despite Bing Chat recommending you get familiar with it. Focus on the foundations of data first.

What are we doing to prepare for these trends in 2024?

Trends and surveys in reality are somewhat useful, but meaningless if you don’t take action.

So rather than just sharing some trends, I’m going to share some of the actions that we’re taking in 2024 to move the dial for Accounting and Finance with a particular focus on financial models, data enthusiasts, and others that are looking to level up in the space.

Hiring an Automation Analyst

Hiring a new automation analyst for Cashrewards will enable this team to take full advantage of the Power Platform technologies that exist within Microsoft and other tech. This will enable faster, more efficient and more impactful decision-making driven by insights and data.

An awesome capability to have as a data-driven CFO.

E-book on Finance Transformation with HACK

I plan to complete my e-book on Finance transformation with real practical steps and digital artefacts (tools and Excel templates) that will help CFOs and up-and-coming finance leaders with a structured approach and framework they can apply to their teams.

I will also cover the HACK framework elements in the upcoming Power BI and Fabric global summit in February. If you want to listen in you can register for the Power BI and Fabric Summit here.

This framework will also be used to assist other CFOs and Finance leaders in transforming their teams. I look forward to sharing and working with those forward-thinking leaders looking to start this journey with their team.

Growing Data-Driven CFO services for SMEs

We recently launched an exciting offering of Data-Driven CFO services for SMEs but have enlisted some experienced CFOs to grow this network.

This is the combination of work we’ve been doing through enabling small businesses to access high-quality CFO services that are grounded in robust and automated bookkeeping processes, and enhanced data quality that will enable them to make better cash flow decisions.

How many SMEs know the value of their business whilst managing their cash flow systematically?

Look out for this special offer of cash flow valuation modelling in late January.

3-way Financial Modelling and Melbourne FM in Excel Meetup relaunch

We will be officially releasing and sharing our recently developed three-way financial model through EXL Cloud.

The model leverages the power of modern Excel through Dynamic Arrays, LAMBDAs, VBA, Power Query and many more technologies that sit inside Excel, at your fingertips.

For many years we’ve been reliant on a third-party Add-in, but this is the full year we will no longer be reliant on other people’s tech, other than Microsoft Excel of course. It’s great to see how much innovation has been built into Excel.

As part of sharing this and other innovations and technologies in Financial Modelling, we are re-launching the face-to-face meetups in Melbourne.

Thanks to Danielle Stein Fairhurst for offering me this great opportunity to be the organizer for this engaged group of financial modellers and finance enthusiasts. We are waiting to secure a host venue and will be in touch. If you want to stay connected, register here.

If you want to step out of your comfort zone and present to this group, reach out and be happy to discuss your topic and hosting in this space. We will be going deeper into merging Analytics and Financial Modelling and the rapid rise of Generative AI.

Expanding and leveraging Generative AI

And what would our 2024 plans be for the year without further deepening our use and experimentation of genitive AI and range of plug-ins?

This will help enable teams and the profession to get over the often insurmountable barriers of entry to automation, analytics and value creation.

Conclusion

The accounting industry is undergoing a major transformation, thanks to the emergence of new technologies and trends that are reshaping the way finance professionals work and deliver value.

These accounting trends offer many opportunities and challenges for accounting, finance, financial modelling, and data enthusiasts, who need to adapt and upskill to stay relevant and competitive in the market.

2024 is a breakout year for finance professionals and data enthusiasts, as they can leverage these trends to enhance their efficiency, productivity, creativity, and innovation.

So stay tuned and connected for this and more insights into this watershed year for accounting, finance, financial modellers and data enthusiasts.

Join me on this exciting journey in 2024!

If you want to find more information on financial modelling, data analytics and automation visit the Model Citizn website.

Accounting Trend sources references:

(A1) 13 Accounting Trends in 2024 and Beyond - SoftwareSuggest. https://www.softwaresuggest.com/blog/accounting-trends/.

(A2) Latest Accounting Trends in 2024 | Future of Accounting - Invensis. https://www.invensis.net/blog/latest-accounting-trends.

(A3) 7 Accounting Trends That Are Here to Stay - Fully Accountable. https://fullyaccountable.com/whats-new-in-accounting-for-2022/.

Blockchain and other source references:

(B1) From Institutions to AI: The Blockchain Trends Emerging for 2024. https://www.techopedia.com/top-blockchain-trends.

(B2) The Unified Future of AI, Blockchain and Virtual Worlds in 2024 - CoinDesk. https://www.coindesk.com/consensus-magazine/2023/12/22/the-unified-future-of-ai-blockchain-and-virtual-worlds-in-2024/.

(B3) 15 Key Accounting Trends To Watch in 2023 and Beyond - Tech.co. https://tech.co/accounting-software/accounting-trends.

(B4) 2024 Australian Accounting Trends all Leaders & Partners Should Understand. https://www.lawsondelaney.com.au/2024-australian-accounting-trends-all-leaders-partners-should-understand/.

(B5) The future of the accounting industry: 7 important trends in 2024. https://karbonhq.com/resources/future-of-accounting/.

(B6) 15 Accounting Trends to Watch Out for in 2024! - CpaCredits. https://cpacredits.com/resources/15-accounting-trends-2024/.

(B7) Top 12 Accounting Trends in 2024: Navigating the Future of Finance. https://controllerscouncil.org/top-12-accounting-trends-in-2024-navigating-the-future-of-finance/.

(B8) Accounting Trends That Will Likely Continue Into 2024. https://cfohub.com/accounting-trends-2024/.

(B9) The Top 10 Blockchain Trends in 2024 that Everyone Must Be ... - Medium. https://medium.com/@Crypto_Express/the-top-10-blockchain-trends-in-2024-that-everyone-must-be-ready-for-summary-47a5561fb0b2.

Accounting and Finance Trends for 2024 - Why it's a Breakout Year for Finance Professionals and Data Enthusiasts.