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It is always said to expect the unexpected. This is true for the business world as well. The finance and accounting sector is undergoing major changes these days, and its aftermath is leading the industry into a new set of business challenges. Along with these challenges, there is also uncertainty prevailing on the political front, the economic forums and the technological world, which offer both opportunities and threats to firms operating in this industry.

Keeping all of this in mind, we have mentioned some of the leading challenges that the industry and the business processes are facing these days.

Dynamic Technological Advancements

With the introduction of Artificial Intelligence (AI), cloud computing and optical character recognition solutions in business processes, it has become manageable for analysts and accountants to deal with enormous amounts of data and numbers easily.

Solutions are helping the workforce greatly increase productivity, efficiency, and accuracy of critical financial analysis. However, it also poses a major challenge to companies to keep up with the latest advancements in technology. Technology requires frequent costly upgrades, especially if a company wants to remain competitive and continue to meet client expectations.

Risk of Cyber Crime

Cybercrime in the field of finance and accountancy is quite common, since accountants hold a large amount of sensitive and confidential financial data. This data is accessible through IT systems and thus is exposed to hackers.

The consequences of a cyberattack can be devastating for both the accountant firm and its clients. This is why you need to ensure that you have original and authentic security software installed in your systems to deal with this issue. You should also keep updating your IT security software and controls with the introduction of every new edition and also keep providing cyber awareness related training to your staff.

Retaining Talented Workforce

Employee turnover has increased in the past few years because of the race for talent these days. Opting for places where you are able to perform up to your full potential and where your hard work is recognized is what everybody wants. This is why talent acquisition is given equal importance by both large and small firms. Employees that are an asset valuable for the company must be retained.

Demand for Value-Added Services

Since the technology used in the accounting and business world is constantly updating, the role of an accountant has also evolved to be that of a business advisor. If you keep yourself and your firm aware of the new trends in technology that would be beneficial for use in your firm, then only you’d be able to offer value-added services to your clients. This would include ensuring faster response time to client queries, sophisticated data analysis and forecasting, and lowering turnaround time for project completion.

Issues in Succession Planning

This is one of the major challenges as planning for succession in a timely and rational way will ensure the smooth running of your company today and in the future. Hence, we suggest you put as much time and effort to this challenge and develop a well-thought-out plan for the next generation leadership on a fair basis in order to gain the necessary trust from your colleagues and employees.