Welcome to the world of accounting in 2023, where the only constant is change. Accounting departments face unprecedented challenges and opportunities with –

• Rapid technological advancements
• Shifting global economic landscapes
• Evolving regulatory frameworks,  

As accounting departments strive to stay ahead in this environment, it’s important for them to stay updated. So what are the challenges and opportunities for accounting departments in 2023? Let’s find out!

Challenges in 2023

1. Cyberattacks

The newly developing digital ecosystem is worrisome. Every organization is now a target in the present digital world. Every firm, big or small, has operations and revenue funnels that might be in danger from a breach.

According to a Deloitte Center for Controllership poll, 34.5% of organizations reported experiencing cyber targets on their accounting and financial data in the last 12 months. Of the 34.5%:

• 22% reported experiencing one such cyber event
• the remainingremaining 12.5% reported more than one instance of a cyber event.

In 2023, the need to protect such sensitive information will only rise. Thus, accounting departments must gear up accordingly.

2. Online collaborations

Working styles constantly shift from offline to online to a hybrid mode. As such, keeping everyone in sync is challenging. And when you are dealing with a company’s financesfinance, you can’t afford to make a mistake.

But there’s always a way around it. In this case, it’s cloud-based software. Cloud-based software is especially helpful because it allows geographically separated teams to collaborate. It also enables them to complete essential financial processes.

3. Environmental, Social, and Corporate Governance (ESG)

A common conversation today is the impact of environmental, social, and governance (ESG) factors on a company’s –

• Strategy
• Operations
• Long-term value

But companies don’t highlight how these changes affect accounting judgments and financial reporting.

The question is: Should a company consider ESG factors when drafting financial statements? The answer is YES.

Accounting firms must understand the details of ESG and check how it impacts various aspects. For instance, impairment of goodwill and indefinite-lived intangible assets and inventories.

Authorities like the Securities and Exchange Commission (SEC) issued several statements in quarter 1 of 2021 highlighting the importance of disclosing ESG to investors and capital markets. 

4. Diversified skills

With the rise of digital bookkeeping services, the ability to rely only on conventional memorized accounting systems rules is no longer adequate. It is difficult for accounting businesses to identify qualified candidates with technical and accounting expertise at the present time. That being said, it’s challenging to find a reliable employee who is also adept at utilizing technology and following strict accounting protocols.

The ability to use predictive analytics and other cutting-edge features is invaluable in the modern business world. Thus companies must provide their accounting team with access to the latest technological advancements.

5. Payroll

There may soon be new difficulties with payroll due to shifting federal and state requirements. Payroll administrators now have a substantial challenge in coordinating withholdings for employees located in many locations. Due to the difficulty in identifying the principal work location, remote employment has complicated the administration of state income taxes.

Payroll automation is a great option to think about if you haven’t already. Payroll processing is simplified by cloud-based solutions, which also provide the following:

• Multi-jurisdictional support for taxes and forms

• Direct deposit,

• Assistance with calculating wages, deductions, business contributions, taxes, and paid time off.

Opportunities in 2023

1. Enhancing capacity for future

Staffing shortages and other labor market issues that businesses are now dealing with may be seen as catalysts for accelerating the adoption of exciting new technology-based solutions that are becoming more and more important to companies.

Accounting departments may want to explore automation, change systems, or outsource certain parts of the process. Yet sometimes, businesses just lack the internal resources to handle certain difficulties. Companies may gain from working with a third party to navigate the ups and downs of the accounting burden, react to sporadic problems, or find and then implement possibilities for automation.

2. Departmental upskilling

Because of new technology and the rise of data analytics, technical accounting and tax expertise is no longer as crucial as it was one or two decades ago.

This indicates that, in contrast to other professions, the accounting industry will need new abilities beyond only technological and data management to remain competitive.

Companies can identify these skills via forecasting or using online platforms like O*Net Online to identify the newer competencies and invest in training their employees to learn or enhance these competencies. Because you may allow technology to do most of it but not all of it. A skilled workforce will continue to be crucial to your business’s success.

Wrapping up

Accounting departments in 2023 face a wide range of challenges and opportunities. Digital transformation, regulatory changes, and environmental and social concerns are just a few of the areas where accounting departments can play a key role in providing valuable insights and guidance to businesses.

At the same time, accounting departments will need to navigate complex and evolving regulatory frameworks, adopt new technologies, and enhance their cybersecurity measures.

By staying ahead of these challenges and leveraging emerging opportunities, accounting departments can position themselves as strategic partners in driving business success in the years ahead.

We are optimistic that after reading this blog you are aware of the challenges and opportunities in 2023 for accounting departments. But if you still need help steering the way, GJM & Co. is always here to help.

Our expert accountants will help you understand the future of accounting activities. We can also help you manage your accounts and other related activities such as bookkeeping, payroll, sales tax, income tax filings, preparing profit and loss statements and balance sheets, and more.

Should you have any queries or need consultation, Schedule a Call today or write to us at info@gjmco.in.