Accounting trends in Hong Kong in 2021

Aug 05, 2021
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There is something about Hong Kong that draws people from other countries from all over the globe to register their companies in Hong Kong; so what is it that makes Hong Kong so appealing and such an ideal business place?

The Wall Street Journal and the Heritage Foundation have pointed to Hong Kong as the freest economy in the world. The easy tax system, elite position, established communications, and free distribution of products permit enterprises of all industries to prosper and thrive in the Hong Kong economy.

At the same time, the fast-growing emerging technology like cloud and artificial intelligence are transforming the current and the future of accounting. The growing domination of these innovations is because of rising client demands and the fast rate of transition in the accounting environment. If you wish to harness the strength of these innovations, you must consider the main accounting developments in 2021. Furthermore, you must follow a style of responding to this transition.

Important Accounting Trends in 2021

The most important and popular accounting trends in 2020 are articulated in the blog below.

Automation Technologies

Automation in accounting has heavily improved the productivity of processes and minimized human mistakes. Similarly, it has improved the confidentiality of knowledge to deter theft and litigation. The main changes created by automation include the minimization of manual work, preparation of data to facilitate decision making, and close monitoring of the company’s output in real-time.

The immense number of industry specialists expect that the practice of automation will boost over the coming years. It is because modern accounting automation systems are cost-effective to small and micro-businesses.

Besides that, organizations need to know their performance in real-time to lead up to increasing customer demands and a speedily-changing economy.

Besides, with companies racing to bring digital transformation into their offices, they will also include automated services and more. According to the World Economic Forum, more than 80 percent of business executives are accelerating plans to digitize work processes and introduce new technologies; and 50 percent of employers are planning to accelerate the outsourcing of certain positions in their businesses. Not only that, but we should also expect automation in sectors like cybersecurity initiatives, retail, and so on.

Digital Marketing and Social Media

The year 2020 had a lot of marketers struggling to keep up. It was a year like no other, really, with current events profoundly influencing digital marketing trends. The point is, now is the time for marketers to scrutinize their targets, efficiency indicators, and KPIs closely. Marketers need to be flexible and adapt fresh tactics efficiently and reliably to survive and succeed again. As we have seen at Cardinal in our consumer portfolio, certain brands, organizations, and individuals who can find a way to be flexible in the face of difficulty would be better placed to hang around, work it out, and start looking forward to 2021.

People will still be favored by social media algorithms. It’s time to wake up to this reality and be the first in your business to create a social media strategy that is powered by the voice of your workers, clients, and influencers that is fundamentally different from individuals.

Influencer marketing is frequently associated with a negative connotation, but as I wrote in The Age of Influence, influencer marketing is about welcoming nano influencers and those who already have a brand affinity for you and discover ways to partner and involve individuals who love your business as an integral component of your digital marketing.

In 2021, digital marketing and social media are not only key trends in accounting but must-have tools for all firms. Accounting firms will expand their footprint and impact around the world with these technologies. Based on the geographical position, nature of the market, and company size, you can advertise to a targeted community of customers.

Collaboration and Project Management Technologies

For all organizations that deal with technology, collaboration, and project management technology is proving to be a perfect getaway. Accountants will have to work together within a broad objective and consider the activities and tasks conducted by others. Project management would also simplify the process of plunging a large task into smaller tasks and monitoring their progress in real-time.

Remote Workplace Features and Importance

After the Covid 19 pandemic, remote workplace traits were embraced by many businesses. For some time now, social isolation will remain a part of our lives. Similarly, working from home in 2021 is also a rising trend. Also, a remote work environment enables you to recruit freelancers from all over the world. If you want to explore remote working choices, a cloud-based accounting structure is very important.

In recent years, the adoption of remote work had already been increasing at a rapid pace and the worldwide Covid pandemic lockout restrictions ended up greatly accelerating its adoption with work from home policies set in record time through businesses of all kinds and industries around the world.

We would assume that once Covid is under control in the following months and travel is allowed again without limitations, with businesses now operating remotely or as hybrid organizations in the long term, there is an exponential growth of remote working professionals and the remote working economy, not just with remote job searches but also with businesses recruiting booming over the last few months.

Cloud Computing Technologies

In most industries today, cloud computing is a highly popular technology. Access to accounting services and applications is rapid and simple with cloud technology. It does not require manual installation and maintenance of software, unlike conventional approaches. Also, it can be accessed by most modern computers at any time.

A broad variety of services are provided by cloud-based accounting firms to plan, store, manage, and analyze data. They have a full database kit, project management, invoice management, data processing, machine learning, and tools for artificial intelligence.

Artificial Intelligence and Machine Learning

The market’s buzzing innovations are artificial intelligence and machine learning. Their value peaked in 2020, and in the coming year, we are exempting several more of them. From e-commerce to advanced quantum computing systems, to medical diagnostic systems to consumer electronics and particularly the popular smart assistants, both have already found their space in everything. According to market analyst IDC, the revenue produced by AI is about $156.5 million worldwide, up 12.3 percent from the year 2019. The spectrum of artificial intelligence and machine learning is beyond our thinking, and somehow the researchers have done their hardest to give an idea of what we might expect in 2021 by sharing their few glimpses. Even though its position varies according to the needs of your company. These developments are going to play a significant role in changing our lives in 2021. They would introduce to the table more innovations and open up a fresh door of possibilities.

Conclusion

We have learned the main accounting trends for 2021 from this blog. Similarly, we have also shown how these approaches are enhancing conventional methods of accounting. Also, we have mentioned what the future holds for such innovations.

To help the business experience a much-needed transition, Vita Liberta will provide the best accounting services. Our comprehensive insights and significant experience help us to consider the accounting effect of technology and how it will change in the future. In 2021, we urge you to look at these accounting patterns and firmly advocate that they be implemented.

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