{"id":4855,"date":"2019-02-06T14:25:07","date_gmt":"2019-02-06T14:25:07","guid":{"rendered":"https:\/\/www.method.me\/blog\/?p=4593"},"modified":"2024-01-30T10:54:01","modified_gmt":"2024-01-30T15:54:01","slug":"accounting-trends-international-business","status":"publish","type":"post","link":"https:\/\/www.method.me\/blog\/accounting-trends-international-business\/","title":{"rendered":"Business Going Global: 5 International Business Trends for Accountants to Watch"},"content":{"rendered":"\n

The business environment is becoming increasingly globalized. As 2019 gets underway, there are a number of international trends changing the marketplace and presenting some challenges for conducting business on the world stage. <\/p>\n\n\n\n

Savvy accountants will stay focused on these trends and ensure their company or client business properly understands the cross-border implications they’re facing. Here are five key areas for accountants to keep an eye on.<\/p>\n\n\n\n

1. Technology<\/strong><\/h2>\n\n\n\n

Technology continues to transform the global business marketplace, and one of the big trends in 2018 was blockchain and cryptocurrencies. <\/p>\n\n\n\n

The accounting industry is playing a role in turning these technologies into business tools. The Big Four accounting firms, for example, are at the forefront of making blockchain work. Together the four firms share a distributed, highly secure network where participants can see and update information in real time. <\/p>\n\n\n\n

It\u2019s easy to see why these technologies are generating such interest. The benefits are widespread: greater transparency and security, along with enhanced accuracy, real-time collaboration, and faster results. <\/p>\n\n\n\n

When it comes to cryptocurrencies, some accounting firms are taking steps to differentiate themselves by infusing their practices with expertise. Sure, Bitcoin values dwindled in 2018, but many believe cryptocurrencies have plenty of fight left. Whatever the future holds for cryptocurrencies, it behooves every accounting professional to understand these commodities and how they work.  <\/p>\n\n\n\n

Indeed, accountants and tax professionals who familiarize themselves with blockchain, cryptocurrencies, and related tax regulations may hack into a niche practice area. Now is the time to start learning. <\/p>\n\n\n\n

2. Cybersecurity<\/strong><\/h2>\n\n\n\n

In its 2018 Finance Trends Survey Report<\/a>, global consulting firm Protiviti found that 71% of respondents and 75% of CFOs identified cybersecurity as one of their biggest concerns for 2019. Similarly, in a 2017 survey of 183 small accounting practices, almost two-thirds<\/a> said they were concerned about data security in the cloud. Many respondents also noted that their firms do not enforce basic cybersecurity measures such as two-factor authentication and requiring strong passwords.<\/p>\n\n\n\n

These concerns are only going to get bigger as accounting firms handle commercial, financial and personal data sets that are growing in complexity, volume and sensitivity. And with much of that data being held in cloud accounting software, there is a huge opportunity for better cybersecurity education and enforcement. <\/p>\n\n\n\n

3. Data privacy<\/strong><\/h2>\n\n\n\n

A related concern among CFOs and financial leaders is data privacy.  <\/p>\n\n\n\n

Their concerns are justified, as 2018 saw a significant number of high-profile data breaches. In April, luxury department stores Saks Fifth Avenue and Lord & Taylor reported five million records breached. Both retailers faced legal battles over the incidents.  <\/p>\n\n\n\n

While accounting firms must take precautions to protect the data they hold, accountants must also understand the regulatory side of this issue, including the new regulations introduced by the European Union (EU) and China. <\/p>\n\n\n\n

The EU\u2019s General Data Protection Regulation<\/a> (GDPR) took effect in 2018 and the rule casts a wide net. A company needn\u2019t be located in the EU to be affected by the law. If you\u2019re holding data on an EU individual, including a customer, prospect, employee or partner, then you must comply with the regulation.<\/p>\n\n\n\n

At the same time, the China Internet Security Law, commonly called \u201cthe Cybersecurity Law,\u201d establishes a broad framework of nearly 300 national standards ranging from information and communications technology (ICT) services to software, routers, switches, and firewalls. Client companies with any type of presence in China are almost certainly affected by the rule. <\/p>\n\n\n\n

Looking ahead, California\u2019s draft Consumer Privacy Act (CPA) is scheduled to take effect in 2020; accounting professionals would be wise to look into the implications of this act in the coming months. <\/p>\n\n\n\n

4. Data management<\/strong><\/h2>\n\n\n\n

Artificial intelligence (AI) and analytics are disruptive trends in all industries. In the accounting field, there\u2019s even talk of robo-accountants displacing CPAs. <\/p>\n\n\n\n

As we move into 2019 and beyond, there will be pressure on accountants to get a handle on the science of big data. What can big data analytics tell us about trends, practices, markets, and strategies? <\/p>\n\n\n\n

Accounting professionals who know how to collect, mine and organize data will have seriously attractive services to offer their clients. Consider adding a new technology tool to your firm. Some commercially available software products include: <\/p>\n\n\n\n