As businesses prepare for transformative changes by 2025, emerging technologies like blockchain and real-time payment systems are set to redefine the finance and accounting sectors, according to Quadient.
As businesses across various sectors look toward the future, the finance and accounting realm is poised for a transformative evolution by 2025. Quadient, a global automation platform, has articulated several significant predictions that suggest how emerging technologies and shifts in industry practices are set to reshape this landscape.
A primary trend noted by Quadient is the predicted widespread adoption of blockchain technology among finance teams. Sarah-Jayne Martin, Director of Financial Automation at Quadient, asserts that the complexities that have previously hindered blockchain integration are gradually being overcome. Companies are beginning to recognise its advantages beyond the realm of cryptocurrency, specifically in enhancing the accuracy of financial transaction logging, reporting, and analysis. Blockchain’s capability for transparent record-keeping promises to revolutionise areas such as credit risk analysis by allowing instantaneous access to comprehensive transaction histories. Furthermore, the technology’s built-in audit trails may facilitate compliance reporting and regulatory alignment, thereby mitigating risk and improving financial precision in an increasingly competitive environment.
However, challenges loom on the horizon for the accounting profession itself. Martin warns that, unless educational frameworks adapt to current workforce demands, accounting may become a diminishing field. With fewer students enrolling in finance and accounting courses, coupled with an ageing workforce, significant skills gaps are anticipated. The traditional perception of accounting as a secure career path is failing to resonate with younger generations, who increasingly favour roles that are technologically driven and less burdensome. The necessity for prolonged study could deter prospective entrants, urging educational institutions and employers to reconsider their approaches to recruiting and training.
The year 2025 is also expected to bring about a paradigm shift in cash flow management. Companies are anticipated to adopt real-time payment systems, mimicking consumer banking developments. Financial leaders are recognising the importance of instant fund transfers, thus enhancing liquidity throughout the credit-to-cash cycle. As digital invoicing and advanced payment infrastructures gain traction, businesses will prioritise quick payments to strengthen vendor relationships and improve operational efficiency. The convergence of Open Banking and real-time payment networks could establish a new standard in the financial domain, where immediate payments become a fundamental requirement.
Another salient trend highlighted by Quadient is the evolving role of Accounts Receivable (AR) teams. Simon Yaxley, an Accounts Receivable Solutions Consultant at Quadient, predicts that economic pressures will propel AR teams from mere back-end functions to strategic advisory roles within businesses. These teams will increasingly leverage predictive analytics and artificial intelligence to enhance their financial insights, forecasting cash inflows, identifying risks, and suggesting operational improvements. As AR teams gain prominence in decision-making, they will be essential to navigating financial complexities and fostering resilience.
In a complementary shift, Joey Glazer, Director of Sales – SME at Quadient, emphasises the anticipated reliance of Accounts Payable (AP) teams on Open Banking capabilities by 2025. With the demand for accurate and rapid payment solutions escalating, AI-driven tools within Open Banking are expected to enhance transaction verification and analytics. AP departments that effectively integrate these technologies will gain a competitive edge by minimising errors and identifying fraudulent activities early. Conversely, teams that hesitate to adopt these advancements may struggle to keep pace with more agile competitors, underlining the urgency for financial institutions to integrate automated solutions.
These predictions underscore the profound changes on the horizon for the finance and accounting sectors, revealing how emerging technologies and shifting societal expectations are set to redefine business practices in the coming years. The journey toward 2025 is positioned to be a pivotal period for finance teams adapting to these inevitable transformations.
Source: Noah Wire Services
- https://www.globenewswire.com/news-release/2024/11/07/2976340/0/en/Quadient-S-A-2025-Financial-Calendar.html – Provides information on Quadient, a global automation platform, and its financial calendar for 2025, which contextually supports the discussion on the company’s role in financial automation.
- https://www.globenewswire.com/news-release/2024/11/07/2976340/0/en/Quadient-S-A-2025-Financial-Calendar.html – Details Quadient’s involvement in digital and physical business connections, supporting the mention of emerging technologies in finance and accounting.
- https://www.investopedia.com/terms/b/blockchain.asp – Explains blockchain technology, its advantages, and its potential applications beyond cryptocurrency, aligning with the predicted widespread adoption of blockchain in finance teams.
- https://www.accountingtoday.com/news/accounting-profession-faces-skills-gap-and-aging-workforce – Discusses the challenges facing the accounting profession, including skills gaps and an ageing workforce, which is in line with the warnings about the need for educational adaptations.
- https://www.pymnts.com/digital-payments/2023/real-time-payments-adopted-by-more-companies/ – Highlights the trend of companies adopting real-time payment systems, mirroring consumer banking developments and enhancing liquidity in the credit-to-cash cycle.
- https://www.openbanking.org.uk/news/open-banking-and-real-time-payments/ – Explains the convergence of Open Banking and real-time payment networks, which could establish a new standard in the financial domain for immediate payments.
- https://www.financemagnates.com/fintech/news/accounts-receivable-teams-to-play-strategic-role-in-businesses/ – Discusses the evolving role of Accounts Receivable (AR) teams, predicting their shift from back-end functions to strategic advisory roles leveraging predictive analytics and AI.
- https://www.accountingtoday.com/news/accounts-payable-teams-see-increased-reliance-on-open-banking – Emphasizes the anticipated reliance of Accounts Payable (AP) teams on Open Banking capabilities, enhancing transaction verification and analytics with AI-driven tools.
- https://www.cfo.com/accounting/2023/10/accounts-payable-teams-must-adapt-to-new-technologies/ – Highlights the urgency for AP departments to integrate automated solutions to stay competitive and minimize errors and fraudulent activities.
- https://www.forbes.com/sites/forbestechcouncil/2023/09/14/how-emerging-technologies-are-changing-the-future-of-finance/?sh=6b4c5e7b66c3 – Discusses how emerging technologies and shifting societal expectations are set to redefine business practices in finance and accounting, aligning with the overall transformative evolution predicted.
