Regulatory changes are transforming the role of an accountant from a number cruncher to that of a strategic advisor, as today’s professionals must not only gather data but also analyze it and share insights about the results. Accounting professionals and organizations alike can embrace this development by understanding changing regulatory requirements and addressing them with a robust accounting solution, ensuring they are supporting their accounting team’s transition into a more strategic role.
Changing Tax Policies
Understanding changes in tax policy – whether it’s total tax liability or navigating changing trade and tariff policies – is vital for accounting teams in every industry. Aside from taxes, accounting teams must stay on top of statutory and regulatory changes, as well as keep current on COVID and other stimulus legislation. Anticipated changes in leadership at the Security Exchange Commission are likely to further impact financial reporting requirements and scrutiny. Effectively navigating the tax law changes can free up funds for organizations to weather other challenges ahead. Accurate tax records that are easy to access with accounting software will make a complex tax year more manageable.
Changes in ESG
In addition to constantly changing tax policies, it’s widely expected that there will be new federal regulations pertaining to Environmental, Social, and Corporate Governance (ESG), especially related to financial disclosures for public companies. Professional trade organizations are trying to help accountants prepare for this. November 2020, the Association of International Certified Professional Accountants (AICPA) shared plans for education and resources to help accountants with reporting on and assurance of ESG information. More recently, the AICPA noted that ramping-up ESG reporting, documentation of environmental-focused policies, and increased diversity could affect accounting professionals in the coming year.
Changing Accounting Standards
Finally, new accounting standards are certain to affect accounting professionals. The Financial Accounting Standards Board (FASB) updates accounting standards throughout the year with changes that can affect financial statements and suggestions for how to keep them compliant with Generally Accepted Accounting Principles (GAAP). For instance, in 2021 FASB instituted changes related to asset acquisitions, debt securities, credit losses, leases, variable interest entities, reorganizations, and banking regulation disclosures. While phased implementations of standards have been delayed, they remain on the horizon, and accountants should pay close attention and stay current.
Navigate the changes with Daston’s DCAA-On-Demand SuiteApp for Oracle NetSuite
Investing in the right systems is essential in keeping up with not only recent developments but future ones. Of course, some systems are better equipped for the job than others. Daston’s DCAA-On-Demand SuiteApp for Oracle NetSuite’s cloud-based financial management system offers all the functionality accountants need to adapt to the rapidly changing regulatory landscape. Customers automatically receive biannual updates that help them comply with regulatory changes, making adaptation quick and easy.
So you seek a flexible robust system to assist you in your redefined role as a strategic advisor? Learn how Daston can help! Click HERE to schedule a free consultation today.