Top Accounting Trends for 2024 and Beyond

The accounting profession is constantly evolving. From new tax laws and innovative technologies to the impact of AI and security breaches, accounting professionals need to stay current to succeed in the field. We reached out to Ricardo Buenrostro, an instructor in UC Davis Continuing and Professional Education’s Accounting Program with over a decade of experience working in finance at UC Davis, for his take on top accounting trends for 2024 and beyond. Here's what he had to say.

1. Digital Transformation and Automation

The increased use of technology and automation in tax processes is a notable trend. Tax professionals leverage advanced software for data analysis, compliance and reporting. Adoption of artificial intelligence and machine learning is streamlining routine tasks and allowing professionals to focus on more complex aspects of tax planning.

2. Remote Work and Collaboration Tools

The COVID-19 pandemic has accelerated the acceptance of remote work in various industries, including taxation. Professionals are utilizing virtual collaboration tools, cloud-based platforms and secure communication channels to facilitate remote work and maintain client interactions. This creates a challenging environment for employers and employees alike as they navigate multi-state taxation and potential reciprocity agreements.

3. International Taxation Challenges

International tax regulations are becoming more complex as governments seek to address issues related to base erosion and profit shifting (BEPS). Multinational corporations face challenges in navigating the intricate web of international tax laws. Tax professionals need to be well versed in cross-border tax issues.

4. Cryptocurrency Taxation

With the increasing popularity of cryptocurrencies, tax authorities are paying more attention to the taxation of digital assets. Professionals need to be knowledgeable about the tax treatment of cryptocurrencies and guide clients in complying with reporting requirements.

5. Data Security and Privacy Concerns

As tax professionals handle sensitive financial information, data security and privacy are paramount. Adhering to cybersecurity best practices and staying informed about data protection regulations is essential to safeguard client information. Tax preparers also must possess a Written Information Security Plan (WISP). This becomes more challenging every year as our digital footprint grows and identity fraud becomes widespread throughout the country.

6. Green Tax Incentives

Governments are introducing tax incentives to encourage environmentally friendly practices. Tax professionals may need to advise clients on taking advantage of green tax credits and deductions associated with sustainable business activities. Examples of these are the Solar and EV credit iterations we’ve been seeing throughout the years.

7. Increased Scrutiny on Tax Planning Strategies

Tax planning strategies are facing heightened scrutiny from tax authorities. There is a trend toward increased transparency, with regulators focusing on aggressive tax planning practices. Professionals should ensure their strategies align with legal and ethical standards. This can be seen in the recent implementation of the Beneficial Ownership Information (BOI) reporting requirement.

About the Author

Ricardo Buenrostro works in the UC Davis Finance Department as the director of Tax, Compliance and Controls. He is skilled in tax research, tax preparation, financial aid administration, supervisory management and budget management. Instructor in the Accounting Program at UC Davis CPE.

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