Accounting Challenges to Look Out for this 2025

As the accounting industry is getting more and more complex each year, it's no surprise that companies are finding ways to keep up in 2025, from adapting to new technology to dealing with changes in tax rules. 

In this blog, we'll discuss the most common challenges accountants face today and look at how organizations can overcome them while maximizing the opportunities ahead. 

Related: 4 Common Challenges Faced by Corporate Accounting Firm Owners Today 

What are the Challenges Faced by Accounting Industry Today 

Below are some of the common problems that the industry is facing today: 

1. Finding Skilled Professionals 

a. Hiring the Right Talent 

The demand for accountants with expertise in both traditional accounting practices and modern technologies has grown significantly. The adoption of cloud-based platforms and data-driven decision-making tools means organizations now seek individuals who can blend accounting knowledge with tech-savviness. However, finding talent that meets this dual demand remains a pressing challenge. 

b. Keeping Up with Skill Development 

There is pressure among accountants to upgrade their skillset. As accounting trends lean heavily on automation and analytics, professionals are under pressure to acquire new skills.  

To stay relevant, accountants need to upskill in areas like data analysis, robotic process automation (RPA), and artificial intelligence (AI), as the demand for these skills continues to grow exponentially.  

In addition, soft skills, such as communication, adaptability, and problem-solving are as important as technical abilities. But given the fast pace of accounting’s digitalization, accountants need to prepare themselves for the future that may not be too far ahead to be able to perform these tasks effectively.   

 2. Operational Challenges

a. Automation

The proliferation of automation gave birth to technology revolutionizing the industry: cloud-based accounting software, robotic accounting, artificial intelligence, and blockchain technologies, among others. They make bookkeeping easier, streamlined, and faster than manual processes.  

Although automation comes with a full-suite of benefits, they also bring about a sense of threat to the accounting profession itself. Yes, automation changes the accounting landscape but as it advances, they also reshape the roles and functions of the accountants.

Instead of working side-by-side with technology, these professionals are threatened to soon be replaced by these machines. Needless to say, their relevance can possibly plummet depending on the advancement of automation.  

b. Cybersecurity Concerns

As organizations increasingly rely on cloud accounting, the risk of cyberattacks and data breaches grows. While cloud platforms offer convenient real-time updates and collaboration, they also require robust security measures to protect sensitive financial information. 

To mitigate cybersecurity risks, organization should: 

• Implement multi-layered security protocols. 

• Train employees to identify and avoid potential security threats. 

• Regularly update systems and software. 

• Have a dedicated IT team or work with IT specialists to safeguard financial data.
   

Read: 5 Proven Ways to Protect Your Firm from Cyberattack 

3. Industry Challenges

a. Changing tax/accounting laws

In the US, the Financial Accounting Standards Board (FASB) is in charge of the reporting standard across business and nonprofit organizations. This governing agency functions as an implementer of the regulations in accounting and makes the changes deemed necessary. 

When tax laws and rules are modified, the burden of adjusting goes to the accounting firms and bookkeepers. While the basic principles of bookkeeping remain, the laws passed makes them complex over time. Conformity then becomes a challenge, especially that firms handle clients from different countries.  

Key Trends in Accounting for 2025 

While the challenges outlined above may seem daunting, they also present significant opportunities. As we look ahead to 2025, here are some key accounting trends set to shape the industry: 

Increased Use of AI 

Like any other industry, cutting-edge tools such as AI in accounting are expected to see significant growth by 2025. Not only is AI helpful for accountants in automating repetitive tasks, but it also aids in spotting fraud and errors more easily. 

The Push for Sustainability Reporting 

Another thing that firms and professionals need to keep in mind is that there is a growing trend emphasizing environmental, social, and governance (ESG) reporting. Stakeholders now expect organizations to disclose their sustainability efforts alongside financial performance. At the same time, investors are increasingly looking for companies that are socially responsible. 

How Organizations Can Overcome Accounting Challenges? 

Overcoming the above-mentioned challenges requires a proactive approach. Here are several strategies you can implement: 

1. Invest in Training

One way to overcome challenges is by training and encouraging your employees to stay up to date with the latest tools and regulations. Doing this, not only fast-tracks the professional growth of your staff but also helps your organization to stay ahead of the curve. 

2. Invest in Technology 

Another way to overcome challenges is by investing in technology. By doing so, you can automate many of the tasks that are currently done manually. This will save time and money for your organization while also improving the quality of their work. 

3. Strengthen Cybersecurity Measures

You must also continue to exert more efforts in  strengthening your data security measures. This is especially important if you work in a field that deals with sensitive information. By doing so, you can protect your organization from data breaches and other cyber threats. It also enhances your organization's reputation as a trusted and secure entity. 

4. Explore Outsourcing

If you have plenty of things on your plate, then it might be the perfect time to consider outsourcing, particularly in the Philippines. Not only is outsourcing a cost-effective solution, but it also allows you to focus on your core business. By outsourcing, you can free up more time and resources, allowing you to concentrate on growing your organization. 

Read Next: A Comprehensive Guide to Accounting Outsourcing Services 
 

Let’s be partners for growth 

If you’re looking for a trusted accountant in managing and overcoming these issues, here’s where we come in. D&V Philippines offers high-end assistance to CFOs like you and helps drive better business decisions. Get our Premium CFO Solutions today and know how we can help drive your business forward. 

This post was first published on 05 February 2021 and edited on 03 January 2025 for relevancy and comprehensiveness. Edited by: Angelica Garcia