2023 Accounting Trends for Creative Agencies in New Zealand & Australia
As a finance manager in the creative agency landscape of New Zealand and Australia, it's crucial to stay on top of the latest trends. Doing so ensures your team remains competitive, streamlines financial management processes, and drives your agency toward growth and stability. In this blog post, we'll explore the top 9 accounting trends for 2023 that can help you overcome challenges and achieve your goals while providing relevant regional statistics to inform your decision-making.
1. Embracing Diversity in the Accounting Industry
Diversity in the workplace fosters innovation and better decision-making — for example, 36% variation in profit margins when their leaders come from different backgrounds (top 25%) compared to those in the lowest quartile. In addition, promoting diversity within your financial department allows you to tap into a broader range of perspectives, ultimately leading to more innovative and effective financial strategies.
The Importance of Mentorship and Training Programs
Consider implementing mentorship and training programs to cultivate diversity and inclusion within your financial team. Such initiatives can help your employees from various backgrounds develop essential skills, broaden their knowledge, and improve their confidence. Recent data shows that 52% of Australians participated in on-the-job training in the last twelve months, indicating that organisations prioritise workplace training and development.
By investing in the growth of a diverse team, you'll strengthen your agency's financial capabilities. Additionally, supporting long-term success for your employees leads to diverse perspectives and innovative problem-solving in an inclusive workplace.
2. Understanding Business Processes and Technology
In an ever-changing industry, staying informed about new business processes, automation, and data analysis techniques is essential. Keeping up-to-date with current technological advancements will help you identify potential growth opportunities and maintain a stable financial path for your agency.
The Increasing Adoption of Automation in Accounting
At Pegasus Systems, we understand the challenges finance teams face with manual data entry and performing time-consuming in Excel. By automating processes such as approval workflows, journal entries, bank reconciliation, and accurate job costing and budget forecasts, our agency management software harnesses the power of streamlined workflows, enhancing team communication and freeing time to focus on more strategic initiatives.
3. The Advantage of Outsourcing Finance Assistance for Agencies
In 2023, outsourcing finance assistance has become popular among creative agencies. By leveraging externally, managers can optimise their financial operations, reduce workload, and focus on strategic initiatives to drive business growth.
Pegasus Systems’ Comprehensive Finance Assistance Service
Pegasus Systems offers tailored finance assistance services backed by a professional team with deep agency finance experience and expert knowledge. Our customisable services cover various aspects of financial management.
By outsourcing finance assistance to Pegasus Systems, accounting teams can ensure their agency's financial tasks are handled efficiently while benefiting from expert guidance on streamlining financial workflows and optimising finance operations. This approach allows creative agencies to stay competitive, maintain compliance, and effectively manage their financial processes, even during peak periods of activity.
4. Customisable Financial Dashboards for Agencies
In 2023, accounting software will increasingly focus on offering customisable financial dashboards for agencies. As a result, finance professionals can monitor vital financial metrics tailored to their agency's needs, enhancing strategic planning and collaboration. For example, a study in 2020 shows that 26% of companies that use data visualisation tools report significant improvements in their decision-making processes.
Visualising Agency Financial Health
Personalised dashboards provide a visual representation of the agency's financial health and performance, helping to pinpoint potential opportunities for growth and streamlining operations. As a result, businesses that invest in data visualisation are more likely to achieve revenue growth than those that do not. However, ready-made dashboards with set designs and metrics are less likely to meet an agency’s unique financial needs and processes. This drawback can make it difficult for the company to improve its economic success.
5. SaaS-based Accounting Solutions for Agency Finance Teams
Software as a Service (SaaS) accounting systems are becoming increasingly popular among finance managers in creative agencies. These solutions offer real-time data access, reduced IT costs, and improved team collaboration.
Embracing SaaS-based accounting software can help finance managers streamline operations, improve decision-making, and ensure audit compliance. These tools also enable better communication between finance teams and other departments within the agency, enhancing overall efficiency.
Enhancing Agency Finance with Flexible and Scalable Solutions
SaaS accounting solutions are highly scalable, allowing creative agencies to add or remove features as needed to accommodate their evolving needs without requiring a dedicated internal support and IT team. Pegasus Systems offers this flexibility, helping finance teams tailor their financial management systems to the unique requirements of their agency.
Accounting software is increasingly popular among creative agencies for streamlining operations and making data-driven decisions. Finance departments that stay ahead of the curve can drive their organisations towards success in a competitive market.
6. Leveraging Data Analytics in Financial Decision-Making
Data analytics can help agencies uncover valuable insights, identify trends, and make data-driven decisions. In addition, by leveraging data analytics tools and techniques, you can empower your team to focus on strategic tasks and improves communication across the agency.
Optimising Financial Reporting, Forecasting, and Compliance with Data Analytics
Data analytics can significantly improve financial reporting and forecasting accuracy and efficiency while streamlining compliance and risk management. By automating data analysis and visualisation, finance managers can quickly identify trends, risks, and opportunities, allowing for proactive decision-making and better alignment with the agency's objectives. Additionally, data analytics tools can monitor financial transactions and identify anomalies, ensuring the agency adheres to regulatory requirements and mitigates potential risks.
7. Cybersecurity and Protecting Sensitive Data
Cybersecurity becomes a top priority as financial teams increasingly rely on digital solutions. In 2021, CERT NZ reported a 65% increase in cyber security incidents. Implementing strong security measures protects sensitive financial data and ensures the safety of your agency's information.
In light of Scams Week 2022, an initiative by the Australian Competition & Consumer Commission (ACCC) to raise awareness about scammers, it is essential to heed recent cautionary tales. The data breaches experienced by Optus and Medibank serve as a crucial reminder to organisations with sensitive data exposed through their public web apps, mobile apps, and APIs.
Protect your agency from incidents like these by proactively addressing cybersecurity risks. So you can secure your valuable data and maintain the trust of clients and stakeholders, safeguarding your agency from potential threats.
Cybersecurity Best Practices for Finance Teams
To safeguard your agency's financial data, it's crucial to establish robust cybersecurity protocols. This includes training employees on safe online practices, regularly updating software and applications, and implementing multi-factor authentication (MFA).
8. Adopting Remote Work
Remote work is here to stay, and adapting to this new normal is crucial for success. A 2021 Microsoft Work Trend Index report found that 70% of workers surveyed want flexible remote work options to continue. By implementing best practices and leveraging remote work tools, your financial team can maintain productivity and foster better communication across the agency.
The Role of Virtual Collaboration Tools in Financial Teams
Virtual collaboration tools like video conferencing platforms, project management software, and file-sharing solutions are essential for remote work success. By investing in these tools and training your team to use them effectively, you can facilitate seamless communication, enhance teamwork, and ensure your agency's financial processes remain efficient and agile.
9. Staying Current with Evolving Regulations and Standards
The financial landscape for creative agencies in New Zealand and Australia continuously evolves, with new tax laws and accounting standards affecting how agencies operate. These changes can significantly impact your agency's financial reporting, compliance, and health.
Understanding Key Tax Considerations for Agencies in New Zealand
In New Zealand, creative agencies must navigate various tax laws, including the Goods and Services Tax (GST), Fringe Benefit Tax (FBT) on non-cash employee benefits, and the corporate income tax rate. Additionally, they should stay informed about employment-related tax changes, such as PAYE rates, KiwiServer, and leave entitlements, which can impact payroll costs and tax obligations.
Monitoring Changes in Australian Tax Laws and Regulations
Tax laws and regulations in Australia are also constantly changing. Closely monitoring these changes to ensure your agency's tax strategies are critical to remaining compliant and ensuring your efforts remain current and effective. Staying informed about tax updates, such as those related to the Australian Taxation Office (ATO) rulings, GST, and Single Touch Payroll (STP), can also help identify potential tax savings and risk mitigation opportunities.
Keeping Up with Australian Accounting Standards Updates
Australian Accounting Standards, which are based on the International Financial Reporting Standards (IFRS) and set by the Australian Accounting Standards Board (AASB), are continually updated to reflect changes in the business environment and financial reporting requirements. Stay informed about these updates to maintain accurate and compliant financial records, enhancing stakeholder trust and facilitating sound choices.
Embracing 2023 Accounting Trends for Agency Finance Manager's Success
In conclusion, staying ahead of the curve by embracing the latest accounting trends in 2023 is essential for agencies’ finance managers. Adopting advanced technologies such as cloud-based accounting solutions and data analytics allows you to streamline financial management processes, enhance decision-making, and create a more efficient and competitive agency. Pegasus Systems offers a financial management solution tailored for agencies that provides real-time insights, drives business efficiency, and frees up time for creative work. Leveraging tools like Pegasus Systems ensures your agency remains agile, efficient, and prepared for the ever-changing financial landscape.