stay sharp: how to master new accounting standards in 2024.

Change, like that unexpected audit at quarter's end, can be unsettling. But in the dynamic world of accounting, it's also inevitable. This year introduces a series of updates to accounting standards, challenging you to stay informed and agile. Here's a snapshot of what's new:

income taxes (topic 740)

Effective for public companies in annual periods starting after December 15, 2024, this update aims to enhance clarity and consistency in income tax disclosures.

crypto assets (subtopic 350-60)

Applicable to all entities with fiscal years beginning after December 15, 2024, this standard addresses the accounting and disclosure of cryptocurrencies, bringing these assets under the fold of established accounting principles.

segment reporting (topic 280)

Required for all public entities in annual periods beginning after December 15, 2023, this update demands more detailed and meaningful segment disclosures, providing stakeholders with deeper insights into company performance.

embracing change: strategies for adaptation

Adapting to new accounting standards can feel overwhelming, even for those with years of experience. Here are some tips to help your team confidently face these updates:

get more from your current technology

Making the most of the software you already have, from cloud-based accounting tools to AI-driven analytics platforms, is essential to keep up with new accounting standards. Set up regular, informal training sessions. These can be a relaxed way for your team to stay on top of the latest software features and learn how these can help in understanding and applying new rules.

Regularly check how your team is using these tools. Are there features you're not using that could help? Sharing tips and tricks among team members can also be a great way to discover shortcuts or better ways to use the software, especially with new standards in mind.

spark continuous learning

Make it easy and fun for your team to join in on training sessions, workshops and online courses like Continuing Professional Development (CPD). You could also ask team members to present real-world applications of new accounting standards, fostering practical understanding and collaboration.

encourage team collaboration

New accounting standards are an organizational challenge, not the sole problem of your accounting team. If necessary, establish regular cross-departmental meetings and create mixed teams specifically focused on understanding and implementing these changes. Open and frequent communication across accounting, finance and IT functions breaks down silos and creates a pool of shared knowledge and diverse perspectives, crucial for mastering new accounting rules.

plan and implement early

Avoid the last-minute rush by planning and implementing changes well in advance. Early adoption not only gives you a competitive edge but also ensures you have time to iron out any wrinkles. Start by reviewing your current accounting practices and identifying areas that require updates. Develop a phased implementation plan, allowing your team to adjust gradually to the new rules.

tap into external expertise

Consultants can simplify the complexities of new standards for you, tailoring solutions that fit your organization's unique needs. Their guidance through the implementation process can make a big difference in how smoothly your team adapts to the changes.

make change your new normal

Encourage a culture in your organization that sees change as the rule, not the exception. Make it a habit to ask your team for their thoughts and suggestions on adapting to new situations. This feedback is invaluable for tweaking your strategies and makes everyone feel like they're an active part of the change. Don't forget to celebrate your successes too — it's a great way to highlight the benefits of adapting to new accounting standards and keeps everyone motivated.