5 accounting trends for 2026

Artificial intelligence, e-invoicing, ESG reporting, cloud solutions, and cybersecurity are the 5 most relevant trends in accounting for 2026. These are not new buzzwords, yet this year we have reached a point where we must decisively choose whether to keep pace with the times or wait until these changes begin to impact our business.

Every year there are trends that are relevant only for a short time, but true trends are a force that drives an entire field forward. In accounting, changes often begin with shifts in legislation or European Union directives that affect business. However, technology is now also introducing tangible waves of change that are altering the way we work. Let us look at the trends that will drive the accounting sector this year and influence the years to come.

1. Integration of Artificial Intelligence (AI)

Artificial intelligence is entering the accounting field and is capable of doing more and more—not just reading data and automatically placing it into the necessary fields. Its algorithms can analyze, make data-driven decisions, and perform a whole range of tasks. Data from the "Digital Portrait of a Manager 2025" study showed that the use of AI has become the most in-demand skill in workplaces in Latvia, with 24.8% of all respondents having already mastered it. Furthermore, 33.9% of respondents expressed a desire to learn or improve these specific digital skills in the coming years.

How will this change the daily routine of accounting?

• Anomaly detection: AI scans thousands of transactions in real-time, instantly identifying duplicate payments or suspicious transactions that do not align.
• Smart forecasting: based on a company's historical data and market trends, AI can forecast cash flow with 95% accuracy.
• Fewer errors: according to Gartner research, the integration of AI in finance departments reduces operational errors by an average of 30%.

Artificial intelligence in accounting will allow accountants to dedicate more time to strategic tasks and take on more significant roles within companies, such as financial managers and similar positions.

Advice: Companies and their accountants must begin to evaluate the AI capacity of their existing software. If a system still requires manual data entry and does not support process automation, it may impact competitiveness in the long term—especially for accounting firms, where clients have high expectations for service.

2. E-invoicing

The digitalization and automation of accounting are also continuing at the national and European levels. The greatest emphasis is on promoting transparency and tax compliance. This is precisely why the European Commission developed the ViDA initiative, which envisions that the entire European Union will transition to a unified digital tax reporting system by 2030.

One way to achieve this is by implementing e-invoicing. In Latvia, e-invoices have been mandatory for B2G transactions since January 1, 2025. Furthermore, they will become mandatory for B2B transactions starting January 1, 2028. The "Digital Portrait of a Manager 2025" study revealed that 18.4% of respondents have already implemented e-invoicing in their companies.

Why start thinking about this now?

• An e-invoice is an invoice in a structured data formatthat is sent and processed electronically, reducing errors. This will allow for process automation, paper savings, faster document retrieval, and more.
• By January 1, 2028, every company must have an e-invoice operator integrated into their accounting or ERP software—a process that should be started early to ensure you select the most suitable solution and become accustomed to the new system.

Tip: Companies should proactively assess their software capabilities and check if they offer integration with e-invoice operators. This will help avoid a situation where you are forced to change your accounting or ERP software at the last minute to comply with legal requirements.

3. ESG Reporting: The New Role of the Accountant

Sustainability is becoming a business priority, especially for large companies subject to various laws and directives. Consequently, ESG (Environmental, Social, and Governance) criteria are gradually becoming a standard part of financial reporting.

How will this affect accounting?

• Supply chain impact:Even small businesses will be asked by their major clients (such as Rimi, IKEA, or Latvenergo) to provide data on their carbon footprint so that these clients can prepare their own sustainability reports.
• Bank financing:PwC data indicates that companies with transparent ESG data receive loans with more favorable interest rates—a significant factor for management.
• The accountant is becoming a "sustainability controller"who tracks not only euros but also kilowatt-hours and tons of emissions.

Tip: Sustainability is a process that does not happen overnight. A company must consciously implement changes across every department and operational step. This also includes employee training. To ensure the accountant can accurately report all necessary data, they must be provided with access to training. This will allow the company to adapt to new sustainability requirements much more easily.

4. Cloud Technologies and SaaS Ecosystems

Technological advancements have enabled many professions to transition to partial or fully remote work. Increasingly, data—including software—is stored online in the cloud. Accounting systems are no exception: clients are gradually shifting from local versions to cloud-based solutions.

Why switch to a cloud-based solution?

• Real-time access: the ability to view your company's financial status on your smartphone, whether you are at a café or anywhere else in the world, at any time.
• Security and updates: legislative changes (such as new VAT rates) are implemented in cloud software automatically, with no fees for version upgrades.
• Integration (API): the ability to connect accounting with inventory management, e-commerce platforms (Shopify, WooCommerce), and bank accounts, ensuring automated data flow.

Tip: Transitioning from a local ecosystem to a cloud-based solution is not instantaneous—it requires time and employee training. Therefore, carefully select a solution that specifically suits your company and plan for at least one year to complete the transition gradually.

5. Cybersecurity – Protecting financial data as a priority

While transitioning to cloud storage offers numerous benefits, it is essential to do so correctly and securely. This is why cybersecurity is becoming an increasingly relevant topic in all fields, especially in accounting, where sensitive data is handled.

What should you pay attention to regarding cybersecurity?

• Deepfake fraud: As AI evolves, cybercriminals have more opportunities to find ways to misappropriate funds. For example, they may use AI to mimic a manager's voice or video to request an urgent payment from an accountant. This is precisely why even stricter internal protocols will be necessary in 2026.
• Data encryption:An IBM report revealed that financial losses from data breaches continue to rise, reaching record highs. This is why special attention must be paid to how data is stored in accounting software and who has access to it.

Tip: To minimize the likelihood of data breaches or cybercriminals successfully obtaining company funds, conduct regular employee training on cyber hygiene. A company may have the most advanced security mechanisms installed, but if employees are not educated, the risk remains high.

What should accounting firms do in 2026?

The year 2026 will not bring entirely new trends to accounting, but rather a continuation of existing ones. While digitalization, cloud solutions, and AI were in their infancy just a few years ago, they have now developed rapidly. To remain competitive and work more efficiently, companies must keep pace with the times in their accounting practices as well. This means:

• Review the functionality and integrations of existing accounting systems.
• Prepare for the implementation of e-invoicing and structured data flows.
• Evaluate AI opportunities and automation potential.
• Strengthen data security and access controls.
• Plan for ESG data collection and reporting integration.

Frequently Asked Questions

When will the use of e-invoices become mandatory in Latvia?

The implementation of e-invoicing in Latvia is taking place in two stages: from January 1, 2025, they are mandatory for business-to-government (B2G) transactions, and from January 1, 2028, e-invoices will become mandatory for all business-to-business (B2B) transactions. It is recommended that companies begin integration early to adapt their ERP or accounting systems.

How can artificial intelligence help reduce accounting errors?

According to research, the integration of AI into financial processes reduces operational errors by an average of 30%. AI algorithms can scan thousands of transactions in real time, identify duplicate invoices and anomalies, and forecast cash flow with up to 95% accuracy, thereby eliminating human error.

Why is it important for small businesses to start tracking ESG (sustainability) data?

Even if the law does not directly require small businesses to prepare ESG reports, they will become necessary for two reasons: first, large clients (supply chain partners) will require data on carbon footprints for their own reporting; second, companies with transparent ESG data may receive bank financing at more favorable interest rates.