Does Accounting Have A Future?

It is common knowledge that the field of accounting is seeing rapid evolution. Some individuals question whether or not accounting has a future with the introduction of new forms of technology and automation into the industry.

In this article, we'll take a look at the problems that accountants have to deal with in the modern era, as well as investigate whether or not the profession is in danger of being extinct. We will also address the steps that accountants should take to maintain their competitive edge and ensure the continued success of their careers. So, does the field of accounting have a place in the future? Let's find out!

What kinds of things spring to mind when you contemplate the years to come? The majority of people currently live in a time when technological advances have made everything brand new and distinctive. But what if there was another industry that was undergoing radical transformation and necessitating the development of new skills?

It's possible that accounting is that field. Accounting is seeing more rapid change than it ever has previously as a result of technological advancements.

Because of this, accountants need to ensure that they are ready for the upcoming developments. So, what does the future hold for accounting? The answer to this question is unequivocally yes; however, this is only true if accountants are eager to learn new skills and remain current with industry developments. Do not allow the prospect of the future discourage you from pursuing a career in accounting; rather, stay one step ahead of your competition, and you will be successful.

How Will Digital Transformation Affect Accountants in the Future of Accounting?

Alteration is the one and only genuine constant in both life and the economic world. Professionals in every sector are being forced to contend with significant shifts, many of which are a direct result of the development of new technologies. These shifts range from the mitigation of previously unheard-of business disruptors to the adaptation of new operational paradigms.

There is no exemption made for accounting. The profession now encompasses a much wider range of activities than simply bookkeeping and payroll processing, and along with its companion, procurement, it is playing an increasingly critical role for organisations that plan ahead. Although there are those who believe that accounting will have a bleak future in the increasingly digital world of the future, technologies such as cloud-based data management, process automation, and advanced analytics are actually poised to elevate accountants in novel and empowering ways in the near future.

Technology Will Support Accountants, Not Replace Them

Even as far back as 2015, those in authority positions within the business were ringing the death knell for accountants. They were concerned that developing technology, particularly automation, will result in the end of accountancy as we know it due to death by digital. And as recently as 2019, accountants who were asked about the influence of automation on their profession voiced concerns about being automated out of a job, having fewer opportunities for creative problem-solving, and an overdependence on technology in order to complete daily duties.

In spite of this, the events that have transpired between then and today, notably the Covid-19 pandemic, have demonstrated that accountants, along with members of other professions, need to focus their attention much more on adaptation than replacement.

There is little doubt that the digital transition has brought about significant shifts in the playing landscape. The accumulation of large amounts of data has evolved into a valuable resource that must be exploited in order to compete successfully. However, for companies that are prepared to capitalise on the possibilities offered by digital technologies, this transition presents an opportunity rather than a danger.

Utilising AI, automation, and other technologies

Consider the following: By increasing communication and collaboration, data management that is centralised, in particular through the utilisation of cloud technology, leads to a significant reduction in waste as well as a reduction in expenses. It is simplified to collect, access, distribute, and analyse data when there is standardisation and cohesion within the datasphere. As data silos are broken down, there is an increase in transparency, and the quality of the data increases rather than decreases as more data is collected.

In a similar vein, automation cuts costs, improves efficiency, and decreases human error by doing away with labor-intensive tasks that are both time-consuming and tiresome (such as data input and three-way matching, for example). In addition to this, it facilitates straight-through processing, and rather than displacing human accountants, it liberates them to concentrate on strategic activities that call for creativity, teamwork, and invention – services that AI is unable to consistently perform at this time.

ON THE OTHER HAND, AI is able to perform the "grunt work" of analysis. Furthermore, artificial intelligence can enter a kind of symbiosis with humans by rendering raw data into more manageable formats and providing well-developed connections between disparate data sources. It can play a supporting role by providing a "what" that humans can further refine into "hows" and "whys."

For instance, accountants can put their one-of-a-kind human abilities to work by transforming the insights that are derived from high-quality data into more effective financial planning and reporting by putting those insights to work.

They are able to work together with their peers from various business units in an integrated environment to harness financial data to drive innovation, construct supply chains that are more resilient and agile, and develop business management plans that support growth while assuring continuity.

Including more technological approaches will only serve to boost the overall potential value.

• The technologies of virtual, augmented, and mixed reality are going to extend beyond the realm of video games and enable new methods to explore, analyse, and share data. These technologies will also pioneer new process optimizations and connect finance to strategic planning. Seventy-one percent of managers in the AU, according to a poll, are either already utilising some form of virtual reality or are planning to integrate it within the next three to five years.
• Blockchain technology has already garnered a reputation for its usefulness in optimising supply chains, but it also possesses significant promise in the accounting industry. Accounting experts that are familiar with distributed ledger technologies, are able to use those technologies, and can also instruct others about them will be in high demand for a variety of process development, auditing, and records management roles.

Future Accountants Will Be More Strategic, Creative, And Relevant Than Ever

There will be a significant expansion in both the skill set and the job definition of what it means to be an accountant in the future, although the essential skills of the profession will remain the same. Accounting teams will be populated with dedicated accounting professionals and subject matter experts from other business sectors. These teams will work in an environment that is supported by technology and that emphasises collaboration.

The accountants of the future may play a function similar to that of a consultant, extending invitations to business intelligence and procurement specialists and collaborating to develop a strategic sourcing plan. They may use data management solutions, such as augmented reality, to humanise and contextualise spend data for the C-suite, allowing them to make better decisions based not only on return on investment but also on long-term value.

Accountants can offer their own knowledge to teams in other business units by giving vital financial insight, revising budgets, or assuring compliance. This is possible since accountants have more broad skill sets and higher technical savvy than in the past. In addition, it is entirely possible that organisations will make use of strategic outsourcing in order to "fill the gaps" in their technology tree or to acquire the training and tools required to add capabilities to their own team. This is a possibility that exists with a high degree of probability.

Accounting as a function may move away from a focus on enhancing one's skill set through certifications and towards a greater emphasis on core competencies that grow over time. This shift would reflect a shift towards an emphasis on the education and skill development necessary to navigate a business environment that is both complex and constantly evolving.

It is more likely that automation and other data-driven technologies will liberate accountants than it is that they would confine them. Those businesses who see the value and promise of these technologies, as well as those that make the investments in resources and education necessary to equip their accountants to make optimal use of them, will be steps ahead of their competitors.

As a direct consequence of this development, accountants of the future will play a role in their companies that is both more creative and more strategic. As a consequence of this, their companies will not only benefit from more effective workflows and the harvesting of more valuable insights from their accounting procedures, but also from a strengthening of their own resistance to disruption, agility, and competitive footing.

The Future of Accounting Positions in an AI-Powered World

There is no shortage of alarmingly pessimistic headlines about the influence that artificial intelligence will have on virtually every sector of the economy, every conceivable job path, and possibly every facet of our personal lives. With AI, we can have computers do in seconds what would take us hours to complete by hand. This is the promise of technologies like AI. Automation and the desire to accomplish more work with less resources is nothing new for accounting despite the increased interest in artificial intelligence since 2014. This trend has been going strong in the field of accounting despite the rising interest in artificial intelligence.

According to the publication Accounting Today, the idea of automating operations such as accounts payable first surfaced approximately 19 years ago. Because early computers were unable to read paper documents, the automation of these operations has traditionally relied on electronic invoices. Nevertheless, developments in optical character recognition (OCR) and image recognition technology have altered the landscape of accounting automation. These developments have made it possible to employ software for automating data processing, even when the data is supplied in a variety of formats. This has changed the landscape of accounting automation.

Even while technological shifts such as these have never been as catastrophic as the news portrays them to be, there is a possibility that they will impact the landscape of accounting employment opportunities. In a future where artificial intelligence is advanced enough to process the majority of the data that accountants deal with on a daily basis, there will be less of an emphasis placed on the data entry tasks that accountants perform and more of an emphasis placed on the role that accountants play in strategic decision-making and long-term planning.

With these abilities well developed, we are confident that the future is bright for accountants. This is just one of the concerns that we took into consideration when developing the online Master of Science in Accounting (MSA) programme at DePaul. By integrating practical accounting exercises with theoretical knowledge, we were able to address this concern.

Future Prospects for Accountants

In spite of the fact that artificial intelligence has made significant strides in the previous few years, the expansion of accounting career opportunities has not been affected by these advancements. From 2016 to 2026, the Bureau of Labor Statistics anticipates a growth of 10% for accountants and auditors, which is significantly quicker than average. The intricacy of the profession, which encompasses many responsibilities that AI is unable to accomplish, is at least largely responsible for the development. Skills such as understanding a complicated regulatory environment and making smart business decisions are still in great demand in accountancy.

The future won't be either artificial intelligence or human accountants, despite the fact that news stories like this one prefer to put the two against each other. Both can be true. Artificial intelligence, much like other automation technologies such as cloud computing, will cause a shift in the primary responsibilities of accountants. In an article published in 2017, Mike Galarza, a member of Forbes Technology Council, suggested that the rise of AI will create more value for accountants who develop their interpersonal skills, such as communicating complex requirements and developing strategies for their clients. This prediction was based on the assumption that AI will continue to advance at a rapid pace.

Accountants should adapt to become business counsellors and strategists who help drive long-term corporate strategy by making sense of complicated financial infrastructure and understanding increasingly variable tax rules. This will allow accountants to become more valuable to businesses.

Maintaining one's competitiveness in today's extremely fluid labour market will inevitably provide a number of difficult obstacles. Because of the exponential improvements achieved in the technology sector, accountants will need to continue to strengthen their essential domain skills and understand and keep up to date on the technological disruptions that are likely to effect their work.

The Prospects for the Development of Accounting Technology

The manner in which services are valued and priced is anticipated to be one of the primary aspects of the accounting profession as a whole that will undergo significant change. Many accountants set the prices of their services according to the amount of time it takes to do the work, given that manual procedures are equally labor-intensive. Amy Vetter, a certified public accountant and the leader of the Technology Innovations Taskforce for the AICPA's Information Management Technology Assurance (IMTA) Executive Committee, believes that automation technology will force accountants to price their services using a model that is more focused on value.

This indicates that the value of duties linked to data input is expected to decline, whilst the value of accountants' insights and recommendations is likely to increase. However, a report that was compiled by The Association of Accountants and Financial Professionals in Business suggests that this is actually an opportunity. The report argues that accountants are in a unique position to be change agents who drive the direction of technology investment for their respective organisations. Additionally, the survey highlighted the top technologies that are expected to affect the future of accounting, and these technologies are as follows:

• Mobile accounting
• Big data
• Artificial intelligence and robotics
• Cybersecurity
• Educational technologies
• Cloud computing
• Payment systems
• Digital Service delivery

Although the paper that was quoted earlier focused on accounting for businesses, many of these technologies will have far-reaching consequences across the accountancy profession as a whole. For instance, all accountants would do well to keep an eye on the development of digital service delivery. This could take the form of engaging more clients online, utilising secure cloud storage services for clients to share documents, or some other innovation that improves the quality of the service provided to clients.

Accounting's Future: Demand and Changing Technology

With the advancement of technology comes a rapid transformation of the accounting business. At the consulting firm Accenture, for instance, "automation, minibots, machine learning, and adaptive intelligence are becoming part of the financial team at fast speed," as described in Forbes.

Although it would appear that intelligent technology is cutting edge, the majority of businesses have already implemented at least the most fundamental aspects of automated accounting. According to Forbes, the following accounting duties and processes can be done or streamlined by machines: supplier onboarding, accounts payable, audits, procurement, purchasing, expense management, close processing, and customer queries.

Accounting's future is being shaped by intelligent technology, which is having an impact on the different kinds of occupations that will become available. As more sophisticated technologies take care of routine tasks, people will be responsible for a greater portion of the analysis and will become the most important link between data and customers. As a consequence of this, the job of the accountant and the need for accountants in the future will continue to be influenced by technological developments.

Earning a master's degree in accounting online can help students develop skills in areas such as managerial accounting, data analytics, and advanced financial reporting. This can help individuals gain a more complete understanding of new integrated accounting technologies and advanced analysis techniques. Individuals may want to pursue this option in order to gain a more comprehensive understanding of these topics.

New and Evolving Technologies in Accounting

Accounting is reaching new heights as a result of technological advancements. Whether you're an experienced accounting professional or an aspiring rookie, you'll want to familiarise yourself with the following technologies that are making their way into the accounting profession. This is true whether you're trying to stay on the cutting edge of the industry or not.

Cloud Computing

Working on the cloud is a key trend in the technology industry. Cloud computing enables almost instantaneous access to a variety of resources, including data and computer power. An essential benefit of a cloud-based system is the continuous updating of information, which enables clients as well as accountants to perform data analysis and make decisions based on information that is as up-to-date as possible. When information on a system is updated, cloud-based technology may also enable "continuous monitoring, rather than intermittent analysis," as stated by the Journal of Accountancy. This can be done whenever the information is accessed through the internet.

As new sophisticated technologies such as the internet of things (IoT), artificial intelligence (AI), and machine learning are integrated into cloud computing, cloud computing is witnessing tremendous expansion. The use of cloud computing is likely to become standard in accounting in the foreseeable future as a result of the proliferation of the aforementioned technologies.

Automated Accounting Tasks

Aspects of accounting that traditionally required a lot of human effort and time, including as audits, tax preparation, banking, and payroll, are in the process of being totally automated. The application of artificial intelligence to the creation of self-learning systems will continue to be integrated into accounting tasks. As a result, technological systems will take over jobs that are repetitive and time-consuming, while humans will continue to be responsible for analytical and managerial tasks.

For instance, prominent software suppliers like Intuit, Sage, OneUp, and Xero offer automated data entry and reconciliation alternatives for use in company bookkeeping by making use of AI and machine learning capabilities.

According to the CPA Journal, another illustration is the use of robotic process automation (RPA) to cut processing times for audits and contracts down to weeks rather than months. This is possible thanks to RPA. In addition, according to Forbes, larger companies who use RPA AI integration have "improved efficiency and higher-level services" in comparison to smaller companies that do not use AI as a competitive advantage.

Blockchain Technology

Blockchain technology is another another development that will have an effect on the demand for accountants in the future. Blockchain technology is a computer-based recording system that operates within a user-to-user network and employs cryptocurrencies. Even though blockchain may have become more well-known as a result of bitcoin, a digital currency in which a record of transactions is kept and new units of money are generated independently of a bank, the technology has made significant strides since its inception.

The promise of a new kind of accounting ledger, one that can be continuously updated and confirmed without the risk of being manipulated or corrupted, is one of the reasons why blockchain technology is intriguing for use in accounting.

It should come as no surprise that accountants are beginning to take an interest in blockchain technology given that users can access ledgers in real time, create smart contracts, and record transactions using the technology. According to Accounting Today, numerous accounting firms have already implemented blockchain technology. This includes the "Big Four" accounting firms of EY, PwC, Deloitte, and KPMG.

Future Accounting Professionals Need These Skills

There is little question that the accountant of the future will need to have a strong grasp of technology in order to keep up with the rapid pace of industry change. In order to provide clients with up-to-date financial analysis and maintain their position as market leaders, accountants need to become proficient in leveraging cloud computing technologies as intelligent technologies continue to advance and more businesses move their information to cloud-based systems.

Professionals in the accounting industry who are interested in using blockchain will need to be knowledgeable with the software packages that are important to the technology, as well as how to set up information transfer for ledgers, contracts, and records.

It is imperative to prepare for the future of accounting by learning the necessary abilities to do the administrative, managerial, and analytical activities that cannot be done by technology. This is because automation is expected to become a significant component of accountancy in the near future.

In addition, many accountants may take on advisory roles with their customers, which means they will need to be proficient in evaluating large amounts of data in order to recognise patterns and trends. The ability to mine data and demonstrate fluency in various data science methodologies will be essential in this regard.

In a same vein, those who work in accounting will need to be familiar with data visualisation tactics and applications in order to be able to transform all of that information into insights for clients and executives of their respective companies.

Accounting professionals that possess these talents have the ability to apply predictive analytics and forecasting in order to provide strategic advice to customers or companies. Accounting professionals will have more time to focus on higher-level analytical skills as a result of automation, which will free up time that was previously spent on more basic activities.