Technology & Future of Accounting
The accounting industry has been evolving rapidly with the rise of technology. For instance, Accenture, the consulting company, notes that “automation, minibots, machine learning, & adaptive intelligence are becoming a part of finance teams at a breakneck pace”.
Intelligent technologies might sound like a novelty, but many companies are already using rudimentary automated accounting processes. Accounting tasks and processes machines can perform, or can optimize, according to Forbes, include vendor onboarding, accounts payable, audits, purchasing, purchasing, expense management, closing processes, and customer inquiries.
iLead-the best accounting & enrolled agent training institute in Hyderabad brings you some interesting facts about the impact of technology in accounting and its future.
Overview
There is no shortage of wildly negative headlines regarding AIs effect on virtually every industry, every career path, and potentially, every facet of our personal lives. The promise of technologies such as AI has almost always been one of efficiency: With AI, we could get computers to do things that took us hours to do, in seconds. Despite a surge of interest in artificial intelligence since 2014, automation — and a drive to get more done with less resources — is not a new phenomenon in accounting.
As Accounting Today notes, the concept of automating processes such as accounts payable dates back almost 20 years. Traditionally, automation of those processes relied on electronic bills, since early computers were not capable of reading paper documents.
However, improvements in optical character recognition (OCR) and image recognition technologies have changed the landscape for automating bookkeeping a.k.a started using online bookkeeping software, making it possible to leverage software for automated data manipulation, even if data is received in different formats.
While technological changes such as these were never as dreadful as news headlines made it out to be, they do hold the potential to transform the landscape of the accounting profession. In a world in which artificial intelligence is sophisticated enough to handle much of the information that accountants handle every day, for instance, there would be less emphasis on data-entry tasks, and more emphasis on accountants’ roles in strategic decision-making and long-term planning.
This is just one concern that we addressed when developing online US taxation courses and other accounting course programs such as EA certification, payroll courses as well as QuickBooks.
iLead’s enrolled agent training course in Hyderabad combines hands-on accounting exercises with theoretical learning–with those skills fully developed, we are confident the future of the accountant is bright.
To learn more about our accounting course programs, contact us.
Future of Accounting Jobs
While AI has made significant strides over the last few years, those advances have not hurt growth of the accounting workforce. The Bureau of Labor Statistics projects 10% growth (faster than average) in accounting and auditors between 2016 and 2026.
The increase is due, at least in part, to the difficulty of the work, which includes a number of tasks AI cannot perform: Skills such as making strategic business decisions and understanding the complex regulatory landscape are still highly sought after in accounting.
While news stories such as these love to pit AI and accounting professionals against one another, the future is neither artificially intelligent nor staffed by human accounting professionals. Like other technologies that are automating things, such as cloud computing, AI will shift the emphasis on accountants’ roles.
As Mike Galarza, member of the Forbes Technology Board, suggested in a 2017 piece, the growth of AI will create greater value for accountants who build their soft skills, such as the ability to communicate complicated requirements and strategize with clients.
“Accountants must grow into advisors and corporate strategists that help guide the business long-term strategy–making sense of complicated financial infrastructures and interpreting ever-fluid tax laws,” Galarza wrote. Of course, staying competitive in a very dynamic labor market is not without challenges.
The exponential advances being made in the tech industry will require accountants to not only continue developing key skills within the field, but to also understand and keep up-to-date on technology disruptions likely to affect their jobs.
Future of Accounting Technology
Technology will support & not replace accountants
One of the biggest changes in the accounting profession overall is likely to be how services are valued and priced. Because even hand-holding tasks are labor-intensive, many accountants price their services by the amount of time it takes.
Amy Vetter, CPA and leader of the technology innovation task force on AICPAs Executive Committee for Information Management Technology Assurance (IMTA), believes that automation technologies will force accountants to price services based on more value-oriented models.
This suggests the value of data-entry-related tasks is likely to decrease, whereas the value of an accountant’s insights and recommendations will increase. A report by the Association of Accounting and Finance Professionals in Business suggests this is actually an opportunity, saying accountants are uniquely situated to become the change agents that guide the direction of their organizations’ tech investments.
The report identified the following:
- Big Data
- AI & robotics
- Mobile Accounting
- Cyber security
- Cloud computing
- Educational technologies
- Payment systems
- Digital service delivery
While the above-mentioned report is focused on accounting for businesses, many of these technologies would have a broad impact throughout the accounting profession. For instance, all accountants can benefit from keeping their eyes peeled toward digital delivery of services, whether this takes the form of engaging more clients online, using secure cloud-based document-sharing services to allow clients to share documents, or some other innovation enhancing the customer experience.Â
Future-proof your Accounting Career
Like other professions affected by artificial intelligence, accountants will have to change how they position themselves and connect with clients.
Given the rise of AI and other advancements, todays accountants will be challenged to be more technologically adept and to position themselves as strategic partners for both clients and employers. Below are some critical skills for remaining competitive and serving clients better as artificial intelligence gains further traction.
- Gain Theoretical & Practical Accounting Experience
One key skill that is still missing in AI generally is the contextual awareness that would allow it to identify the best response for any given situation. For instance, an AI might be able to analyze thousands of documents within minutes and recognize quantifiable trends, but an AI cannot yet make recommendations based on that information. Accountants equipped with analytics and AI, along with a familiarity of accounting practices and a familiarity of their organizations, will be able to close that gap.
We are particularly excited by this skill set, as it is crucial in how we built our accounting and FPC training course curriculum. A broad understanding of accounting fields will always be essential, but the future of accounting will also make it essential to think outside of the box when it comes to performing a set of rote tasks. Instead, all accountants need to challenge themselves to figure out the why elements, to question assumptions about whether their current approaches are best for their organizations or clients.
- Build Strong Communication & Business Skills
As the role of an accountant becomes more about making decisions, strategizing, and planning, there will be an increased emphasis on communications and business skills. In addition to being able to see the quant data through a strategic lens, communicating recommendations, like why clients should take a certain course of action, will be a strong asset for accounting careers going forward.
- Develop a Curious Mindset
Curiosity is an essential characteristic in any dynamic environment, because it generates the propensity to ask questions, to understand problems at a deeper level, and to challenge assumptions. Since technological innovation is not necessarily the main focus in accounting roles, it is possible to overlook significant changes in the technological landscape.
Curiosity can help address this problem, empowering accountants to see emerging technologies as opportunities to improve how they do their jobs.
About iLead’s Online Accounting & US Taxation Courses
By developing the practical skills necessary to succeed as an accountant from day one, our trainees are equipped to immediately advance in their careers or transition to high-competitive jobs.
Our programs are taught by instructors who have attained the highest levels of education in accounting EAs, CPAs, finance, and US law, as well as being experienced accountants themselves.
In addition to building competency with highly sought-after accounting skills, such as taxation, auditing, payroll, our programs provide students the opportunity to develop critical thinking skills and a working knowledge of accounting principles. This equips our graduates to assume more strategic roles in their organizations, provide greater value to clients, and adapt to industry disruptions, such as those caused by technology.