September 21, 2022
The accounting profession is undergoing a massive transformation. New technologies are enabling accountants to automate manual processes and simplify complex tasks, while artificial intelligence is reducing the need for entry-level bookkeepers and analysts. These changes are leading to new opportunities for professionals with the right skills.
In this article, we explore the future of the accounting profession, and we go over the skills you’ll need to succeed as an accountant in the future.
The accounting profession is a globally distributed and diverse workforce. The skills and education of accountants vary across industries, countries, and companies. Accounting has always been a field that requires significant training, but now more than ever before, accountants need to keep up to date with rapid changes in technology and regulations.
It's safe to say that the future of the accounting profession is dependent on many factors, including economic growth, government regulations, and technological advancements. Globalization and digitalization, in particular, are the two primary factors that are shaping the accounting profession in the modern era.
The Intuit 2020 Report is the most comprehensive report on the future of the accounting profession. The report is based on surveys of experts, interviews with industry leaders, and insights from top universities. The report explores the key challenges facing the accounting profession and offers potential solutions.
The future of the accounting profession is driven by five factors:
The performance of the economy will affect the accounting profession. As the economy grows, companies are more likely to hire accountants to manage their finances.
New technologies are transforming the accounting profession, including Artificial Intelligence (AI), blockchain, and automation.
New business models like the gig economy and the rise of subscription services are impacting the accounting profession. Accounting processes are also changing as more companies go global.
The accounting profession is facing a shortage of talented people. The ageing workforce and the low popularity of accounting as a profession are contributing to this challenge.
Accounting rules and regulations are changing, especially in industries such as mining, oil and gas, and healthcare.
A significant debate in the accounting industry is around the use of fair value accounting. Fair value accounting means companies record the value of their assets according to the current market price.
Proponents of fair value accounting argue that the current system (historical cost accounting) is inaccurate because it does not reflect current market conditions. They believe a switch to fair value accounting will provide a better reflection of the current financial situation of companies. They see this as beneficial to the economy because it will reduce the risk of another financial crisis.
Opponents of fair value accounting argue that it is an imprecise system that will overstate the value of companies. They fear that investors will be misled when they use the numbers in their decision-making process. The debate around fair value accounting is likely to continue in the future, which will also shape the accounting profession.
The future of the accounting profession will require accountants to have a combination of hard and soft skills. Hard skills are related to technical skills such as programming and data management. Soft skills include communication, critical thinking, and emotional intelligence.
Accountants will increasingly need to be data-driven decision-makers who can use machine learning and AI to make better business decisions. They also need to be able to communicate with non-technical people to make data actionable. Accountants need to be comfortable working with computers and AI to help automate manual tasks.
As more companies go global, accountants will need to speak different languages and they’ll need to understand the cultural differences between countries. That said, accountants can already use AI to translate data and communicate with non-English speaking people.
The future of the accounting profession looks promising. New technologies are helping accountants to improve their workflows and provide valuable insights to businesses. As technology changes the profession, accountants need to adapt their skill set to remain relevant. They can use AI and machine learning to automate manual tasks and spend more time on strategic projects. These skills will almost certainly define the profession in the years ahead.
If you are responsible for managing your company’s financial accounts, then consider trying LiveFlow. The platform features various templates and tools that can help you simplify and automate much of the process. In fact, one of the best tools available in the industry is the new live budget vs actuals tool from LiveFlow. Plus, you can explore all of these great features with a free 30-minute demo. So, if you want to take the stress out of accounting then be sure to try LiveFlow today.