Adapt or Die: Addressing the Ultimate Accounting Conundrum

Saloni Arora
Nov 8 · 5 min read
The importance of technological advancement in the life of a CPA or accountant
The importance of technological advancement in the life of a CPA or accountant

My first reaction when someone says accountants are slowly becoming irrelevant is- “The thought itself is irrelevant”! Having always been confident about the importance of the role of accountants in my life and looking at them with awe since forever, my belief in the accountancy profession has been one that they can never go out of the industry.

However, I recently read about a warning addressed to accountants that outwardly asked them to either adapt to the changing course of the industry or face extinction. That got me thinking- are accountants really that irrelevant now? Of course, not! How will we handle our books and businesses without them? Yes, I am aware and a complete fan of the various accounting software solutions such as QuickBooks and Sage, and I have had the pleasure of using one for handling my personal finances too. But, I still need an occasional visit or a casual stopping-by at my accountant’s office (who also happens to be a close friend) to clear doubts, seek help, get updates, and not-to-forget, for the much-needed business advice!

How is Technology Affecting Accountants?

The impact of artificial intelligence can be seen across the globe. Several economies and societies have been on the receiving end of changes brought about by artificial intelligence and machine learning. Accounting, along with several other industries, has been on the frontline facing the impact of technological advancement. This, both directly and indirectly, implies that professionals from every trade will be facing the threat of technological pervasiveness in case their industry or company failed to adapt to the changing trends, including accountants.

There are plenty of contemporary issues that are affecting the future of accounting in one way or the other. Cloud computing, artificial intelligence, machine learning, blockchain, data science, startup culture, the impact of social media, and environmental issues like global warming are some of the many factors that play a significant role in altering consumer expectations. As the course of a consumer’s demands varies, the accounting needs change gradually.

Accountants of the future: Reshaping the fate of accounting

As I already mentioned, experts believe that accountants will be extinct/replaced if they refuse to adapt to the changing trends. Apparently, being well-versed with accounting principles, following the protocol religiously, and being flawless ‘bean counters’ is not enough for accountants today.

But, how can accounting professionals turn technological dominance in their favor?

One constant solution is to continuously engage in training and upgrading of skills. Accountants should work together and lead the change to survive the technological advancements and ensure that technology does not replace them completely.

What do accountants need to be successful?

Here is what accountants and CPAs need to have to ensure they are never replaced:

  • The ability to handle multiple clients and duties
  • The willingness to look beyond the narrow nature of their profession and suggest ways to add more value to the traditional profession of accounting
  • Be more than just number-crunchers, such as advisors and business analysts

All in all, a progressive accountant, who can add value to their profession and their firm, should be a lot different than the traditional accountant.

The Many Attractive Attributes of the Accountant of the Future

Accounting software entered the industry more than 20 years ago and the cloud has already paved its way into the profession, being more deep-rooted than we can currently fathom. Accounting, as a result of these technological advancements, has had its own share of ups and downs. However, a progressive accountant can do its bit to ensure that they are not rendered irrelevant in the industry.

Simple attributes like having the willingness to adapt to the changing technology, cultivating the ability to learn new ways of doing things, educating themselves about the latest advancements, making learning a constant process, developing the right social skills, having marketing knowledge to reach out to prospective clients, offering relevant and productive suggestions to the customers, and providing insights into the client’s data and making recommendations are enough to survive the dynamic nature of technology.

How Does The Transition Happen?

Traditional accounting methods have long been outdated. From heavy-weight ledgers to maintaining excel sheets, and then the introduction of accounting software, accounting has had it all. But, the current accounting scene is a lot different. Accountants need to be familiar with the latest digital tools to be technologically sound. Understanding the client’s expectations is only half the work done. The real challenge is to meet with those expectations and that requires a smooth transition from traditional accounting techniques to the latest ones

Let’s consider this- the traditional accounting model demands full-time employment with accountants sharing a common workplace. The modern setup is a lot different. Not only do the employees demand a flexible work schedule, the clients too are mobile. The culture of presenteeism is fading and gradually transitioning into one that promotes working on-the-go.

The past few years have seen a surge in accountants seeking part-time work opportunities and a growing affinity towards freelancing. The strict 9-to-5, Monday to Friday, office-going culture is swiftly taking a backseat. Although, the culture still has a long way to go to cement itself, the need to be technologically advanced is being felt right here, right now.

Needless to say, the transition is challenging. Transforming the entire infrastructure of a strongly-built, traditional industry into a more tech-savvy one takes determination and consistency. However, when existence is at stake, not changing is not so much of an option. Also, since the transition promises a wave of opportunities flowing-in, there is not much of an option left, is there?

Why Adapting is the Only Viable Option?

In my personal opinion, adapting to the latest technology is the only possible option left for accountants. Be it ‘survival of the fittest’ or the fact that machines can not really replace humans completely, adopting and adapting to technology is the only way out for the accounting profession to survive.

Setting up the right goals and knowing the aims of technological transition can help accountants be more willing to include change. Technology should be such that it adds meaning and makes accounting more productive. The newly introduced technology should be valuable and useful to anyone who uses it or gets affected by it, for example, individuals, business owners, and the economy as a whole.

How Local Accountants Can Prepare Themselves for Changing Technology?

A few simple steps are enough for accountants to accept and introduce change in their day-to-day working, like keeping a tab at the changes happening in the industry. Accountants must find time to converse with their clients to know what they expect. Instead of losing your clients because you follow traditional methods, you can simply be thorough with technological advancements. Make recommendations to the concerned people in your firm and seek technological assistance from those who can come with the required knowledge.

My Recommendation: Accountants do not just play with numbers. They do a lot more. Read this interesting piece to know how wide the role of your accountant can get.

The Bottom Line

The public sector is highly volatile. Changes happen every hour and the only refuge from becoming extinct is to embrace what’s coming. Accountants need to make ample contributions in helping their firm grow and advance. Firms, on the other hand, must welcome multi-lingual accountants, promote a multi-culture environment on the floor, grab every opportunity to become a part of the global market and be technology-driven at all times.

Saloni Arora

Written by

Having majored in Economics, a developed taste in technology, and living with a natural love for writing, I have found my niche in accounting technology.

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