As technology progresses steadily through the years, are accountants still relevant? Yes, they will always be relevant, but their field of work is changing. With an increase in usage of cloud accounting technology, accounting has become more technical. Although technology has made bank reconciliations, data entry and billing more smooth-running than before, there are still existing problems that accountants face in their line of work.
- Change in Skill Requirements
Technology has made the accounting industry a more interconnected world, which requires accountants to wear multiple hats at once to understand the bigger financial picture. In fact, accounting has become more of data analytics than bookkeeping. Accountants are now required to have a deeper understanding about business processes and requirements, which makes accounting more than just bookkeeping.
Since we live in an economy that is filled with ambiguity and uncertainty, financial forecasting, financial analysis, and cash flow projection proficiency are important skills that accountants should possess. In addition, financial and business reports should be created and personalised according to each company’s different needs in order to achieve the company’s key objectives. This shows that there is no longer a fixed format of reports to be used for all companies.
- Change in Tax Laws
In our everchanging world, tax regulations are also constantly changing, and sometimes accountants may find it hard to keep up with the changes. Hence, accountants should be aware of the changes and use new accounting technologies and tax management systems to handle taxes online. Accountants should also get used to the new accounting practices and strategies to keep up with using new accounting technologies.
- Increase in competition in the accounting field
Competition is always existent in the accounting industry and poses a threat to accountants. There is a decrease in favour of many accounting departments in companies to engage external accounting services. Many accounting agencies also concentrate on specialised accounting skills such as non-profit accounting and financial analytics. However, to keep up with competitors, it is important for accountants to use accounting technology software to make tedious tasks easier, such as billing customers and paying vendors. This increases productivity in accounting practices and hence frees up an accountant’s time, which allows accountants to put more time in focusing on existing clients and growing their client list.
- Lack of IT literacy in the Accounting Field
The job scope of an accountant has become more and more technical, hence failure to adapt to cloud technology may lead to problems in an accountant’s career. Cloud accounting systems are now widely used in both accounting offices and remotely. Hence, one of the biggest challenges that accountants may face is not being able to use the cloud accounting software smoothly and operate efficiently. Accountants need to adapt to the corporation of technology in their day-to-day processes, define the business tools needed to communicate to the accounting solution and determine the data needed to be monitored, as these are important factors for a complete financial picture of the business.
In conclusion, with the ever-changing and improving technology, accountants should keep up with the changes and adapt to new technology quickly. Technology exists to aid the accounting field in various accounting practices to increase productivity and efficiency. In addition, being a stable line of work, there will most likely be an increase in competitors. However, competition increases efficiency of firms as firms will look into new strategies and technologies to outrun each other. Last but not least, it is crucial for firms to look at change in tax laws, so that accountants can prepare themselves and change their practices along with the changes in tax laws.
