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04 Nov 2022
5 Min Read
Ailyn Low (Editor)
It’s possible for the role of an accountant to survive the digital age if we prioritise accounting skills for a more hybrid accounting role.
A report by ACCA in 2016 showed that digital knowledge is necessary for accountancy and finance professionals to ensure their relevancy. Its survey showed that 89% of their 4,264 accountancy and finance professionals worldwide said that digital skills were necessary for their industry and 63% indicated that they considered that they had the right level of digital skills for their roles.
If this was the case back in 2016, it’s evident that today, the accounting industry has changed from its traditional ways. Change is the nature of business. If there ever was a period when accounting was only about simple bookkeeping, those days are well and truly over thanks to digital changes that artificial intelligence has made to the industry.
Artificial intelligence is expected to disrupt the accounting industry in two main ways:
For now, AI-based intelligence isn’t likely to replace human accountants in large numbers.
Still, these technologies have the potential to automate many of the mundane aspects of accounting and free up humans for more complex work in this field, allowing us to focus more on the ‘hows’, ‘whys’, and ‘what’s next’, rather than the ‘what’.
The role of an accountant isn’t going to die anytime soon. It’s a vital role in any business that helps you track income and expenditures, ensures statutory compliance, and provides the necessary financial information for investors and management to make their business decisions.
Yet, the past few decades have seen a rise in active accounting automation, with software optimising many of the routine tasks that accountants traditionally performed. This created an imbalance in demand for different types of accounting professionals, as many became more comfortable with employing AI to streamline their work and personal life.
As a result, there’s now an increasing demand for human accountants capable of both implementing and using these technologies. Despite this trend towards automation, AI-based intelligences are far from being able to operate without human intervention.
In the case of data analytics, for example, machines are most effective when given a specific set of rules by human accountants as most computers still have a difficult time understanding what’s happening in real time.
The best results still come from us taking control of these algorithms while providing them with context and adding value to their output.
With the shift in dynamic accounting technology, what then are the skills that accountants these days need to possess?
Aside from the traditional and technical skills needed by all accountants, it’s crucial that accountants are flexible enough to adapt to the changes. Here are 3 different skills accountants need today.
Accounting Skill #1: An Understanding of Digital Analytics and Its Tools
In the past, providing historical data used to be quite sufficient. Today, it’s also important to have access to predictive data in addition to that. This requires accountants to know how to turn and analyse big data by analysing them into concise, decision-driving insights.
That said, technology itself changes rapidly.
Accountants must be ready to expect and adapt to different up-and-coming tools emerging which necessitate ongoing cultivation of flexibility and adaptability. Accountants of this age must have both a theoretical and practical understanding of data, analytics, and technology.
Accounting Skill #2: Good Communication and Relationship With Others
If a person behind a desk at the back of the office that comes out of their shell every once in a while comes to mind at the mention of the phrase ‘thriving accountant’, you can rest assured that in today’s era, it wouldn’t be enough.
The hybrid accountant will know how to manage numbers AND people especially when needing to communicate effectively the information gathered in ‘Accounting Skill #1’. It’s not only about gathering insightful data but critically translating jargon and number-filled documents while skillfully conveying them to your team, your leaders, as well as both internal and external stakeholders.
Accounting Skill #3: Possess Creative Business Acumen
In the past, there may not have been a need for a ‘creative’ accountant. In today’s business world, however, where start-ups and SMEs are on the rise, this hybrid accountant needs to be quick in identifying opportunities while mitigating potential risks. Combining the accountant’s technical skills and understanding of numbers and the financial needs of the company while thinking out of the box in a creative manner is definitely an asset in this changing landscape.
That said, it’s not just about numbers or financial needs. It’s about understanding the setup of a business as a whole in order to provide the most holistic and informative analysis and next steps.
