Technology is a powerful force that is reshaping the accounting sector in unprecedented ways. Cloud accounting, AI and big data analytics, and consultancy are some of the major trends that are creating new opportunities and challenges for accountants and finance professionals. In fact, a few years ago, there were rumors that technological advancements could spell the end of the accounting profession.
However, it is clear today that technology can only replace accountants who limit themselves to tax filing tasks, but it can never replace the professionals who utilize their experience to contribute to business development.
The role of technology in the profession is quite clear. It has arrived to assist in automating the cumbersome and repetitive tasks that, instead of adding value to professionals, take away time that could be used more effectively.
For example, accounting management software allows for the automation of the heaviest workload related to tax filings and repetitive accounting routines. It also contributes to the comprehensive management of the practice, giving accountants the time they need to focus on more valuable tasks.
According to a report by Fortune Business Insights, the accounting software market will only continue to grow in the coming years and an understanding of digital and technological practices will be required in the modern accounting industry. Automation of accounting processes, in particular, has emerged as a key trend since 20222.
AI and Big Data: The Future of Accounting
Another major trend in accounting technology is the adoption of artificial intelligence (AI) and big data analytics.
AI refers to the use of computer systems that can perform tasks that normally require human intelligence, such as learning, reasoning, problem-solving, decision-making, and natural language processing. Big data refers to the large and complex sets of data that are generated by various sources, such as transactions, social media, sensors, devices, etc.
AI and big data analytics offer several benefits for accountants and finance professionals, such as:
- Accuracy: AI and big data analytics can process large amounts of data faster and more accurately than humans can. This can improve the quality and reliability of accounting information and reduce errors and fraud.
- Insight: AI and big data analytics can provide deeper and more meaningful insights into accounting data by identifying patterns, trends, anomalies, risks, and opportunities. This can help accountants and finance professionals make better decisions and provide more value-added services to their clients.
- Efficiency: AI and big data analytics can automate various accounting tasks and processes that are repetitive or tedious for humans. This can free up time for accountants and finance professionals to focus on more strategic or creative aspects of their work.
- Innovation: AI and big data analytics can enable new ways of doing accounting that were not possible before. For example, AI can generate natural language reports, forecasts, and recommendations based on accounting data. Big data can enable real-time and predictive accounting that can anticipate future scenarios and outcomes.
According to a report by Forbes, AI, and big data are among the six biggest technology trends in accounting and finance3. Moreover, according to a survey by Sage, 58% of accountants believe that AI will have a positive impact on their profession, and 49% say that they are already using or planning to use AI in their work.
Strategic consultancy: The natural path of the profession
If technology provides the necessary resources to easily handle tax obligations, automate repetitive accounting tasks, and simplify document management, accountants can specialize in providing more comprehensive services to their clients.
Earning the trust of clients means offering tailored services and solutions that yield results. This involves anticipating needs that may not yet be apparent to clients but can be easily identified by the accountant's analytical insight.
When an accountant demonstrates the ability to promote business development, clients will value them even more, and they will become an indispensable asset for business growth, creating more trust, which is crucial in our profession.
In a study conducted by Thomson Reuters in September 2021, analyzing the accounting practice market in Argentina, all participants affirmed that what their clients value the most are aspects such as trust, personalized attention, and quick responses. On the other hand, the technical aspects of the profession are considered merely obligatory requirements.
So, what holds more value for a client? An accountant who keeps their company's tax compliance up-to-date or one who aids in its growth? Any accountant is capable of maintaining business compliance, but not all can offer the strategic consultancy that modern businesses so desperately need.
Therefore, it is increasingly evident that the future of the accounting profession lies in strategic consultancy.
Strategic consultancy can include services such as financial planning, budgeting, forecasting, risk management, business valuation, mergers and acquisitions, and corporate governance. These services can help clients improve their performance, optimize their resources, and achieve their goals.
Considering what we've mentioned, it seems that only clients benefit from consultancy. However, when the client benefits, don't we, as accountants, also benefit? Doesn't the client loyalty that consultancy can generate provide us with advantages? Absolutely. All of this translates into higher returns, greater market value, and more clients.
With the help of technology, a few can accomplish the work of many, which increases the income of an accounting practice. You can offer consultancy while simultaneously maintaining tax compliance for businesses without stretching yourself thin to achieve it. Moreover, a technological tool allows you to offer personalized management and provide quick responses, precisely what the market is seeking.
