Accounting leaders tap technology as top concern

Daniel Hood

Published

September 25 2017, 1:58pm EDT

The common wisdom these days is that every business is a technology business, but it might be more true to say that every business is a business that wrestles with technology — trying to make the most of the opportunities it offers while minimizing the disruption and disintermediation in inevitably brings — and accounting is no exception, according to the profession’s leaders.

In an informal survey of the top figures in accounting, technology and technology-related issues were top of mind, with industry experts citing a wide range of implications for accountants, from the dangers posed by automation and hackers to the new services springing up in data analytics. “The issue of technology is reaching across the profession and having an impact on human capital, marketing, business development, firm management, client service and regulation,” explained Kim Fantaci, president of the CPA Firm Management Association. “From automation to cybersecurity, everyone and every project/initiative are affected. Those within the profession will continue to struggle to remain ahead of the changes and requirements.”

“Our industry is being disrupted by accelerating change driven by technology,” added Grant Thornton CEO Mike McGuire. “With every technological advancement, our work becomes less about rote accounting tasks, and more about solving business problems, mitigating risks and creating solutions in a complex and changing world. This disruption is changing everything about our profession, including the talent profile that will drive the profession in the future.”

Three particular technologies were singled out time and again as of the most concern. “Disruptive technologies like data automation, Blockchain and artificial intelligence are changing (or will soon change) the nature of the services accountants offer their clients,” said Joe Woodard, CEO of Woodard Events. “Automation technologies are a positive disruption, but require accountants to rethink their processes and the way they deploy technologies within their firms. Blockchain and artificial intelligence, though not ubiquitous at this point, have the potential to displace thousands of jobs within the accounting profession, especially for cyclical services like bookkeeping, audit and tax preparation. To adapt, accountants must leverage technologies aggressively, while at the same time embracing roles with complex processes and/or numerous variables that technologies cannot easily displace.”

Accountants aren’t alone in facing risks from these trends, but that’s not necessarily comforting. “A recent, highly credible study shows our entire profession on par with waiters and cashiers for the risk of being replaced by technology,” noted Art Kuesel, president of Kuesel Consulting. “With millions of high-paying jobs in public accounting and private industry at risk, as well as the reputation and value of what an accountant can bring to the table, leaders in the profession have begun to take action and get the word out on automation, artificial intelligence, and robotics. What’s missing, still through 2018, will be the answers.”

While many agreed that the profession needs to pay attention to these emerging technologies, not everyone was focused on their downside. “Artificial intelligence and machine learning will be a huge game-changer for the accounting profession, as it will reduce the effort spent on coding transactions and unlock time for accountants to become true business advisors,” said Xero founder and CEO Rod Drury. “For example, accountants are spending hours and hours completing various tactical tasks throughout the day. By leveraging AI, accountants can automate those tasks and free up their time to focus on larger business objectives. If accountants do not acknowledge the power and potential of AI, it’s a missed opportunity to advance the profession.”

Similarly, Warner Johnston, the interim head of North American for ACCA USA, noted that his organization had “conducted a survey that showed young talent sees job automation and technology as an opportunity, allowing for more strategic activities than routine work. Fifty-seven percent of young professionals surveyed see technology replacing entry-level roles, but 84 percent see technology providing the opportunity for them to focus on much higher-value-added activity.”

For still others in the top tiers of the profession, in fact, the main concern is not about any particular technologies, but how accountants are embracing technology as a whole — or failing to.

Worse yet, as the demand for accounting talent increases, the supply isn’t keeping up. “We’re not translating the pipeline of Bachelor’s and Master’s candidates into CPAs,” explained Jennifer Wilson, the co-founder and owner of ConvergenceCoaching. “The competition for accounting graduates is huge and the value proposition for sitting for the CPA Exam and working in public accounting is not as clear or compelling as it used to be. Being perceived as an ‘old-school’ profession doesn’t help. … We’re all responsible for making this profession attractive, vibrant and growing. And it won’t be, unless we change significantly.”

Fortunately, other leaders had some specific suggestions for improving the flow of young professionals into the field. “It’s important that we support a robust pipeline of talent by envisioning and implementing innovative ways to instill the skillsets that the accountant of the future will need to thrive,” said Joanne Fiore, vice president of professional media, academic and student engagement at the AICPA. “The profession can do this by playing an even stronger role in accounting education, partnering with universities to identify and teach skillsets and enhance accounting curriculum to more closely match marketplace needs.”

Finally, accountants could also do a better job of touting the advantages of a career in the field: “The single greatest challenge is educating our young professionals and future accounting graduates as to the amazing opportunity available in our profession,” said Philip Whitman, president and CEO of Whitman Business Advisors. “Too many people exit well before the carrot of partnership is dangled. While succession and transition remain top of mind for the majority of CPA firms and practices, it is not a question of there being enough money or financing, it is the lack of talent coming up the ranks to fill the client service demands. We must do a better job of sharing with the Millennials and even the Generation Zs what an amazing career or life one can have as an esteemed and most trusted professional as a CPA.”