STATE OF ACCOUNTING PROFESSION
The accounting profession is facing a period of rapid change and disruption, driven by technological advancements, evolving regulations, and changing business models. Despite these challenges, there are also significant opportunities for accountants to add value and play a critical role in the success of businesses and organizations.
Challenges Facing the Accounting Profession:
Automation and Artificial Intelligence: With the increasing use of automation and artificial intelligence, many routine accounting tasks are becoming automated, which is transforming the nature of work for accountants. According to a study by the Association of Chartered Certified Accountants (ACCA), 64% of respondents said that automation and artificial intelligence will have a significant impact on the accounting profession in the next five years.
Evolving Regulations: The accounting profession is subject to a complex and ever-changing set of regulations, including new accounting standards and tax laws. The increasing complexity of regulations and the need to comply with them is a significant challenge for accountants.
Changing Business Models: The rise of the gig economy, virtual workforces, and remote work has created new challenges for the accounting profession. As businesses change their operating models, accountants must adapt to new ways of working and new technologies.
Opportunities for the Accounting Profession:
Strategic Decision-Making: Accountants have a unique understanding of the financial health of a business and can play a critical role in strategic decision-making. By analyzing financial data, providing insights, and making recommendations, accountants can help businesses make informed decisions and achieve their goals.
Technological Expertise: With the increasing use of technology in the accounting profession, there is a growing need for accountants to have expertise in emerging technologies such as blockchain, artificial intelligence, and data analytics. Accountants who develop these skills will be in high demand and can add significant value to their clients.
Advisory Services: As the accounting profession evolves, there is a growing demand for advisory services. By providing business planning, risk management, and other advisory services, accountants can help businesses navigate complex challenges and achieve success.
According to a survey by the International Federation of Accountants (IFAC), 91% of respondents said that technology is driving significant changes in the accounting profession. (source: IFAC Global SMP Survey 2018)
The World Economic Forum's Future of Jobs Report 2020 identified accounting, bookkeeping and payroll as one of the top five jobs most in demand in 2025. (source: World Economic Forum)
The Association of International Certified Professional Accountants predicts that by 2024, 89% of accountants' tasks will be automated, allowing accountants to focus on higher value-added services. (source: AICPA)
The rise of the gig economy has created new challenges for accountants, with the number of self-employed workers in the US increasing from 10.6 million in 2005 to 15 million in 2019. (source: US Bureau of Labor Statistics)
The role of accountants in strategic decision-making is becoming increasingly important, with 87% of CFOs saying that they expect their finance function to play a more strategic role in the future. (source: Deloitte)
Advisory services are becoming a key area of growth for the accounting profession, with revenue from advisory services growing at a rate of 6.9% in 2019, compared to 5.6% for audit and 5.1% for tax. (source: IFAC Global SMP Survey 2019)
These statistics and facts highlight the significant changes and opportunities facing the accounting profession, and underscore the importance of accountants staying ahead of the curve and developing new skills to remain relevant and valuable to their clients.
In conclusion, the accounting profession is facing significant challenges, but also significant opportunities. As businesses and organizations continue to evolve, accountants must adapt to new technologies, regulations, and business models. By developing new skills, providing strategic insights, and offering advisory services, accountants can add significant value to their clients and play a critical role in their success.