As we march onward into the future, the accounting profession faces a rapidly evolving landscape marked by technological advancements, changing regulations, shifting client expectations, and new skill sets. Like many other professions, accountants must navigate an increasingly complex environment to stay relevant and competitive in the market. By being proactive, however, you can adapt to these challenges and thrive.
A Lack of Financial Literacy
Since Covid and the rise of the remote workforce, the work of an accountant has become nearly entirely digitized. One of the most significant challenges for accountants is mastering accounting software and operating effectively within a cloud environment.
Additionally, the ability to store and analyze financial data using various software has become increasingly important. Even knowing which digital accounting tool to use or how to navigate a series of dashboards may cause accountants to become flustered, preventing them from obtaining a comprehensive financial overview of a business and providing a solution.
Rapid Advancements in Technology
If you haven’t been paying attention to recent leaps in artificial intelligence, such as ChatGPT, it’s time you perked your ears up. We’re at the beginning of an AI revolution that will change nearly every aspect of our lives, and if you don’t start adapting to AI tools now, you will be left behind, especially those in entry-level positions.
Besides securing your own job, utilizing these new technologies will enable you to streamline your tasks, improve your work efficiency, reduce mistakes, and improve your ability to detect fraud. As these technologies will easily handle the most tedious tasks, accountants will need to focus on higher-level tasks and strategic decision-making, requiring a shift in skill sets and education.
Changing Tax Laws and Regulations
It’s challenging to closely watch the ever-changing tax laws and regulations, especially considering you must stay pace with state, national, and maybe even international laws. On top of that, you must fully grasp their implications on your clients’ and your own finances. And things will only get more complicated from here. We may see massive shifts in attitudes to taxation due to evolving social stigmas in reaction to widening wealth disparities and the introduction of AI-produced labor.
New technologies like cryptocurrencies and digital assets only further muddy the waters. It can be exceedingly difficult to understand how the IRS treats a digital asset if you have no concept of what it is, such as an NFT or a property in the metaverse.
Changing Skill Sets
The accounting profession is undergoing a transformation. The need for traditional accounting skills, such as bookkeeping and data entry, is decreasing due to technological advancements. However, a growing demand exists for accountants to possess analytical, strategic, and advisory skills. This shift is driven by the changing needs of clients and employers who increasingly seek accountants capable of providing valuable insights, guidance, and strategic decision-making support. Accountants must adapt their skill sets to changing realities, expectations, and demands to stay relevant and successful.
ESG Reporting
For example, sustainability and environmental, social, and governance (ESG) reporting are increasingly important. Whether through increased customer demand as companies strive to reduce their environmental impact or because of the inevitability of governmental regulations, CPAs have a whole new sphere to face and adjust to.
Cybersecurity
Cybersecurity is another enormous issue for accountants. As the wave of digitization continues, the risk of cyberattacks and data breaches also rises. Companies expect their CPAs to be aware of potential vulnerabilities in their accounting software and cloud services, identify security flaws in their financial processes, and safeguard sensitive financial data. It’s also essential to educate clients about your communication procedures – social engineering, such as pretending to be someone else, is one of the most common methods in breaching cybersecurity systems.
CPAs must also ensure their own practices are secure as well. Collaborating with an IT professional is vital to help implement authentication procedures, securely store data, and perform regular security audits. Putting this on the back burner only leaves your firm and personal finances vulnerable.
In Conclusion
None of the solutions of the issues CPAs face in this article are unobtainable or unachievable, especially with an ever-expanding array of free tools and resources that can help you adapt to this new world of heightened technology.
Considering the seriousness of the issues CPAs face and how important it is to stay on top of it all, we highly recommend getting acquainted with these new technologies and choosing a few you find interesting to learn more about and become proficient in. Rather than seeing these advancements as a threat, you should understand they’re not going away. Instead, think of these new technologies as tools that can turn each CPA into a better version of themselves, thus in greater demand.
