How technology is changing the face of accounting

THE Malaysian government has estimated that 28,000 more accountants will be needed in the country in the coming years. At the same time, the rate of change in technology means that it is hard to predict what is going to happen in the next 10 or 20 years, but many predict that the world of work is going to change in a very big way due to innovations such as automation, artificial intelligence, and cloud computing.
According to some, accountancy jobs will be among the changes these innovations will bring, as they could take over many tasks that would usually be performed by accountants. However, while new innovations will definitely mean a shift in the way accountants do their jobs, technological changes could well prove to be a benefit to the profession instead of a threat.
Automation is where simple tasks such as entering data, creating electronic documents, and producing receipts can be taken over and done by software. This could be perceived as a threat to accountants who would normally take responsibility for creating them; however, when used correctly, automation should increase the effectiveness and efficiency of financial processes, leave accounting professionals with more time to focus on higher level tasks such as building client relationships, advising clients, and adding value to the services they provide. It should also help reduce mistakes, by removing the risk of human error.
Linked to automation will be growth in the use of artificial intelligence (AI). In finance, AI could be used to look at the past behaviour of clients to gain insights and analyse their future needs, such as cash flow for example, then enable accountants to use these insights to give more tailored advice.
AI can also be used to create computer programmes which customers can connect with to do things such as ask questions about their accounts. The Malaysian software company ABSS has already produced Financio, a tool for small businesses which can create invoices, issue invoices, and record payments and expenses. More software like this will surely follow and become more commonplace.
Cloud computing is another innovation, and has already started to filter through to accounting professionals with software such as Xero and Quickbooks. When AAT asked our members in a conference how many of them had heard of accountants using cloud computing three or four years ago, there were probably only five people with their hands up.
When asked again last year, 65% of the audience said they are already using it, which clearly illustrates that this is an innovation which is already upon us. It radically changes the way professionals store data, collaborate with clients and each other, and gather information.
With cloud computing, clients are able to upload their files, and their accountant will be able to work on the client’s account from anywhere in the world.
Accountancy will see many changes in the next few years, which could hurt businesses that are not prepared. For individuals in the accounting profession, it is essential to make sure you have the right skills to ensure that you can adapt to any changes, and continue to keep upskilling yourself.
Skills which will definitely be important will be softer skills such as communication skills and presentation skills, which will help when advising clients, and computing skills which will help professionals learn new technologies.
The future seems harder to predict every day; however it will be an exciting one for accountants, with the use of technology freeing professionals to concentrate on other more interesting and important tasks, such as advising businesses on how to grow and succeed.
This article was contributed by Justin Kyriakou, International Development Manager, AAT (Association of Accounting Technicians)