Change, as with what the old adage says, is a constant thing in our world.
Regardless of how people wish to respond to it—whether it be with peaceful acceptance or with biter resistance—it will remain a part of the journey and it is a given fact that we should be able to ride on to continue and carry on.
For the accountancy profession, transformation has always been a part of the process, let alone the manner of life. Without the evolution, operations and procedures within organisations will become obsolete and will even hamper both critical and mundane undertakings.
It is for this reason that embracing change becomes a necessary step towards success for any organisation or company.
Andrew Harding, FCMA, CGMA, Chief Executive of Management Accounting at the American Institute of Certified Public Accountants & Chartered Institute of Management Accountants (AICPA & CIMA), believes it is important to embrace the rapidly accelerating change in the accountancy landscape.
No longer sufficient
In an interview with India's The Economic Times, the Association of Chartered Certified Accountants (ACCA) chief executive officer, Helen Brand, said there is a need to "supercharge" the accountancy profession amid a lack of accountants in all economies.
Although this is still "okay", as Brand noted, she warns that this could result in a major issue in the coming years.
Brand said there is a challenge to the attractiveness of the accountancy profession because of current alternative opportunities in the fields of digital and consultancy space, along with tighter regulations, particularly in auditing.
For Harding, the accountancy profession, through its history, has continually adapted and seized future opportunities.
“A reliance on traditional accounting skills alone is no longer sufficient to meet the needs of stakeholders,” Harding says, “Accounting and finance professionals must broaden their digital skills, broaden their enterprise and business model knowledge, and understand risk in areas such as cybersecurity and supply chains.”
The role of technology
According to a professional insight from AICPA & CIMA, integrating artificial intelligence (AI) and robotic process automation (RPA) into the finance function presents practical workflow and security applications for accounting professionals, making this one of the top trends in 2024.
Outdated work practices, such as paper-based systems, hinder workflow and company progression, and companies can get new ideas and fresh perspectives that challenge previous ways of doing things by embracing updated processes, allowing them to reach business goals and stay competitive in today's dynamic economy.
Harding explains that there is a need among accounting professionals to be able to question constructively, guide strategic decision-making, manage risks, seize opportunities, and implement projects, whilst being the stewards of trusted and reliable management information.
“Adopting AI will be a great enabler to complement the skills and attributes of accountants, putting finance teams in the driving seat of company strategy and decision-making,” he says. “To be successful requires being open to a digital mindset and embracing the philosophy of learn, unlearn and relearn.”
The AICPA & CIMA executive points out that AI is another opportunity for the profession, and those who embrace it will be successful.
Harding also added that emerging technologies, like AI, RPA, and machine learning will have the most significant impact as these are increasing the accountancy profession’s efficiency.
“Accounting and finance professionals must embrace technology,” says Harding. “The profession needs to equip themselves with an innovative and life-long-learning spirit in order to best utilise these changes.”
The evolution of the profession
“Before the coronavirus pandemic hit the world, new and emerging technologies and changing stakeholder expectations driven by ESG issues were pushing finance teams to broaden their roles and become more agile,” says Harding.
“However, since late 2022, change has accelerated exponentially through the maturing of AI… specifically, the GenAI.”
Harding explains that the introduction of this technology, combined with human capabilities, is set to drive a new productivity revolution for the accountancy profession.
As the structure of the accounting and finance profession continues to evolve, they are presented with both new opportunities and threats.
Harding says time could be dedicated to activities that drive performance, deliver value, and bring new strategic insights to the decision-making process to seize the opportunity to adapt and upskill.
“Continued innovation ensures the long-term resilience of the profession and organisations finance teams serve,” Harding says. “Accounting and finance professionals are in a great position to seize the future.”
Challenges along the way
As for the major challenges accountants are expected to face in 2024, Harding points to a variety of concerns: political uncertainty, inflation, and the rise of technologies.
To get through and manage these challenges, Harding explains that accounting and finance professionals need to be open and flexible in adopting new ways of working and investing in their skills.
For him, accounting and finance professionals must:
- Commit to learning, unlearning, and relearning and expanding skills to include both strong
technical and soft skills to thrive now and in the future. - Grow a digital mindset to embrace digital transformation in finance. They must prioritise
technology implementation and training on digital skills. - Get comfortable with ESG matters. There is a greater emphasis put on evolving
corporate reporting to reflect long-term value creation.
Moreover, Harding believes that accounting and finance professionals play a key role in improving their organisations’ integrated thinking capabilities and enabling them to face these fast-evolving challenges.
