The Future of Accounting Jobs : Automation and AI

Rapid advancement in technology has led to the drastic fall in demand for human labour in a number of sectors - manufacturing and retail. While these changes have their benefits, it raises the question of job security. So, are accountants soon to become irrelevant in light of automation? Is the period when there will be no need for accountants nearing us? Should aspiring accounting graduates and current accountants be looking at a career change?

The short answer is : not necessarily.

Is Automation A Threat?

It’s important for us to revisit the role of an accountant with regards to this. That is, auditing, budgeting, computing taxes and forecasting, among other responsibilities. With automation and the continuous upgrading in AI, routine accounting tasks have and will continue to phase out of a traditional accountant’s purview. The use of robotic process automation (RPA), a software that performs rules-based tasks, allows for repetitive tasks to be automated. This could include data entry, bookkeeping duties and compliance checks. This need not be a cause for concern as these tasks that are automated could be a good thing, as touched on below.

Though such traditional accountant roles are being governed by technology, it does not necessarily mean accounting jobs will see its end. This may be backed by the 4% projected increase in employment of accountants from 2022 to 2032 by the US Bureau of Labour Statistics. It does, however, expand the role of an accountant beyond numbers, embracing technological innovation. Accountants are now able to assume a more managerial role since the more tedious responsibilities, as aforementioned, are automated, allowing accountants to focus more effort on the bigger picture. Advisory roles are also gradually forming a big part in an accountants duty as the global consulting market is projected to expand between 6% to 10%. We are also able to see evidence of this role expansion by taking a quick look at the Big Four’s sources of revenue, in which advisory revenue when aggregated across the firms have more than doubled since 2010 ($39 billion to $94 billion in 2022), while traditional auditing has comprised an increasingly smaller portion.

The automation of some roles of accountants also serve as a push towards upgrading skill sets, allowing individuals to evolve alongside technology. In order for current and future accountants to remain relevant and in demand, it is crucial for us to be more tech-savvy and analytical for one.  We are now expected to provide ‘value-added services’ to clients, which could look like providing advice on risk management and business strategy  specific to said  businesses based on the numbers produced by AI. A very close example is Accounted, where we offer services that range from consulting to business planning.

Challenges

The use of artificial intelligence in the world of accounting is not without its issues. One significant threat with the use of technology is the higher risk of cyberattacks. The interconnectedness of internet networks means there is a separate avenue for cyber threats.

Key Takeaway

It is safe to say that automation should not be seen as the executioner of accounting careers, but a “transformative force” instead, presenting new opportunities. The integration of technology into those repetitive tasks also significantly reduces human error (typos, miscalculation, data entry error). However, it is worth highlighting that individuals who are able to adapt to these new roles and attain the relevant skills, will be able to keep up with automation and technology being employed in this profession.

Written by Faith Fernandez