The ongoing technological revolution that is reshaping industries of all kinds has been both a boon and a looming existential crisis in the accounting field.
Supercharged processing tools have shifted the work of a profession built on repetitive manual tasks from workers to artificial intelligence, cloud computing and blockchain tech — good news for businesses seeking improved efficiency, accuracy and security, but an understandable scare for those whose traditional labor has been turned over to the machines.
But digital transformation isn’t the stuff of a “Terminator” film. It is, as the phrase suggests, a rejiggering of responsibilities — one that will allow accounting professionals and their businesses to improve the speed and accuracy of collecting, categorizing and storing data so that they can turn more of their attention to the critical human tasks that machines, for all their computing muscle, can’t hope to match.
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Accountants are hardly the only professional group resistant to change, but because of the nature of the field — whose backbone is made up of longstanding firm processes — they may be particularly averse to a shakeup. But as the world increasingly embraces advanced digital technologies, expectations around all businesses are evolving. Clients demand greater speed and accuracy than ever. New compliance and regulatory standards are forcing companies to track and benchmark data more reliably. Spreadsheet printouts and manila folders can no longer keep up. So how can accountants step confidently into this brave new world?
Relationship between tech and compliance
Compliance processes are changing with the times — and, specifically, with the tech. It’s a bit of a chicken-and-egg relationship, but suffice to say that as digital technologies have influenced the approach and expectations of compliance regulators, the reverse is true as well. The accounting field, in other words, is being pushed to level up its tech game — like it or not.
In this new reality, processing speeds and accuracy are important, as are storage and security. But at the end of the day, we’re talking about data integrity. With the IRS and SEC grabbing a tighter hold on the reins and more stringent ESG standards and regular FASB updates creating greater demands on businesses, visibility and accountability are more critical than ever before. Adherence has become overwhelmingly difficult to ensure, let alone prove, without the assistance of a modern tech stack and software.
And regulators aren’t the only ones with expectations. Clients and vendors also seek out tech-enabled partners. SOC 2 accreditation has value, building trust with both customers and partners. Digital technologies help accountants compete in the marketplace, insured by operational support and freed up to provide white-gloves advisory service — rather than being shackled to data processing behind a desk. Digital transformation may seem daunting, but the improvements around data and transparency that come with it can elevate business operations to new heights.
The human element in technology adoption
Overcoming the fear of worker job loss is just one aspect of the broader human component in the accounting field’s halting transition to a digital future. A general aversion to new technologies, although understandable, is a bottleneck. Many accountants and companies have been failed by technology investments and software in the past, leading to a general mistrust in digital transformation or even nominal tech adoption. This leads many firms and businesses to seek accounting help only when they are overworked and understaffed — when it may be time-prohibitive or simply too late.
It’s a problem that only figures to grow. The accounting field is facing a shortage of workers as younger generations seek out other professions and many members of accounting’s old guard have yet to re-skill to adapt to technological advances in the field and the new soft-skilled advisory requirements that come with their evolving responsibilities. Moving forward, the importance of human partnership in technology adoption will become even more pronounced, as the trend of accounting firms merging to create megafirms will force stakeholders to make very human decisions about scaling operations.
For the accounting field, the benefits of digital transformation far outweigh any drawbacks or fears that accompany it, and increasingly AI-driven technology and general automation are becoming the norm — an expectation from clients, partners and regulators. But the ideal processing and handling of data today requires a unique approach combining modern technology and old-school human traits. Machines are only part of the solution. A partner-like approach that creates value for clients — one that secures and optimizes data with modern tech tools while allowing workers to focus on personalized service leading to growth and productivity — is the real accounting wave of the future.
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