As economic conditions continue to change, so does the nature of work and operations of the companies. In order for accountancy to remain relevant and occupy top tier of accounting occupations across the globe, it must adapt the changing needs and circumstances.
Accountancy is a very volatile field. The skills required to be a future ready accountant in any given decade will be different from those required today. Along with these differences come various trends that are shaping the future of accountancy. Gone are the days when an accountant just had to be able to handle basic bookkeeping and financial management. Present times accountancy job requirements are significantly more diverse.
Today’s accountancy job call’s you to understand not just traditional accounting principles, for example – double entry bookkeeping. However, the profession requires advanced analytical techniques like big data analytics, decision-making, financial engineering concepts and financial reporting etc.
The accounting profession has changed significantly over the past few decades. Many new skills are added to the job description and are continuously being added. In fact, many accountants today have found that their current roles require them to be “hybrid” accountants—individuals who are skilled in both traditional and modern forms of accounting.
These changes in course will have implications on how you, as an accountant, prepare yourself for the future. Therefore, presenting us with an opportunity to become more future ready.
The future of accountancy will be constantly evolving at a rapid pace. This constant evolution will present a unique set of challenges and opportunities for both businesses and accountants. Our article explores some of the trends and offers suggestions on what skills are needed by future-ready accountants.
Changes in the accounting function in the future of Accountancy
The accounting function is likely to undergo significant changes in the future as the industry continues to evolve. Some of the key trends that are likely to shape the accounting function in the coming years include:
- Increased use of technology: The accounting function is already heavily reliant on technology. This trend is also expected to continue in the future. Accountants should be comfortable working with various software and tools. This will include cloud-based accounting software, data analytics and visualization tools, and artificial intelligence and machine learning.
- Greater emphasis on data analytics: The volume of data keeps growing as the businesses thrive. The ability to interpret and analyze large data will become increasingly important for accountants. This will require strong analytical skills and the ability to work with large amounts of data.
- Globalization: The accounting industry is becoming increasingly global. Where accountants will require working with clients and colleagues from a variety of different cultural backgrounds. This will demand in high communication skills and ability to adapt different business practices and regulations.
- Changing business models: The rise of new technologies and business models is likely to lead to significant changes in the accounting function. Accountants will need to be adaptable and able to learn quickly in order to keep up with these changes.
- Increased focus on ethics and professionalism: The accounting industry is facing increased scrutiny. Therefore, there is a greater emphasis on maintaining high ethical standards. This will be critical for the future of the accounting function.
Skills Of The Future Accountants to match Future of Accountancy
Currently, accountants and finance professionals are expected to master numerous types of skills to perform much more complex operations. If you’re focused on becoming an accountant and attempting to make the most of your job. Below are a few key skills you may want to consider:
Emotional Intelligence: This refers to the ability to understand and manage one’s own emotions, as well as the emotions of others. For accountants, emotional intelligence is crucial for teamwork, leadership, and building strong client relationships. It involves self-awareness, self-regulation, motivation, empathy, and social skills.
Communication: Effective communication is essential for accountants to convey complex financial information in a clear and understandable manner. It includes listening, speaking, writing, and presenting. Accountants must be able to communicate with a diverse range of stakeholders, including non-financial colleagues.
Honesty and Integrity: These are foundational ethical principles in accounting. Honesty involves being truthful in all professional dealings, while integrity means upholding ethical standards and making decisions that are fair and just. Accountants must maintain these values to ensure trust and reliability in financial reporting.
Leadership: Leadership skills enable accountants to guide teams, make strategic decisions, and inspire others. This includes the ability to delegate, motivate, and develop a vision for the future. Accountants with leadership skills can effectively manage change and drive business growth.
Flexibility: The ability to adapt to changing circumstances and environments is known as flexibility. For accountants, this means being open to new ideas, willing to learn, and able to adjust to new technologies and regulations. Flexibility is key to staying relevant in a dynamic business landscape.
Tech Savviness: As technology continues to evolve, accountants need to be tech-savvy. This includes proficiency in accounting software, data analytics, and understanding the impact of emerging technologies like AI and blockchain on the accounting profession. Tech savviness allows accountants to improve efficiency and provide better insights.
How accountants can help with decision making for the business
Accountants play a critical role in helping organizations make informed decisions by providing accurate and timely financial information and analysis.
One way that accountants can help in interdepartmental decision-making is by providing financial projections and budgeting assistance. This includes creating financial projections for future periods and helping departments to develop to budget plans. By providing this information, accountants can help departments to make informed decisions to allocate resources and make investments.
Accountants can also assist in decision-making by providing insights into the financial performance of the organization. This includes analyzing financial statements, conducting profitability analyses, and identifying areas of improvement. By providing this information, accountants can help departments to make decisions about how to improve the financial performance of the organization.
In addition to these tasks, accountants can also assist in decision-making by providing advice on financial matters. This can include helping departments to understand the financial implications on actions and providing guidance on financial reporting requirements and compliance issues. By providing such advice, accountants can help departments in making decisions that are in the best interests of the organization.
Accountants play a vital role in helping organizations decision making by providing advice that are aligned with its financial goals and objectives.
Conclusion
To conclude, it is clear that the skills of accountants are evolving over time and will continue to do so. This evolution reflects the changing nature of accounting jobs. The complete range of competencies required by accountants will need to be strong to succeed in their careers.
In the modern era, accountants must be able to work with a wide range of technologies and software packages. They also must possess strong communication skills in order to effectively communicate financial concepts and results with other professionals within their organizations.
The future of accountancy is one that is driven by technology, data analytics, and the need for skilled professionals who can adapt and learn quickly. To be future ready, it is essential that you have a strong foundation in technology, excellent analytical skills, and the ability to communicate effectively with clients and colleagues. Additionally, you will need to be able to adapt to new technologies and business models and maintain a strong focus on ethics and professionalism.