In the evolving landscape of the digital economy, automation and artificial intelligence (AI) are redefining the traditional roles within various industries, particularly in accounting and bookkeeping.

This shift is not just about replacing human effort with machines but enhancing the capabilities of financial professionals with new tools and technologies. As we delve into this transformation, it becomes clear that the future of accounting is not about displacement but evolution.

The advent of automation in accounting

The integration of automation in accounting has been both rapid and revolutionary. According to a report by McKinsey, about 50 per cent of current work activities in accounting could be automated by 2030, using existing technologies.

This seismic shift is largely driven by software that can handle tasks ranging from data entry and analysis to complex compliance management. The result is not only a reduction in the need for manual input but also an increase in efficiency and accuracy.

Also Read: The future of fintech innovation will be a constant dance between progress and security: AND Global

AI and machine learning further extend these capabilities by enabling systems to learn from data and improve over time, thus identifying trends and anomalies that would go unnoticed by the human eye. A study by Accenture found that AI could increase productivity in accounting tasks by up to 40 per cent, underscoring the substantial impact of these technologies.

Reshaping roles and responsibilities

As mundane and repetitive tasks are automated, the role of accountants and bookkeepers is shifting towards more strategic functions. This transition means that professionals in the field are now expected to focus more on interpreting data, managing risks, and advising on business strategies rather than just crunching numbers.

For entrepreneurial accountants, automation opens new avenues. Starting a bookkeeping business today means leveraging technology to offer more value-added services. Automated tools can handle day-to-day record keeping, allowing business owners to focus on providing clients with actionable business insights and customised financial consulting. This shift not only increases the potential client base but also enhances the quality of service, setting a foundation for competitive advantage.

For instance, with the advent of AI-powered analytics, accountants are now instrumental in providing insights that help shape business decisions. A survey by the Institute of Management Accountants (IMA) revealed that 45 per cent of accounting professionals believe that their role now involves more strategic planning than ever before.

Also Read: From crunching numbers to transforming data: How I made a career switch from accounting to tech

New skills for a new era

The demand for new skills is perhaps the most significant change brought about by automation. Accountants and bookkeepers need to be not only numerate but also technologically adept. Proficiency in data analysis software, understanding of AI applications, and skills in cybersecurity are becoming as fundamental as traditional accounting expertise.

Moreover, as businesses increasingly look for value beyond number-crunching, soft skills such as strategic thinking, communication, and leadership are becoming crucial. Accountants are expected to act as business advisors who can articulate financial insights and influence decision-making processes.

The impact of automation on accounting jobs is profound and multifaceted. While it brings challenges, particularly in terms of required skills and changing roles, it also offers substantial opportunities for those willing to adapt.

By embracing these changes, accountants and bookkeepers can transcend traditional boundaries, delivering more strategic value and steering their careers towards more fulfilling and impactful directions.

In the era of automation, the accountants who will thrive are those who view technology as a tool for enhancement rather than a threat to their profession. As the industry continues to evolve, the most successful professionals will be those who can harness the power of AI and automation to redefine what it means to be an accountant or bookkeeper in the digital age.

—

Editor’s note: e27 aims to foster thought leadership by publishing views from the community. Share your opinion by submitting an article, video, podcast, or infographic.

Join our e27 Telegram group, FB community, or like the e27 Facebook page.

Image credit: Canva

The post The future of numbers: Automation’s transformative impact on accounting jobs appeared first on e27.