For years, business pundits have predicted the demise of the accounting profession as technology replaces work traditionally performed by the industry.
accounting
Description
For years, business pundits have predicted the
demise of the accounting profession as technology replaces work traditionally
performed by the industry. According to The Hackett Group, since 2004 the
median number of full-time employees in the finance department at large
companies has declined 40 percent, to about 71 people for every $1 billion of
revenue.
The CPA profession acknowledges that the accounting skill set is changing, but
the need for specialists in financial reporting, auditing, tax, and advisory
services remains strong. For example, Wolters Kluwer N.V. uses Oracle’s
Hyperion software to close its books in half the time it used to. “With fewer
workers needed to collect financial information, Wolters Kluwer is hiring more
analysts to help sift its data on profits, revenue, and cash flow, among other
things, to help in planning and forecasting.”1
Many fear that machines will replace people. That might be the case for routine
accounting tasks, such as bank reconciliations and invoice payments, but new
opportunities have emerged. As artificial intelligence becomes more accepted in
the workforce, it can be an essential partner. Artificial intelligence will not
replace CPAs; rather, their duties, responsibilities, and contributions will
change for the better. Artificial intelligence will eliminate certain
day-to-day tedium, freeing up CPAs to work where human attentiveness is needed,
adding value to the business.
We are at a point where accounting automation is the major technological
innovation that will impact everyone working in the profession. This article
explores components of this technology model and assesses factors limiting its
current use, opportunities for the future, and skills needed for those working
with innovative technology.
Defining
Accounting Automation
