For accountants around the world, the impact of innovation has been largely positive so far, with many tasks being streamlined or automated. The key to further enjoying this industry-wide progress is to avoid the dreaded “c-word” — complacency.
With new and intuitive financial applications popping up seemingly every day, the role of a CPA is slowly shifting from that of a manual number-cruncher to that of a holistic strategist. Those who keep up with this shift in duties will thrive, but the same may not be said about those who stick to their traditional role. Does responsibility solely fall on accounting professionals, though? Absolutely not. The onus also lies on the organizations hiring CPAs, and the universities educating them, too.
A fairly common experience for entry-level accountants fresh out of school is the shock of learning about the wide variety of software tools being used by companies that are simply not discussed in university curriculum. It’s a classic case of professors and textbooks being behind the times — a phenomenon similar to, “The teacher won’t let me use a calculator on this exam, even though I can use a calculator in real life.” Fortunately for today’s fresh-faced accountants (and really for all accountants looking to adapt), many developers and industry applications provide resources that assist in learning and integrating their programs; as an example, Xero offers a free online certification program. That doesn’t remove the responsibility for the accounting departments at universities to recognize the opportunity they have to rethink the courses they offer and to consider a more tech-inclusive approach to educating the next generation of CPAs.
At the organizational level, there is also plenty of incentive to train CPAs on the job when new technologies or apps hit the mainstream. Not only does it benefit them in the long run with a more informed and efficient accounting team, but it showcases a willingness to invest in talent — a highly-sought-after trait in this employee’s job market.
Before a business can embrace a culture of learning for employees, though, those at the top must be ahead of the curve strategically. The dawn of cloud technology has left some straggling businesses under-equipped to keep up with the evolving accounting profession and employee expectations. While organizations should be prepared to train their employees on emerging financial technology, many are woefully unprepared to adopt the technology. Taking this first step to embrace a tech-first mindset from the top down, any organization can entice top talent while riding the wave of innovation that’s revolutionizing the industry.
Speaking of current economic and labor conditions, one trend that’s becoming a fixture for small businesses is the emergence of the fractional CFO, wherein the CPA and accountant become long-term strategic advisors to their clients. Through tools that automate accounting functions, these engagements can become efficient, wherein the CPA spends their time advising versus doing manual work. As we look to evolve in stride with the finance and accounting industry’s tech landscape, accountants can definitely take on the role of a fractional CFO, but it requires a change in mindset away from accounting strictly as a compliance position but as a value-added service and a consultancy.
While institutions bear much of the weight for the future success of the accounting profession, we must take responsibility as individuals over our careers, to develop the skills most valuable for a smooth transition away from compliance to strategy:
- At the most basic level, accountants should be proactive in honing their hard tech skills. This means doing their due diligence to keep up with trends and learn new skills and programs when they have free time. While it’s an added benefit if their employers accommodate this, some must venture on their own in order to succeed.
- Change management is becoming a vital soft skill for accountants, as it makes the constant transitions to new technologies and environments more manageable. It is especially valuable for positions of authority, as well-learned CPAs in higher positions can help to guide others through evolving practices and workflows.
- Strategic thinking is the name of the game in tomorrow’s accounting ecosystem. For a long time, accountants have had a “hockey stick relationship” with their clients, only meeting with them during tax/reporting season. Accountants should take the time to think strategically about their client relationships so they can develop them into a more constant, advisory based and collaborative partnership.
With technological advancements moving fast in the accounting profession, CPAs need to embrace the new opportunities being presented to them. There is plenty of room for growth, but only for those who are willing to embrace change and adopt a new culture of accountancy.
