The world in 2022 looks astoundingly different from the world of 10 years ago, never mind 20 or 100! The rate of change in technology is exponential. And inevitably, this spills into the world of accounting, transforming business’s expectations of their accountants – and their demands. With so much data available, we are capable of making far greater business decisions, but equally capable of being completely overwhelmed by the data. This is where accountants of the future can help out.

In our series on the future of accounting, I spoke to a number of experts in the field of finance and accounting, tackling issues surrounding the sheer quantity of data available today, the changing requirements and expectations of accountants, and the kind of skills that accountants will need to work on in the future.

For this article, I spoke to Ken Brown, Founder of SME.TAX, about his insights into what the future of accounting may look like. Read on for all the details.

The first question I asked Ken was: What are some of the biggest changes you’ve noticed in accounting over the past few years? His response was, “The increase in automation and the amount of apps makes accounting processing easier.” Ranging from accounting providers like Xero, QuickBooks, and Sage to dedicated reporting and analytics apps like Syft Analytics, there’s no doubt that apps abound that help with the processing of financial information.

However, adoption of cloud technology is not yet universal. The expectation is that in the next 5-10 years, more accountants will digitalize their practices, and new accountants may well be fully digital from the get go.

Given the changing landscape, accountants are going to need to develop some new skills and competencies to remain competitive. As Ken says:

“Due to the automation of accounting, they need to improve their people skills and advisory knowledge, expanding from just recording data to interpreting and advisory services.”

Certainly all the research I’ve done points in this direction. As ACCA Singapore’s report on the Market demand for Professional Business and Advisory Services Singapore, ASEAN region and China found:

“Simultaneously, enterprises are increasingly turning to professional services firms, beyond compliance requirements, to seek business and advisory services, so as to manage risks, keep pace with changing trends, and grow new revenue streams and markets.”

While regulated professional services such as audit and assurance services will always be required, the report finds that “the rise in demand for business advisory, beyond compliance and regulatory requirements, is growing [significantly]” and the transition to advisory services is taking on a new level of urgency as firms adapt to changing trends and business expectations.

And when it comes to taking on advisory roles, accountants need to be able to communicate effectively to tell the story behind the numbers so that their clients can make better decisions with their financial data.

When I asked Ken about the ways in which his clients' expectations had changed, he told me, “There has been a shift and, due to the easy access to the platforms, they are more involved and require more data.” This is perhaps the inevitable side effect of accounting software like Xero operating in the language of businesses rather than accountants. Business owners are now more involved in their accounting data and want to know more about what’s happening in their businesses and how they can improve their profits and grow.

ACCA Singapore’s report also found that in terms of service delivery, companies value quality, relevance, and timeliness of advice over and above all else when receiving support from their accountants.

In recent years, we’ve seen an increased demand for instant delivery and maximum convenience for consumers, and there’s no reason why this shouldn’t bleed into what’s expected of accountants. Perhaps the best way to deal with this is to leverage the latest technology.

Keeping up with the Joneses was one thing when the Joneses were just your next door neighbors. What happens when they’re robots and other technological systems? We are living in what’s touted as the Fourth Industrial Revolution, an age in which business is expected to be metamorphosed by cyber-physical systems from Big Data to increased computing power, AI, and the intelligence of things across interconnected devices.

As one Forbes article puts it, “When the internet of things, the system of interconnected devices and machines, combines with artificial intelligence, the result is the intelligence of things.” And the result is the increased ease with which patterns can be identified, issues resolved, and accounting activities such as audits, inventory tracking and inventory management, can be streamlined. Ken cites “Keeping up with automation and understanding data from all the new systems on the market” as some of the biggest challenges facing the accountants of tomorrow. He also stresses that, “Assisting in the advisory role will be crucial.”

There’s definitely a theme in recent times of concurrent fear and appreciation for all that automation and AI have to offer us. How many articles have you read about how robots are going to steal your job? Or make you redundant? However, robots cannot replace the human touch, the vital element of translating data into understandable and actionable insights. The tricky part of being an accountant going forward is likely to be keeping up with all the advances in tech and figuring out how to leverage the latest tools to give clients the best possible service.

The Internet of Things (IoT) is a network of interconnected physical devices that are embedded with technology, sensors, and other kinds of software. These things connect and exchange information with other devices and systems across the internet. The IoT is the technological landscape we’ve been talking about throughout this article, the world in which processes are increasingly being automated and many repetitive manual tasks are being assumed by technological objects as opposed to humans.

Business Insider predicts that in just three years’ time, there will be 65 billion IoT devices around the world – six times more than there were in 2018! As the IoT becomes more prevalent across industries, it will inevitably filter into the world of business and accounting, as we have seen from the use of smart software with AI and machine learning capabilities and cloud storage. Cloud-based IoT applications allow businesses to improve their processes.

And one of the biggest, most noticeable devices that’s part of the IoT is sitting right in your pocket.

When I asked Ken what he thought accounting would look like in the next 5 or 10 years, or even further in the future, he responded:

“Accounting will look awesome and you will be able to pull reports and analytics off apps on your cell phone (happening now but evolving monthly).”

The future of accounting is an exciting one in which you will be able to access vital information at the tap of a button. Part of this has already come to pass. However, given the current pace of technological development, it’s likely to be even easier to do this. And we will, no doubt, have access to much more data than we do today. And imagine how great it would be to have all these powerful apps on your phone, just sitting in your pocket for you to check at any time in the day!

I thought I’d take a quick look at what accounting apps are already available on your mobile phone. Here are a few that I found:

And I have no doubt that this list will continue to grow.

Accounting Today collected some of their favorite advice from accountants to accounting students into an article a few years ago. Here are five of their top tips:

When I asked Ken what advice he would give to students of accounting today, he said it would be this:

“Even with all the advancements in the processing of data by systems, the accountant will play a big role in the future of accounting, as the systems need to be checked and processed properly.

Future accounting will need expanded knowledge of basic accounts, processing, using technology, and deciphering the knowledge that will be available to the clients, as well as advisory.”

Accounting is no longer just about compliance or bookkeeping; tomorrow’s accountants will need to straddle the line between accountant and advisor, be tech-savvy, and know how to communicate key insights to clients in language that is accessible to even those clients who know very little about accounting.

His lifelong entrepreneurship journey coupled with his tax knowledge makes him indispensable when ensuring new business owners understand what is expected when they undertake their journey. Ken has first-hand experience in a multitude of industries – power generation, manufacturing and retail.

Qualification: Tax Technician (SAIT) & Certificate in Taxation (UNISA)

For previous articles in our series, take a look here:

​