Technology has developed at an exponential rate with the number of smart devices collecting, analyzing, and sharing data expected to reach 50 billion by 2030. The computing and processing capacity of computers hits double figures every year and a half, and the world produced 90% of its Big Data in the last two years alone.

It’s therefore unsurprising that technology has changed the way in which we process and analyze financial data, and that it’s transforming the practice of accounting.

For this article, I spoke to Greig Sinclair, Director of Hobbs Sinclair about the ways in which he envisions the future of accounting as one in which outsourcing and remote work are the norm and the sharing of information becomes a potentially contentious issue. Read on for more detailed insights.

Over the years, there are certain fundamental aspects of accounting that have stayed constant, and alongside these constants, is the usual trade-off of time vs. accuracy.

"Accounting is a set of rules, a double-entry system. Everyone has agreed to it for a couple of hundred years and it hasn't changed. But ultimately, as accountants, we provide information, and that information is to a real benefit. It's either timeous or it's accurate and there's always a trade-off. The more accurate you want something, the longer you wait. And the quicker you can get reliable information, the quicker you make decisions.” - Greig Sinclair, Hobbs Sinclair

Today, there’s a great deal of emphasis placed on access to real-time information, and technological developments have meant that it’s easier than ever to access that information and access it quickly.

Providing that information to clients in a way that is understandable and accessible is a big part of what accounting professionals do. As Greig says, “We service the people within an organization to provide information... And that's what you guys [Syft] are doing too." It’s just the way in which this service is delivered that is changing.

According to Greig's predictions, here are 6 ways in which the accounting landscape will change in the next 5 to 10 years.

In the time of the metaverse, artificial intelligence (AI), and cloud accounting solutions, it will no longer be enough to have traditional accounting skills. Knowing how to use the latest technology – or even build your own platforms – will be a key part of accounting in the future.

"I don't expect you're going to be an effective accountant in the future without having some degree of programming skills." - Greig Sinclair, Hobbs Sinclair

It’s no longer the case that accountants will have to immigrate geographically to get jobs based elsewhere, and without that limitation, the world opens up to accountants with previously limited opportunities.

"I've envisaged for a long time that this might become a norm, but the way I saw it playing out was that large countries worldwide, either India or China, would set up what I would call a 'call center-type' - ‘accounting center’ where people would be commissioned to provide accounting work for companies worldwide." - Greig Sinclair, Hobbs Sinclair

Whether the future will revolve around an ‘accounting center’ in this way or whether there will just be a lot more remote work, it’s clear that the time of doing business all in one building and meeting with clients face-to-face is unlikely to dominate the future of the profession.

With the internet, everything is open. You can easily learn about other countries' taxation laws, but the nuances become difficult. One way to stay relevant locally in a newly international market is to ensure you are the best when it comes to local taxation compliance.

"In our practice, we are moving more towards taxation services. Even though you can pick up tax policies of a foreign country and apply them accordingly, there are many nuances in terms of tax compliance that support a decision to have a local [in your own country] practitioner on your team." - Greig Sinclair, Hobbs Sinclair

In Greig’s view, “the closer you can record the transaction to where it actually physically happens, the better the outcome”. When you have centralized administration functions, something may well get lost between the transaction taking place and being recorded. But when you put technology at the place where the transaction happens, you get a much more accurate record and one which is more likely to capture the most relevant information.

"With the development of these types of tools and applications, technology is providing a means of getting more accurate information earlier and without errors and that makes your decision making so much more effective.” - Greig Sinclair, Hobbs Sinclair

Thanks to the latest developments in technology, you can overcome the old conundrum of time vs. accuracy, meaning that leveraging data to make better business decisions will become far easier to do.

Greig anticipates that the cost of preparing information will become much lower thanks to the increased use of bots and other AI in detecting and processing standard transactions.

Business owners used to follow a cost-benefit analysis when it came to accounting, i.e. "What's the cost of preparing all this timeous and accurate information vs. what's the benefit that we get?" But now, the cost of accounting services will drop along with the easier access to information.

Just because the cost of traditional accounting services may drop doesn’t mean that accountants won’t have a place any more. Greig stresses that “there is still complexity in the accounting world”. All that’s changed is that “a lot of important reports will happen automatically”. Consequently, the focus of accountants will change.

It’s no longer about recording information, as this can be done electronically; it’s about translating that information into actionable insights.

“There's going to be a large amount of information generated and available. Where the skills are going to be required is in sorting, interpreting and deciphering excessive amounts of data and information and using these tools to make astute business decisions." - Greig Sinclair, Hobbs Sinclair

What accountants do today and what they'll do in 5 to 10 years' time is going to be very different, but what will remain the same is the dedication to timeous and accurate information and using that information to help clients make better financial decisions.

"We can use [trends in technology] to our advantage to produce faster, more accurate, and much more valuable information. The skill of the accountant isn't necessarily in preparing information; it's to interpret it and help management make good decisions. We're going to be challenged to change our mindset to be more proactive and forward thinking. And we've got tools to help." - Greig Sinclair, Hobbs Sinclair

Greig believes that the future of accounting is one in which a vast scope of information becomes available and will need to be sifted through to provide valuable insights to clients all around the world.

According to Forbes and the World Economic Forum, AI will replace approximately 85 million jobs in the US alone by 2025. But it’s not all bad news. Experts predict that there will be 95 million job openings because of AI, and that we will likely strike a 50/50 balance between humans and machines in the workforce. It’s just that jobs - such as accounting and financial jobs - will look markedly different.

The future of accounting is primed for the adoption of ever more sophisticated technology and accountants, in turn, should brush up on their technological and communication skills so they can continue to offer the best possible service to their clients.

Greig completed his tertiary education at UNISA with a B.Compt Honors and Postgraduate Diploma in Auditing. He also completed his articles at Betty and Dickson (now RSM Betty and Dickson). Apart from many years of public practice, Greig has also served as CFO for a number of prominent private companies. He became a partner at Hobbs Sinclair in 2006, specializing in corporate structure, tax compliance, audit, financial and management accounting, tax and financial strategy.

Greig is a member of the South African Institute of Chartered Accountants (SAICA), registered member Independent Regulatory Board for Auditors (IRBA), and registered Tax Practitioner with SARS.

In his spare time, he enjoys golfing, coaching junior soccer and spending time with his wife and two sons.

Secret skill: Musician and vocalist

This part three of the Syft series of the future of accounting. Read other articles in this series here:

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