Redefining the role of accountants in an AI-driven era
Being traditionally seen as the process of recording, summarising, analysing and reporting of financial transactions about individuals, businesses or other organisations, accounting is currently facing a transformative shift as a result of technological advancements, especially in Artificial Intelligence. AI-powered accounting software has taken over many routine tasks performed by accountants. The core accounting tasks like […]
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Being traditionally seen as the process of recording, summarising, analysing and reporting of financial transactions about individuals, businesses or other organisations, accounting is currently facing a transformative shift as a result of technological advancements, especially in Artificial Intelligence. AI-powered accounting software has taken over many routine tasks performed by accountants. The core accounting tasks like categorisation, data entry and reconciliation are now automated in AI. With a degree of accuracy, these tools can easily deliver real-time financial statements, along with modern finance metrics. Thus, the shift creates the fear of job displacement and professional irrelevance among accounting students and accountants.
This calls for accountants to adapt to these changes and avoid being irrelevant in the job market. A study published by Forbes supports these concerns, noting that among the factors that made over 300,000 US accountants and auditors leave their jobs between 2019-2021, there is a fear of being replaced by automation. However, this finding has a contrary narrative. A recent survey conducted by an automation platform called DataSnipper indicates that auditing/accounting job vacancies have risen by 25% in 2024.
This can be attributed to the high demand for accounting personnel, the retirement of those in practice and the role of AI in cutting down auditors’ repetitive work. The survey also indicates that 83% of the auditors in the world tend to stay in companies with AI initiatives. These findings illustrate a key truth. AI has posed both threats and opportunities to accountants and the accounting profession. But the determining factor lies in how accountants respond to them.
Although AI can be used to perform many accounting functions which are carried out by accountants, it can’t replace the human judgment required to weigh up different variables and make an informed decision. This may be the reason that most accountants are not trying to match the realities of the current AI-driven era. But the truth is that, as accountants’ works are becoming lesser because of the emergence of AI, there is a need for accountants professional or conventional to evolve from being mere financial reporters to becoming strategic advisors, leveraging financial data analytics (DA) to interpret data, advise their clients and enhance organizational performance.
Financial data analytics in accounting lies in making critical financial decisions for an organisation. It enables accountants to keep track of the overall organisation’s functions. Accountants with DA knowledge can help organisations to make informed decisions. They can assist organisations in keeping records, budgeting and financial forecasting, as well as setting targets and projections with a high degree of accuracy. An accountant can use DA to guide company-employee relations by establishing key performance indicators to analyse employees’ overall financial impact on the company. Through AI-driven analytic tools like Zoho and Qlik, accountants can simplify complex financial circumstances into useful information.
Furthermore, in tax consultancy and advisory services, accountants can use financial data analytics to guide clients in tax planning and compliance. They can also liaise with revenue agencies for efficient revenue collection. Data analytics tools can be harnessed by accountants depending on the nature and the circumstances of the clients. Accountants who transition from ordinary financial data processing to advanced financial data interpretation tend to have more relevance in the accounting profession.
Adopting data analytics not only helps accountants to stay relevant in a competitive labour market but also helps them to improve their professionalism and expertise.
Nowadays, the accounting profession is no longer limited to classification, summarisation and reporting. It requires accurate data analysis and informed decisions. AI is an opportunity for an accountant, not a threat.
Accountants shouldn’t resist this development but rather adopt it, harness it and grow. This is the only way to redefine their relevance in an AI-driven era.
Sunusi Abubakar Birnin Kudu wrote from Arawa B. Akko Local Government, Gombe State