Did you know that accounting is one of the oldest professions in the world, dating back to ancient times when people used clay tablets to record transactions? Today, accounting is still one of the most popular and respected careers in the world, with over 1.8 million accountants employed in the US alone.
Are you interested in pursuing a career in accounting (possibly in the United States)? If so, you might be wondering how the rise of artificial intelligence (AI) will affect your future prospects. AI is a technology that can perform tasks that normally require human intelligence, such as learning, reasoning, and decision-making. AI is already being used or developed in various industries and sectors, including accounting. But what does this mean for accounting jobs? Will they become obsolete or more valuable? How can you prepare for the changing landscape of accounting in the age of AI?
In this post, we will explore the current and future demand for accounting jobs, and whether they can be replaced by AI. We will also provide some tips and advice on how to prepare for the future of accounting in the age of AI.
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The Current Demand for Accounting Jobs
According to the U.S. Bureau of Labor Statistics (BLS), there were about 1.4 million accountants and auditors employed in 2020. The median annual wage for these occupations was $73,560, which was higher than the median annual wage for all occupations ($41,950). The BLS projected that the employment of accountants and auditors would grow by 4% from 2020 to 2030, which was about as fast as the average for all occupations.
Are Accounting Jobs in Demand?
The demand for accounting jobs is influenced by several factors, such as:
- The complexity and diversity of accounting tasks. Accounting involves a wide range of tasks, such as preparing and examining financial records, ensuring compliance with laws and regulations, analyzing financial data, providing advice to clients or management, and auditing financial statements. These tasks require specialized knowledge, skills, and judgment that are not easily replicated by machines.
- The regulatory and ethical standards. Accounting is subject to strict standards of accuracy, integrity, and professionalism. Accountants and auditors must follow the Generally Accepted Accounting Principles (GAAP), the International Financial Reporting Standards (IFRS), the Sarbanes-Oxley Act (SOX), and other rules and regulations that govern their work. They must also adhere to ethical codes of conduct that ensure their independence, objectivity, and competence. These standards create a high demand for qualified and trustworthy accountants and auditors who can ensure compliance and quality.
- The need for human judgment and communication skills. Accounting is not just about numbers and calculations. It also involves interpreting, explaining, and communicating financial information to various stakeholders, such as clients, managers, investors, regulators, or the public. Accountants and auditors must be able to understand the context, purpose, and implications of their work, and communicate them effectively in oral or written forms. They must also be able to interact with people from different backgrounds, cultures, and perspectives, and build rapport and trust with them.
Accountants and auditors face some challenges and opportunities in the current environment, such as:
The increasing competition.
Accounting is a competitive field that requires constant learning and updating of skills and knowledge. Accountants and auditors must keep up with the changes in accounting standards, laws, regulations, technologies, markets, and industries that affect their work. They must also differentiate themselves from other professionals by demonstrating their value-added services, expertise, experience, or credentials.
The globalization.
Accounting is becoming more globalized as businesses operate across borders and markets. Accountants and auditors must be able to work with international clients or colleagues, understand different accounting systems or cultures, and comply with different rules or regulations. They must also be able to adapt to different time zones, languages, or communication styles.
The digital transformation of businesses.
Accounting is being transformed by the adoption of digital technologies that enable faster, cheaper, easier, and more accurate processing of financial data. These technologies include cloud computing, big data analytics, blockchain, artificial intelligence (AI), machine learning (ML), robotic process automation (RPA), internet of things (IoT), etc. These technologies create new opportunities for accountants and auditors to improve their efficiency, quality, insights, and value proposition.
The Impact of AI on Accounting Jobs
AI is a technology that can perform tasks that normally require human intelligence, such as learning, reasoning, and decision-making. AI is already being used or developed in accounting, such as for automating repetitive and routine tasks, enhancing accuracy and efficiency, providing insights and recommendations, and detecting fraud and errors.
Some examples and evidence of how AI is already being used or developed in accounting are:
- Automating data entry and reconciliation. AI can use optical character recognition (OCR) or natural language processing (NLP) to extract and validate data from invoices, receipts, bank statements, or other documents, and enter them into accounting software or systems. AI can also use machine learning (ML) or rules-based algorithms to match and reconcile transactions or accounts and flag any discrepancies or anomalies. For example, Receipt Bank is a cloud-based service that uses AI to automate data entry and reconciliation for small businesses and accountants.
- Enhancing accuracy and efficiency. AI can use ML or deep learning (DL) to learn from historical data and patterns and apply them to new data or situations. AI can also use NLP or natural language generation (NLG) to understand and produce natural language texts or reports. AI can help accountants and auditors to improve their accuracy and efficiency by reducing human errors, saving time, and increasing productivity. For example, MindBridge Ai Auditor is a cloud-based platform that uses AI to analyze financial data, identify risks, and generate audit reports.
- Providing insights and recommendations. AI can use ML or data mining to analyze large and complex data sets and discover patterns, trends, or anomalies that are not easily visible or understandable by humans. AI can also use NLP or NLG to generate natural language summaries, explanations, or suggestions based on data analysis. AI can help accountants and auditors to provide insights and recommendations to their clients or management, and add value to their services. For example, KPMG Clara is a cloud-based platform that uses AI to provide audit insights, recommendations, and reports to auditors and clients.
- Detecting fraud and errors. AI can use ML or anomaly detection to identify unusual or suspicious transactions, activities, or behaviors that may indicate fraud, error, or misconduct. AI can also use NLP or sentiment analysis to detect emotions, attitudes, or opinions that may reveal fraud, error, or misconduct. AI can help accountants and auditors to detect fraud and errors in financial data, and prevent or mitigate losses, risks, or damages. For example, EY Helix is a cloud-based platform that uses AI to detect fraud and errors in financial statements, and alert auditors and clients.
AI has both benefits and drawbacks for accounting, such as:
- Benefits:
- Improving productivity and quality. AI can help accountants and auditors to perform their tasks faster, cheaper, easier, and more accurately, by automating or augmenting their work processes, reducing human errors, saving time and costs, and increasing output and quality.
- Reducing costs and risks. AI can help accountants and auditors to reduce their operational costs and risks, by optimizing their resource allocation, enhancing their compliance and security, minimizing their liabilities and exposures, and protecting their reputation and credibility.
- Creating new opportunities and roles. AI can help accountants and auditors to create new opportunities and roles for themselves, by expanding their service offerings, diversifying their client base, developing new skills and competencies, and creating new value propositions and competitive advantages.
- Drawbacks:
- Posing ethical and social issues. AI can pose ethical and social issues for accountants and auditors, such as privacy, confidentiality, transparency, accountability, bias, discrimination, manipulation, or deception. Accountants and auditors must ensure that they use AI in a responsible and ethical manner, that respects the rights and interests of their clients, stakeholders, and society at large.
- Requiring new skills and competencies. AI can require new skills and competencies for accountants and auditors, such as technical, analytical, digital, or data literacy skills, that enable them to understand, use, or oversee AI systems or tools. Accountants and auditors must also update their existing skills and knowledge to keep up with the changes in accounting standards, laws, regulations, technologies, markets, or industries that are influenced by AI.
- Threatening existing jobs and functions. AI can threaten existing jobs and functions for accountants and auditors, by replacing or displacing them with machines or algorithms that can perform their tasks better or cheaper. Accountants and auditors must adapt to the changing nature and scope of accounting work in the age of AI, and focus on the tasks that require human intelligence, judgment, or creativity.
The Future Outlook for Accounting Jobs
According to a report by PwC, AI could potentially automate up to 46% of accounting tasks by 2030. However, this does not mean that accounting jobs will disappear. Rather, it means that accounting jobs will change. AI will transform the nature and scope of accounting work in the future, by creating new demands and expectations from clients and stakeholders, requiring new models and standards of accounting practice.
Some of the predictions and scenarios for how AI will shape the future of accounting are:
Transforming the nature of accounting work.
AI will transform the nature of accounting work from being transactional or compliance-oriented to being advisory or strategic-oriented. Accountants and auditors will spend less time on data entry or reconciliation tasks that can be automated by AI systems or tools. Instead, they will spend more time on providing insights or recommendations that can add value to their clients or management. They will also play a more proactive role in shaping business decisions or strategies based on financial data analysis.
Transforming the scope of accounting work.
AI will transform the scope of accounting work from being narrow or specialized to being broad or interdisciplinary. Accountants and auditors will need to expand their knowledge base beyond accounting principles or rules to include other domains or disciplines that are relevant to their work context or industry. They will also need to collaborate with other professionals from different fields or functions that are involved in or affected by financial data or processes, such as IT, marketing, operations, or legal.
Transforming the models and standards of accounting practice.
AI will transform the models and standards of accounting practice from static or rigid to being dynamic or flexible. Accountants and auditors will need to adapt to the changes in accounting standards, laws, regulations, technologies, markets, or industries that are driven by AI. They will also need to develop new frameworks or methodologies that can accommodate the complexity and uncertainty of financial data or situations that are generated or influenced by AI.
The skills and qualities that accountants will need to succeed in the future are:
| Critical thinking | Accountants will need to have the ability to analyze, evaluate, and synthesize information from various sources and perspectives, and apply logic, reasoning, and evidence to solve problems or make decisions. |
| Creativity | Accountants will need to have the ability to generate, develop, and implement new ideas, solutions, or approaches that are original, novel, or innovative. |
| Problem-solving | Accountants will need to have the ability to identify, define, and resolve issues or challenges that arise in their work context or environment. |
| Communication | Accountants will need to have the ability to express, exchange, or convey information effectively in oral or written forms, using appropriate language, tone, style, or format. |
| Collaboration | Accountants will need to have the ability to work with others from different backgrounds, cultures, or perspectives, and achieve common goals or outcomes. |
| Emotional intelligence | Accountants will need to have the ability to recognize, understand, and manage their own emotions and those of others, and use them appropriately in their work interactions or relationships. |
| Adaptability | Accountants will need to have the ability to adjust to changing situations or demands in their work context or environment. |
| Lifelong learning | Accountants will need to have the ability to acquire new skills or knowledge continuously throughout their careers. |
Some of the tips and advice on how to prepare for the future of accounting in the age of AI are:
Keep up with the latest trends and developments in AI and accounting.
Accountants should stay informed and updated on the latest trends and developments in AI and accounting that affect their work context or industry.
They should read relevant news articles, blogs, journals, reports, books, podcasts, webinars, etc., that provide insights or information on AI and accounting.
They should also attend relevant events, conferences, workshops, seminars, courses, etc., that provide opportunities for learning or networking on AI and accounting.
Leverage AI tools and platforms to enhance your work performance.
Accountants should leverage AI tools and platforms that can enhance their work performance by automating or augmenting their work processes.
They should explore and experiment with different AI tools and platforms that are available or suitable for their work context or industry. They should also evaluate and monitor the performance and impact of AI tools and platforms on their work quality and efficiency.
Acquire new skills and knowledge through training programs.
Accountants should acquire new skills and knowledge that are relevant or required for their work context or industry in the age of AI. They should enroll in education and training programs that can provide them with technical, analytical, digital, or data literacy skills, or other skills or knowledge that are related to AI or accounting.
They should also seek feedback or guidance from mentors, coaches, or peers on how to improve or update their skills or knowledge.
Network and collaborate with other professionals in the field.
Accountants should network and collaborate with other professionals in the field of AI or accounting, such as researchers, developers, practitioners, educators, or regulators. They should join or participate in online or offline communities, forums, groups, or associations that are focused on AI or accounting.
They should also share or exchange their ideas, experiences, or insights with other professionals in the field, and learn from them.
Embrace change and innovation with an open mind.
Accountants should embrace change and innovation with an open mind, and be willing to adapt to new situations or demands in their work context or industry. They should also be curious and creative, and seek new opportunities or challenges that can help them grow or advance their career.
Conclusion
AI is a technology that can perform tasks that normally require human intelligence, such as learning, reasoning, and decision-making. AI is already being used or developed in accounting, such as for automating repetitive and routine tasks, enhancing accuracy and efficiency, providing insights and recommendations, and detecting fraud and errors.
AI has both benefits and drawbacks for accounting, such as how it can improve productivity and quality, reduce costs and risks, and create new opportunities and roles, but also pose ethical and social issues, require new skills and competencies
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