Accounting Profession Adapts to Shortage and Embraces AI: An Exciting Future Ahead
The accounting profession is currently facing challenges, with concerns about a shortage of accountants and the threat of artificial intelligence (AI) advancements. These issues have been circulating for some time now, painting a doomsday scenario for those who have built their firms and careers around the language of business. However, amid this uncertainty, there are exciting opportunities on the horizon.
According to the Association of International Certified Public Accountants (AICPA)’s 2021 Trends Report, there has been a substantial decrease in the number of CPA exam candidates, with a 17% decline between 2019 and 2020. Moreover, the pass rate for the exam has also dropped, indicating a potential decrease in qualified professionals. These figures do not even account for those set to retire soon.
There are several reasons behind this decline. Burnout, repetitive tasks, and low pay are among the top factors causing professionals to reconsider their careers. Accounting often gets a bad reputation, and many have experienced feeling undervalued and underpaid. However, amidst the concerns, it is important to remember that accounting is not only necessary but critical for organizations and the overall economy to function, thrive, and grow.
Recently, The Wall Street Journal highlighted how the shortage of accountants has led to companies without fully staffed accounting departments reporting material weaknesses in their internal controls over financial reporting. Essentially, these companies are unable to vouch for the accuracy of their accounting records. This situation makes them more vulnerable to ongoing financial and operational issues.
Innovative companies across various industries, such as biotherapeutics and aviation, are particularly affected. These pioneering firms need forward-thinking accounting professionals to help them bring their visions to life. Despite the perception that accounting is rooted in the past and involves monotonous work, there is an opportunity to shift this perspective.
Think of accountants as architects rather than archaeologists. While archaeologists focus on uncovering the past, accountants have the potential to become visionary innovators who shape the future. Embracing modern tools and approaches is crucial for operating and partnering with clients in a future-focused manner. Technological advancements have made accounting more efficient and exciting, automating tasks like invoicing, bill paying, and bookkeeping. This automation frees up time for accountants to engage in strategic activities that create a bigger impact, such as financial analysis, forecasting, and long-term planning for clients’ investments.
AI presents a significant opportunity for the accounting profession. Besides saving time, AI can help identify patterns and trends, enabling accountants to provide valuable ideas, advice, and suggestions to clients. Embracing modern approaches, tools, and technology is essential for staying ahead in the field.
The accounting profession faces challenges due to the growing demand for accountants and a shortage of qualified professionals. However, the industry has always adapted and evolved to meet the changing needs of businesses and society. With the combination of new technologies, a different mindset, and the ongoing need for accounting expertise, it is truly an exciting time for those willing to embrace change and continue learning.
In conclusion, despite the challenges, the accounting profession is on the cusp of transformation. By leveraging technology, adopting a forward-thinking mindset, and recognizing the importance of accounting in shaping the future, professionals can turn this shortage into an opportunity for growth. As the demand for accountants continues to rise, embracing change and continually enhancing skills will ensure a prosperous future for the accounting profession.
