We’ve asked ChatGPT what the future of accounting is and what predictions about the industry it could give us. Of course, AI cannot give us creative mind-blowing answers, but rather formulates based on growing trends and what is being talked about on the internet. This is what makes it interesting, it’s like accessing a summary of what millions of professionals and experts are sharing about the future of the industry, but just in a couple of words.
So let's see what this powerful tool thinks about the future of the accounting industry.
Automation:
That is nothing new, it is rather a deepening of a trend that has been going on for years. If not, accounting was one of the first industries to automate processes and develop all kinds of accounting software to help with repetitive tasks. The need to keep records, bank assets, and pay taxes, has made accounting an advanced industry in this aspect.
Surely the future of accounting will have to do more with incorporating Artificial Intelligence into an already automated process to streamline analysis and decision-making.
Cloud-based accounting:
Although cloud-based is in fact already quite popular in new business, accounting is still a very traditional industry and some firms find resistance to change when it comes to cloud-based information. We can definitely expect growth in this regard for the future of accounting, but we still have a long way to go for 100% cloud-based accounting.
Data analytics:
This is perhaps the most interesting answer. With the automation of repetitive tasks, accounting firms will have to shift their added value to offering what software and AI cannot: data-based strategic and creative thinking, comprehensive financial solutions, and personalized counseling. This is, we think, the real future of accounting.
Cybersecurity:
Isn't that what we all fear? When we talk about resistance to transferring accounting information to the cloud, we mean that companies should not go into this endeavor until they have the necessary assurances. Unfortunately, access to cybersecurity tools is, until today, a challenge for small and medium businesses.
Sustainability reporting:
Sustainability reporting refers to disclosing information about environmental, social, and governance (ESG) performance. This reporting is becoming increasingly important as stakeholders, including investors, customers, and employees, are looking for more transparency and accountability from companies on their ESG performance.
Collaboration and communication:
Oh, the beautiful world of the internet. This in not the future of accounting, this is the present.
We also asked what is holding the accounting industry back
These were the main answers:
- Resistance to change and limited use of technology: clinging to traditional accounting practices and on manual processes.
- Lack of diversity: The accounting industry has traditionally been dominated by white men, which can limit the industry's ability to innovate and address the needs of a more diverse range of clients.
- Regulatory complexity: compliance requirements have become more complex with the growth of online sales, digital payments, and non-physical money. It's hard to keep up.
So, what to expect?
As we said before, these responses about the future of accounting are somewhat expected, but what is interesting is to think that the idea of shifting accounting add-value to a more specialized and strategic support rather than just reporting and tax compliance, is already at the top of trends.
So, it's clear that the accounting industry is on the cusp of major changes. Automation and innovation are transforming the way accountants work and the kind of services they can offer. This means that the future of accounting is looking pretty exciting, with more focus on value-added services and real-time financial information. For those who are willing to adapt and innovate, there are plenty of opportunities ahead.
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Kevin Mitchell, CPA
Senior Manager and CPA with over 20 years of experience in accounting and financial services, specializing in risk management and regulatory compliance. Skilled in managing audits and leading teams to deliver exceptional services. Proud father of two.
