While the accounting profession has ancient roots, its tools and techniques have always evolved. New technologies are continuing to increase the efficiency, effectiveness, speed and scale of accounting tasks and relationships.

The emergence of capabilities, such as cloud computing and data analytics, enable accountants to do things even quicker, cheaper, better and with less human intervention, helping them to provide a vastly improved service.

But a digitally-based economy presents challenges too. Trends like automation, self-service and information on demand raise real risks of marginalisation and reduced relevance if the profession fails to adapt to the changing environment.

According to Carl Benedikt Frey, co-director of the Oxford Martin Programme on Technology and Employment, Oxford University, 47% of all jobs are vulnerable to automation.

In his webinar, "The future of work and the accounting profession", a keynote session at ICAEW’s 2018 virtual conference on digital disruption, Frey explained that experts often underestimate the scope of automation and its potential impact on a number of jobs and professions, especially if they are information-based.

“When something can be digitised, data can be collected and algorithms can teach themselves new tasks,” he said.

However, Frey went on to argue that there are human skills that will remain difficult to automate, particularly those involving: creativity, social intelligence, perception and manipulation. These human attributes are vital to negotiation and management, for example.

This means that while the basic technical skills of accountancy might become automated, problem-solving and management skills will retain their value, and become a larger part of the professional role.

Managing risks

To maximise the opportunities and manage the risks of a fast-changing business climate, business adviser Bernard Marr argues that accountants must evolve to deliver valuable and relevant tasks, build skills and encourage responsive organisations. 

In his webinar, "Digital transformation: mega trends in the accountancy profession", part of ICAEW’s 2018 virtual conference on digital disruption, Marr stated that AI, blockchain, data analytics and the cloud will change the roles of everyone who works in finance, placing a greater emphasis on analysis and insight.

“AI allows us to better understand our customers," he said. "The more we understand and predict their needs, the better our services will become.”

While innovation will be primarily driven by individual accountants and organisations, the profession also needs to work together to ensure that it is well positioned for the future.