In the most recent member survey* from the Institute of Financial Accountants (IFA), it is suggested that there is still a gap in the technological skills needed by accountants to address the digital age. Many accountants are identifying that they feel underprepared for future transitions and are uncertain about future skills needed.
The IFA’s report features responses on the skills and expertise needed by today’s businesses, in addition to the key challenges that members face. Most members surveyed recognise the potential impact of these challenges, which include issues around cyber security, changes to legislation, increased automation, the move to net zero carbon dioxide emissions and the wider use of outsourcing accountancy resources.
What are the largest challenges faced?
One critical issue faced is the rise of Artificial Intelligence, including programs like ChatGPT. This was consistently highlighted as the most probable change to have the greatest effect on the accounting sector due to AI’s ability to help process data efficiently and offer data analysis. However, there is some evidence of a lack of confidence to embrace or manage the changes. While nearly three quarters suggested that they felt are completely or somewhat prepared to face challenges in the future, 12% felt not at all prepared. Artificial Intelligence, and automation and technology were the top two challenges identified for needing upskilling, with 56.5% of members mostly interested in AI and emerging technologies, demonstrating their enthusiasm to stay up to date with changes in technology.
The report’s findings highlight the vital need for the profession to keep up with technological advances and address a pending skills gap. Additionally, the report emphasises the importance of adaptability, continuous learning, and strategic thinking in this dynamic industry.
How can firms use AI to help their employees learn?
A way to help accountancy firms adjust to new challenges is by combining specific training with targeted recruitment efforts to address their skills gaps. It is vital to provide targeted training programmes to develop the skills of employees which cover not just technical skills, but also how to use these skills effectively in an accounting setting. Bringing in new employees with these specialised skills can deliver valuable knowledge to a team straight away and can be passed onto other employees. However, employers should be aware that many of these skills are in short supply and currently attract a salary premium.
Businesses that don’t step up to the challenge may see a decrease in their efficiency and competitiveness. Accounting teams that don’t seize the opportunity to automate, improve their accuracy, and perceptively analyse data may find it difficult to keep up with competitors. To stay ahead, business leaders need to embrace and see the usefulness of modern technologies. In doing so, firms can save time on manual tasks, reduce errors in financial data, and gain visibility that will enable them to have a swifter, and more-informed decision-making processes.
What benefits and challenges are there from using AI?
AI can be highly beneficial to a business due to its quick analysis of large amounts of financial data, improved auditing capabilities, accuracy, compliance, and an increased ability to forecast.
There are, however, still challenges when trying to fully embrace AI. One major obstacle often referenced is teaching AI models to analyse intricate financial information effectively. Trusting AI results and establishing strong legislation to prevent AI being misused have also been highlighted as pressing issues.
In this dynamic business landscape, businesses that have proficient teams will stand out. By acquiring new technologies such as data analytics and AI modelling, these teams can reveal valuable insights that are beneficial to all aspects of a business. This proactive approach allows them to capitalise on opportunities and reduce the chance of potential challenges.
Can upskilling be seen as a growth opportunity?
The latest IFA report stresses the crucial importance of businesses investing in employee skill development to ensure operational efficiency and resilience to future technological changes. Additionally, upskilling staff offers the potential for even greater long-term benefits.
As an industry, the accounting sector is seeing a large increase in growth. This rise is being fuelled by various factors such as the increasing complexity of financial regulations, the need for increased transparency in financial reports, and the growing economy that demands more from accountants. Furthermore, the emergence of new technologies such as AI, cloud computing, and automation is not just improving the effectiveness of accounting services but also creating new opportunities for advisory and analytical services. As a result, there is additional need for skilful accountants who are adaptable ensuring an encouraging future for the industry.
*Source: IPA Group Membership Survey 2024, April/May 2024.
