The future of Accounting

What is accounting? Will it have a future? Do people see it as a possible future work field? Is it an interesting working area? for people?  These are the questions, I am going to discuss and write about. I wanted to write about this, because it is important to me and I see it also as a current issue. I see it as a current issue, because everything is changing now and certain professions are known to disappear in the future. The following will be written based on my opinion and based on found reliable articles and writings.

Why-Your-Business-Needs-an-Accountant

Accounting is at its simplest something, which tells how the company is doing financially. The key definition thought is that “Accounting is the process of identifying, measuring, recording and communicating economic transactions.” (Collins & Hussey 2007, 5) Accounting is in its broadest form a service, if you might say, which provides to those who are in the need of financial information about the business.

Before I start talking about the future of accounting, I would like to point out a little bit about its roots. Accounting has been existing for a very long time, thought as a different form but still with the same idea. The skill of accounting is based to the Middle Ages, and it was born in 1100´s upswing. Accounting has gone through a rough journey till this day, because of the globalization, automation and due to all transiting to online. Thought Accounting is still standing here, and it is standing with very strong and sure legs. That is why I have a clue that it is not going anywhere and that is has a secured place in the future. Next I will point out why I think like that.

When doing some research about the future of accounting, I came across a writing about 12 possible prediction of the future of accounting. The writing was written by Rob Nixon, CEO & Founder of Proactive Accountants Network. Nixon wrote with a perspective of the accounting firms in the future. Nixon´s predictions are based on his working experience with different accounting firms in the last 19 years. I am going to point out a few of Nixon´s future predictions. Fifth prediction is that the next partners will want faster results and they will be less patient. I see this very possible, because it is already happening due to the all the time faster progressing world. “Prediction 8, Clients will demand additional service.” (Nixon, 4) This one is also a good point, because clients are getting smarter and they do know what they want. That is why accounting companies need to give more additional services.

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There is everywhere talking about how different professions are dying or changing. On the other hand new ones are being made. This next sentence points it well. I t is a quote from an article, The future of the Accounting and Legal Professions in China, by China Briefing.  “The Intuit reports states that in the future many accountants will find themselves in new roles, providing consulting (or similar) services rather than the traditional preparation of tax and financial statements.” (China Briefing) This kind of change is not just happening for accountants, it is happening for many different professions. I think that in the future accountants need to be even more motivated and passionate towards their work.This is important, because the unfocused and unmotivated accountants will not survive.

“The future of the accounting profession is undergoing a dramatic shift as current and potential clients expect real-time support; access to their financial information anytime, anywhere; and their accountants provides expert advice in an increasingly complex, global business world.” (Intuit, Future of Accountancy Report) The world is going towards the direction where everything needs to be easily available at anytime, anywhere.

Sources:

Rönkä, Tiina 2008. Tulevaisuuskirjanpito, opinnäytetyö. Satakunnan ammattikorkeakoulu. http://www.theseus.fi/bitstream/handle/10024/1746/Ronka_Tiina.pdf?sequence=1 Luettu 15.3.2014.

Kirjanpito. Kirjanpitoa. http://www.kirjanpitoa.com/kirjanpito Read 15.3.2014

Repetto, Chris 2013.See the Future: Intuit´sR Future of Accountancy Report. Intuit Accountants News Center. https://blog.accountants.intuit.com/intuit-news/see-the-future-intuits-future-of-accountancy-report/ Read 17.3.2014

Nixon, Rob. The Future of the Accounting Profession. Proactive Accountants Network. http://proactiveaccountants.net/images/FutureAccounting.pdf Read 21.3.2014

Collins, Jill & Hussey, Roger 2007. Business Accounting. Palgrave Macmillan, Hampshire and New York.

Atrill, Peter & McLaney, Eddie 2012. Management Accounting for Decision Makers. 7., revised edition. Pearson, Harlow.

-Sevala

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One Response to The future of Accounting

  1. seijamikkonen says:

    Excellent views about the jobs in the future!

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