The image of an accountant hunched over a desk, meticulously crunching numbers, is quickly becoming a thing of the past. The accounting profession is undergoing a significant transformation, with a clear shift from transactional tasks to strategic advisory. This evolution is driven by two key factors: technology and the growing complexity of the business landscape.
In fact, 62% of respondents from Sage’s Practice of Now report concur that the current accountancy training program will not suffice to effectively manage a profitable practice by 2030 [1].
Why Number Crunching Won’t Suffice
Automation and AI are rapidly taking over the repetitive, data-entry aspects of accounting. The software can now streamline bookkeeping, generate reports, and even handle basic tax calculations. While accuracy remains crucial, the ability to simply process numbers is becoming less valuable.
The Rise of the ‘Trusted Advisor’ Accountant
The future of accounting lies in providing insights and financial advisory. Businesses are increasingly seeking advisors who can interpret the vast amount of financial data at their disposal. Statista reports that the global Financial Advisory market is projected to grow by 5.35% annually from 2024 to 2028, reaching a market volume of $155.30 trillion by 2028 [2]. This is where the real whitespace of growth lies for future accountants.
Accountants who can translate numbers into actionable business advice will be highly sought after. This new breed of accountant will be a trusted partner, collaborating with clients on critical areas beyond traditional accounting. They’ll be involved in discussions about marketing strategies, cost management initiatives, and even business expansion plans.
5 Key Avenues for Channeling Future Accountant Skills
With the context set around how the accounting industry is evolving and why it’s incumbent upon future accountants to adapt with these changes, let us now explore how this change can be accommodated. To remain relevant and add value, accountants must broaden their skill sets and embrace new roles. This opens doors for accountants to showcase their expertise in new areas.
Let’s explore 5 key avenues where future-focused accountants can channel their skills and become indispensable assets to businesses.
Business Growth
Future accountants will be at the forefront of driving business growth. A survey by the Institute of Management Accountants found that companies leveraging financial analysis saw a 15% increase in revenue growth [1].
By leveraging advanced financial data analytics, they will identify emerging trends and pinpoint opportunities for expansion. Their insights will enable businesses to make informed decisions about investments, pricing strategies, and market entry. With their financial expertise, accountants will guide companies in optimizing revenue streams and managing costs more effectively, ultimately fueling sustained growth and competitive advantage.
Action Point – Use advanced financial data analytics to identify growth opportunities, such as new markets or product lines. Regularly analyze trends and customer data to guide decisions on investments and pricing strategies.
Work closely with management to develop strategies that maximize revenue while minimizing costs. Provide financial insights on streamlining operations, improving profitability, and making smart investments for long-term growth.
Risk Management
In the future, accountants will play a pivotal role in safeguarding businesses through advanced risk management strategies. This is indicated by the Association of Certified Fraud Examiners (ACFE) report which reveals that businesses lose 5% of their revenue to fraud annually, making risk management a crucial area for accountants to address [2]. By equipping themselves with risk management skills, accountants can help convert a challenge into an opportunity.
They will utilize sophisticated tools to identify and assess financial risks, such as cash flow issues, credit risks, and market volatility. By developing comprehensive risk mitigation strategies, accountants will ensure financial stability and resilience. Their work in enhancing compliance and strengthening internal controls will protect businesses from fraud and regulatory penalties, fostering a secure and trustworthy environment.
Action Points – Use advanced tools to identify risks like cash flow issues and market volatility. Create and implement strategies to minimize these risks, ensuring financial stability and protecting the business.
Enhance internal systems and controls to prevent fraud and ensure compliance with regulations. This will help safeguard the business from financial losses and legal penalties.
Did You Know?
Blockchain Adoption: By 2030, blockchain is expected to save the accounting profession up to $150 billion annually in costs related to reconciliation and record-keeping.(source: Deloitte Insights – Blockchain: A game-changer for accounting)
AI Integration: AI can reduce the time spent on repetitive accounting tasks by 50%, allowing accountants to focus on strategic advisory roles. (Source: McKinsey & Company – Artificial Intelligence in Accounting)
Cybersecurity Focus: With increasing cyber threats, 95% of accounting firms now prioritize cybersecurity in their operations. ( Source: CNBC – Accounting Firms and Cybersecurity )
Sustainability Reporting: 88% of companies worldwide are expected to incorporate sustainability metrics into their annual reports by 2025. (Source: Global Reporting Initiative – Sustainability Reporting )
Remote Work: Remote accounting jobs have increased by 30% since 2020, allowing firms to access a global talent pool. (Souce: FlexJobs – Remote Accounting Jobs )
Strategic Planning
Functioning as strategic planners to their clients, future accountants will be indispensable. They will provide precise financial forecasts and comprehensive budgets that are crucial for setting realistic business goals. By efficiently allocating resources and closely monitoring performance against plans, accountants will help businesses stay on track and achieve their objectives.
Their ability to interpret financial data and provide actionable insights will be vital in steering strategic decisions, enabling businesses to navigate complex markets and seize growth opportunities.
Action Points – se detailed financial analysis to create precise forecasts and budgets, helping businesses set realistic goals and allocate resources effectively.
Regularly track business performance compared to the set plans and adjust strategies as needed. Use financial insights to guide strategic decisions and identify opportunities for growth.
Digital Marketing
Accountants will become key players in optimizing digital marketing efforts. HubSpot’s State of Marketing Report 2023 reveals that 70% of marketers see the need for financial data integration in digital marketing to measure ROI accurately [3]. This is where accountants of the future will truly make the scene.
They will analyze the financial impact of marketing campaigns and advise on budget allocation to maximize return on investment (ROI). By tracking the performance of various marketing channels, accountants will help businesses fine-tune their digital marketing strategies. Their understanding of customer acquisition costs and lifetime value will lead to more effective marketing spend, driving higher profitability and better-targeted campaigns.
Action Point – Use financial data to assess the effectiveness of marketing campaigns and advise on budget adjustments. Ensure marketing spend is optimized for maximum return on investment (ROI).
Monitor customer acquisition costs and customer lifetime value. Use these insights to help businesses refine their marketing strategies, ensuring more targeted and profitable campaigns.
Click here to read more about digital marketing for accountants.
Operational Efficiency
Improving operational efficiency will be another significant area where future accountants will make a difference. By analyzing cost structures and identifying inefficiencies, they will recommend process improvements and cost-saving measures.
Accountants will collaborate with different departments to streamline operations and boost productivity. They will also implement and monitor key performance indicators (KPIs) to ensure operational goals align with the overall business strategy, leading to enhanced efficiency and effectiveness across the organization.
Action Point – Analyze cost structures and processes to spot inefficiencies. Recommend cost-saving measures and process improvements to boost productivity and streamline operations.
Implement and track key performance indicators (KPIs) to ensure operational activities align with overall business goals, driving better efficiency and effectiveness across departments.
Essential Skills for the Future Accountant
To thrive in this new environment, accountants will need to equip themselves with a new set of skills. Here are some of the most important:
- Data Analytics: The ability to analyze financial data, identify trends, and translate them into clear, actionable insights is paramount.
- Communication: Accountants will need to excel at communicating complex financial information to clients in a clear, concise, and engaging manner.
- Business Acumen: A strong understanding of business operations, marketing principles, and overall industry trends will be crucial for providing well-rounded strategic advice.
- Technology Adoption: Familiarity with accounting software, data visualization tools, and other relevant technologies will be essential for efficiency and staying ahead of the curve.
- Marketing Expertise: Accountants who understand digital marketing can offer a significant strategic advantage to their clients. By analyzing metrics around marketing budgets, PPC spending, and campaign costs, accountants can identify areas for improvement, optimize spending, and maximize returns for each marketing channel.
Future Outlook: Accounting for Trust
The shift from number cruncher to trusted advisor marks a major change in the accounting profession. This change means accountants need to learn new skills and think beyond just financial statements. Imagine a future where accountants lead business innovation, guiding companies through different verticals. Their role will go beyond managing finances to shaping business success.
As financial and strategic management merge, accountants have a unique opportunity to redefine their profession. They can become key figures in driving business growth and success. For accountants who embrace this transformation, the future is bright. The demand for skilled business advisors with strong accounting backgrounds is only expected to grow. By developing the necessary skillset and adapting to the changing landscape, accountants can become invaluable partners to their clients, playing a key role in driving business growth and success.
Action Point – Develop new skills in areas like business strategy, data analytics, and industry-specific trends. This will enable you to offer insights that drive innovation and growth across different sectors.
Embrace a more strategic role by providing advice on long-term business planning, market opportunities, and investments. This will help you become an indispensable partner in shaping overall business success.
Reviewed by:
Arun Mehra
Samera CEO
Arun, CEO of Samera, is an experienced accountant and dental practice owner. He specialises in accountancy, financial directorship, squat practices and practice management.
Bibliography
- https://www.sage.com/en-gb/blog/practice-of-now/
- https://www.statista.com/outlook/fmo/wealth-management/financial-advisory/worldwide
- https://www.djfm-journal.com/download/the-impact-of-management-accounting-and-how-it-can-be-implemented-into-the-organizational-culture.pdf
- https://www.acfe.com/-/media/files/acfe/pdfs/rttn/2022/2022-report-to-the-nations.pdf
- https://futureofmarketinginstitute.com/hubspot-the-state-of-marketing-report-2023/
