The biggest issues accountants face will range individually of course, but much of it will involve technology. Follow along for 5 of the biggest issues in the accounting profession, as well as some insights on how you and your accounting department can best overcome these challenges.
1. Lack Of IT Literacy in the Accounting Field
If you’ve been following accounting current events, the role of an accountant has steadily grown more technical. So much so that failure to adapt to cloud technology could pose a serious threat to an accountant’s job security. Now more than ever, cloud-based accounting systems are being used both in the office and remotely. Finances are going fully digital. One of the biggest challenges accountants face is being able to use cloud accounting software and operate efficiently in a cloud environment. The importance of storing and analyzing financial data from multiple business applications is also playing an increased role. Defining which business tools need to communicate to the accounting solution and what data needs to be monitored is critical for a complete financial picture of the business.
2. Accounting Automation
Related to technology, automation is going to be a challenge for accountants, but not in a way that will eliminate their profession. Automation and even AI will not replace but actually enhance the accountant’s role if they can successfully deploy and use these tools. One of the big challenges for financial experts is being able to harness more automated functions to enhance the value of accounting processes.
3. The Accounting Profession Has New Skill Requirements
In addition to new technology requirements and pure accounting knowledge, accountants are facing a much more interconnected world. This means wearing multiple hats to understand how the financial picture is drawn. Specifically, this means becoming more adept at understanding business requirements, processes, and even customer behavior. Today the accountant is less about bookkeeping and more about data analytics.
In an uncertain economy, businesses need accurate, informed financial insight to save money and make the best decisions possible. Financial forecasting, financial analysis, and cash flow projection proficiency are critical skills to have now. The more proficient accountants are in these skills, the more valuable they become. Additionally, being able to create dynamic financial and business reports that answer exactly what the company needs to achieve key objectives are important.
4. Tax Laws are Ever Changing
A constant challenge for accountants is keeping up with tax regulations. All levels of accountants and CPAs should be mindful of changes and be able to use accounting technology and tax management systems to handle taxes online. With tax accounting software, the software is built to be compliant, meaning you won’t need to spend time considering government regulations. You’ll also save time on calculating sales tax, as it is automatically as transactions are completed.
5. Keeping Financial Data Secure
Internal and external accounting system threats like ransomware attacks are very prominent and will only pose a more serious threat in the future. Significant hacking and fraud incidents have been steadily increasing, with spikes since the workforce went remote during the COVID-19 lockdowns. For accountants, the challenge is implementing processes and tools to protect data. Remember, accounting errors and data theft have caused many businesses to actually fail. However, while these digital challenges remain, the advantage for accountants is in knowing the features and internal controls needed to protect financial data.
Whether you’re an individual accountant or an accounting firm, to help alleviate these issues and challenges, utilizing the right accounting software for your client’s accounting processes is key.