In this day and age, several human processes are being automated for efficiency and cost savings.
However, one major field which might not be able to be fully automated is accounting and bookkeeping.
Long before accounting software was introduced, professionals were required to input a considerable amount of data and work on these numbers independently.
However, things have changed as accounting software can be integrated with other business software, thus eliminating the need to input this data and compute it manually.
However, all this has led to concerns over the significance of accountants in the entire process. The big question has been whether computers can replace accountants?
Please keep reading as we take a look at this topic in more detail:
The answer to this question is NO! This is because the scope of accounting stretches far beyond just bookkeeping and preparing tax invoices, among others.
To understand this better, it helps to divide accounting into two distinct parts:
• Bookkeeping, which includes things like the verification of invoices and tax return preparation
• Understanding prevalent business accounting concerns and addressing them
There is no doubt that the first aspect of accounting can be computerised. However, the second part requires human judgment.
Accounting is not all about numbers, as all this information has to be used for the good or the business.
Strategic decisions are made based on these numbers, and this is where accountants come into the picture.
It is easy to argue that other business professionals can read these numbers, but they might not have an understanding of what they mean in regards to the bigger picture.
Automation will replace some parts of the accounting process, and this poses a threat to some CPAs.
These professionals are challenged to adapt to the changes and position themselves as futuristic accountants who can still find a role amidst the rapid automation.
A good example is a traditional bookkeeper who was tasked with keying in accounting entries and performing the computations.
At the moment, the job of an accountant who hasn’t made much of effort to expand their skillset is under threat.
This is because modern-day accounting software is able to automate and perform many of the tasks that accountants would normally do.
The focus of accounting is changing drastically, and there is no doubt that traditional services will remain an integral part of what CPAs do.
The considerable advantage of automation is that it will free up the time accountants need to do their job and lets them focus on giving strategic advice to companies.
Real-time accounting will enable businesses to make quick decisions based on prevalent cases and avoid waiting for long periods before making any changes.
This is particularly applicable to small and medium companies that need to operate with some degree of flexibility for them to remain afloat.
Accountants should embrace automation as it will make their job better. Machines are here to help us do tasks better. They are tools and not replacements.
CPAs should start venturing into some of the fields that are slowly creeping into the accounting scope, such as Cloud computing, Cybersecurity, and AI, as they can help them to improve the quality of work they do.
Nothing can replace human intuition, especially that of an accountant who has many years of experience down their sleeves.
An automated machine can only give out what it learns, but an accountant’s view extends to more than what a computer can see.
Accounting is more of an art than a science. While it has both aspects, the art side of it stands out more.
There are infinite ways of reporting and analysing financial data, and accountants can always find new ways of making businesses understand how they are faring.
Machines cannot exhibit the level of creativity that accountants have, and this is one reason why computers may never phase out accountants.
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We will provide you with the security, confidence and individual attention you and your business deserves. We’re experts with numbers, but we’ll never treat you like one!
Please call us today on 02 4987 2294 or contact us through our website.