Artificial intelligence is creating plenty of debate about the future of the accounting profession.
Will AI replace accountants? Will bookkeeping disappear? Will businesses still need accounting firms if technology can process transactions, reconcile information and generate reports automatically?
These are reasonable questions.
The more interesting question is: if technology can do more of the repetitive work, what should good accountants be spending their time doing instead?
Accounting has always changed with technology
The profession has been adapting to technology for decades.
Manual ledgers gave way to spreadsheets. Desktop accounting software moved into the cloud. Bank feeds reduced data capturing. Optical character recognition started reading invoices. Systems increasingly communicate with one another without people manually moving information between them.
AI is another, potentially much larger, step in that evolution.
It can already assist with tasks such as processing and classifying information, identifying unusual transactions, summarising large volumes of data, preparing first drafts and analysing information far faster than a person could manually.
That will inevitably change how accounting work is performed.
It does not, however, mean that judgement, accountability and professional expertise disappear.
Less processing. More interpretation.
Historically, accounting firms have spent a significant amount of time producing financial information.
Technology increasingly allows us to spend more time understanding it.
That distinction matters.
A set of financial statements may tell a business owner what happened last year. Good management information can help a business owner understand what is happening now. A good accountant should increasingly help explain why it is happening and what the business owner should be thinking about next.
That means the accountant of the future is likely to spend less time manually capturing, processing and moving information around, and more time on:
- reviewing exceptions and unusual transactions
- interpreting financial information
- identifying risks and opportunities
- improving financial controls and processes
- helping clients understand performance
- supporting better business decisions
- applying professional judgement where technology cannot
For business owners, that should ultimately be a positive development.
AI still needs human judgement
AI is powerful, but it is not infallible.
It can misunderstand information, work from incomplete data and produce answers that sound convincing even when they are wrong. Confidentiality, data security and appropriate oversight also become increasingly important as businesses and professional firms adopt these tools.
In accounting, tax and audit, accuracy and accountability matter.
A faster answer is not necessarily a better answer.
Professional judgement therefore becomes more important, not less. Someone still needs to understand the context, challenge the output, assess whether it makes sense and ultimately take responsibility for the work.
Technology can support judgement. It should not replace it.
The opportunity for accounting firms
At AIM, we do not see technology as the end goal.
The objective is not simply to automate more things.
The objective is to use technology to remove unnecessary friction, improve the quality and speed of information and create more capacity for the work that actually requires people.
That includes understanding our clients, asking better questions, exercising judgement and helping business owners make better decisions.
It also means that accounting firms themselves need to evolve.
Clients should increasingly expect modern accounting firms to use technology intelligently, integrate systems effectively and provide information that is more timely and useful.
But they should also expect those firms to retain the professional standards, accountability and human relationships on which trust is built.
A changing profession, not a disappearing one
AI will undoubtedly change accounting.
Some tasks that historically required significant human time will increasingly be automated. New skills will be required. The expectations placed on accountants will rise.
That should not necessarily be viewed as a threat to the profession.
It is also an opportunity to move the accountant further away from being someone who simply processes historical information and closer to being someone who helps clients understand their businesses and make better decisions.
The future of accounting will involve more technology.
But we believe the best outcomes will come from combining that technology with something that remains fundamentally human: judgement, understanding and trust.
Accountants in Motion | In Motion with Purpose
Disclaimer: The information contained in this article is provided for general informational purposes only and does not constitute accounting, tax, audit, legal, financial, or other professional advice. While every effort has been made to ensure the accuracy of the information at the time of publication, laws, regulations, and interpretations may change, and the application of information may vary depending on individual circumstances. Readers should not act upon the information contained in this article without seeking appropriate professional advice specific to their situation. AIM accepts no responsibility for any loss or damage arising from reliance on information contained herein.
