Most accountants still underprepared for tech shift

The latest member survey* from the Institute of Financial Accountants (IFA) has shown that there is still a gap in technology skills to address the digitalisation shift, with many accountants feeling underprepared.

The report features feedback from members on the skills and competencies required by today’s businesses and practices, as well as the key issues and challenges being faced by members. The majority of members surveyed recognised the likely impact of the listed challenges, which also included cyber security issues, legislative changes, automation, net zero, and wider use of offshore accountancy resources.

Biggest challenges faced

Of the challenges, new technology such as AI was cited as the most likely to have the biggest impact on the sector. It will likely be employed to support efficiencies in data processing, analysis, and communication.

Whilst 15.4% of members surveyed felt they were fully prepared to face the challenges ahead, 73% indicated that they only felt somewhat prepared, while 11.6% felt not at all prepared.

Members were also asked to list the top areas where additional support would help address the challenges they face and undertake their job more effectively. The top two were emerging technologies and automation for 56.5% of IFA members, showing their willingness to stay up to date with trends.

The findings highlight, the critical need to address upskilling and increased knowledge in technology, and that failure to do so is the biggest risk for the sector. However, it also emphasises how adaptability, continuous learning, and strategic thinking are key in an ever-changing accounting industry. and present a golden opportunity for professional accounting membership bodies to provide support to help their members navigate the challenges they are likely to face.

How firms can embrace AI learning

One way to assist accountancy teams in adjusting to new challenges is by combining specific training with targeted recruitment efforts. It is essential to provide targeted training programmes to upskill current employees. These programmes need to cover not just technical skills, but also how to effectively use them in an accounting context. Bringing in new hires with these specialised skills can also bring invaluable expertise to teams right away.

Tech companies and academic institutions joining forces would be hugely beneficial in providing real-world insights and state-of-the-art knowledge as an alternative strategy. However, at the end of the day, it is vital to foster ongoing learning and innovation. This promotes continuous skill enhancement and keeps accounting professionals competitive in a fast-changing tech environment.

Firms are being urged to pinpoint any skills gaps by comparing current abilities to AI requirements, and once these gaps are recognised, they can be addressed through a mix of internal and external training.

Those that don’t step up to the challenge, might see a decline in how efficient and competitive they are. Accounting teams that don’t seize the chances to automate, improve accuracy, and analyse data insightfully may find it tough to keep up with their counterparts. To stay ahead, business leaders need to keep embracing the technologies at hand. By doing so, they can save time on manual tasks, minimise errors in financial data, and gain visibility that will enable them to make quicker, wiser, and better-informed decisions.

Benefits and challenges

AI offers many advantages, such as improved audit capabilities, the capacity to analyse large amounts of financial data quickly, increased accuracy and compliance, and enhanced forecasting abilities.

Of course, there are still obstacles to fully embracing AI technology. One major challenge often cited is teaching AI models to analyse intricate financial information correctly. Building trust in AI results and establishing strong governance to prevent any misuse of AI have also been highlighted as important issues.

Against today’s ever-evolving business landscape, companies that have proficient teams will stand out from the competition. By mastering new technologies such as data analytics and AI modelling, these teams can uncover valuable insights that benefit all aspects of a business. This proactive approach allows them to capitalise on opportunities and mitigate any potential challenges.

Upskilling = growth opportunity

These latest findings underline just how crucial it is to firms to invest in upskilling employees to ensure their operations remain efficient and their organisation stays resilient in the future. Yet upskilling staff also means there is potentially a much bigger prize on the table.

The accounting sector is seeing a substantial increase in growth. This rise is being fuelled by various factors such as the increasing intricacy of financial regulations, the call for enhanced transparency in financial reporting, and the expanding economy that requires more from accountants. Moreover, the emergence of new technologies such as AI, cloud computing, and automation is not just improving the effectiveness of accounting services but also creating new opportunities for advisory and analytical services. As a result, there is a greater need for proficient accountants and finance experts who can adapt to these developments, pointing towards a promising future for the industry.

*Source: IPA Group Membership Survey 2024, April/May 2024.