Automation has introduced important adjustments to the accounting occupation during the last decade. Whereas some instruments have made accountants’ lives simpler, others have chipped away at their roles as startups search to disrupt a legacy business. The tech corporations that developed these instruments have additionally created and perpetuated a false debate about whether or not automation will overtake the business fully and make accountants irrelevant.
It’s time to finish that debate. A valued accountant is a holistic enterprise advisor to shoppers, fixing human issues that expertise merely can not — and can by no means be capable to — clear up by itself.
The query shouldn’t be whether or not automation will take over accounting, however the place its actual worth lies. This expertise has an vital function in upleveling accounting, however there are clear limitations for its use. ScaleFactor presents an instance of those limitations and a cautionary story. The startup promised to switch human accountants with software program and AI, however it was principally smoke and mirrors, with folks doing a lot of the work behind the scenes. The irony was palpable.
No software program stack can match the monetary acumen, vital considering and trusted counsel human advisor presents. That’s notably true right this moment, as valued accountants have grow to be enterprise companions, not simply quantity crunchers. The place software program is restricted to evaluating concrete inputs, accountants additionally leverage their monetary acumen, understanding of shoppers’ enterprise objectives and observations of communication subtleties just like the inflection in a consumer’s voice to make choices. This enables them to function advisors to their shoppers, whether or not by adjusting enterprise fashions in actual time, constructing balanced and inclusive groups, or managing worker wellbeing.
The COVID-19 pandemic has underscored the significance of this advisory function within the face of high-stakes choices. As many companies have navigated altering unemployment legal guidelines, federal help initiatives and income loss over the previous a number of months, accountants have stepped up. The accountants I’ve spoken with emphasize that their shoppers more and more depend on them for way more than “numbers” issues, like payroll. They’re fixing the “folks” issues that may make or break a enterprise and its workers’ livelihoods, like hiring or conducting layoffs within the midst of a disaster. Accountants want expertise to resolve the previous to allow them to deal with the latter.
Empowering and supporting workers will grow to be an more and more vital driver of enterprise success, as research proceed to show. Utilizing software program to automate repetitive processes offers accountants the liberty to deal with advising their shoppers by means of powerful moments by leaning into their most human abilities, like downside fixing and relationship constructing.
Tech-driven instruments and insights can’t replicate these abilities, however they’ll allow them. Because the transformation of industries like well being care and manufacturing have proven, automation is best when used to avoid wasting time, guarantee compliance and enhance accuracy by dealing with routine, tedious, time-intensive duties. By utilizing software program to automate payroll, tax filings and funds, accountants can deal with their shoppers’ higher-level enterprise challenges and alternatives. They’ll additionally extra simply establish tendencies based mostly on current and historic information, then apply these insights to make suggestions knowledgeable by information.
That is tech at its greatest. At its worst, expertise makes accountants’ jobs tougher and might erode their shoppers’ belief. Software program may generate suggestions based mostly on broad generalizations, failing to account for a enterprise’s nuanced state of affairs or financial context. Throughout the pandemic and ensuing recession, we’ve seen that a lot of the information and algorithms feeding into superior enterprise instruments have been constructed for a world that now not exists. They fall wanting serving to companies clear up the complicated, intersectional issues they face in 2020 and past.
Accountants can add super worth on this new world by leaning into their advisory function. A robust accountant is pivotal to sustaining a consumer’s enterprise, which in flip helps workers’ livelihoods and helps financial restoration. It’s good for accountants’ companies, too: it’s estimated that practices offering advisory companies can generate 50 p.c extra in month-to-month consumer income. Expertise has a task to play, however solely as a lift to the advising, problem-solving and enterprise technique accountants already do every day.