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Accounting 2.0? Yes, please!

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Progressive computerization of accounting is not able to change three phenomena: the beauty of the accounting profession, the importance of a personal signature under a document, and the need for a human perspective on data, from which only a person is able to deduce potential business opportunities and threats.

Robotisation and automation, artificial intelligence, big data, crypto-currencies, blockchain, behavioural accounting – these, increasingly often, are concepts related to the reality of accountants, and not the subject of scientific research or futurist dilemmas. These phenomena are permanently changing the reality of work of accounting departments all over the world, both in-house teams of individual companies and companies providing financial and accounting services. Behind these changes are the global trends of the digital transition we are witnessing. The effect of progressive computerisation of social and economic life is, among other things, legislative changes that are trying to keep up with reality (a clear manifestation of which is the recently growing production of legal acts of the highest rank, as shown by our “Legal Barometer” at Grant Thornton). We all feel the changes, for example in the form of solutions such as e-returns or – in other sectors – e-prescriptions. The fact that more and more activities take place automatically or remotely is not changing the fact that we still need a human being in all of this.

THE PROFESSION OF AN ACCOUNTANT? EXCITING AND ONLY FOR THE BEST!

What I find most exciting about accounting right now is its interdisciplinarity and dynamics. So different from the stereotypical perception of the accounting profession. In order to perform their tasks well, an accountant must know not only about finance, but also know how to interpret economic
phenomena, individual documents and data accurately, and then draw conclusions, create visions and see the consequences. No machine can do that. Here you need both experience and a kind of intuition, apart from thorough knowledge of course. In the background, it turns out that knowledge in the area of computer science, data analysis and presentation also becomes critical.

The work of Accountant 2.0 is not a profession for everyone – only for outstanding individuals. It requires constant development and broadening of knowledge in various fields, together with the constantly changing legal and economic environment. It requires resistance to stress and assertiveness to resist various pressures. Finally, it requires knowledge of modern technologies and work tools. But that is not all. Soft skills are also needed to communicate effectively with internal and external clients. This really is work for the best only. And it is well rewarded! So far away from being a bookkeeper, but getting closer and closer to establishing fundamental support for management boards and owners of companies, often operating on global markets. Advanced technology cannot take jobs away from accountants. Naturally, more and more standard and simple operations can be automated, turned into algorithms. Certainly, over time, as artificial intelligence develops, automation will continue. However, it is still a human being who has to design these systems, regularly update their settings, check the requirements and control their correct operation. And it is a human being who must ultimately make decisions and take responsibility for them by signing documents with their own signature.

OUTSOURCING OF ACCOUNTING ENSURES PEACE OF MIND FOR BUSINESS

Accounting 2.0 is a team sport. For obvious reasons, you can’t do everything in accounting alone. That is why you need tools to support your work, but above all – a team. A team of experts who share their experiences and observations. People who, by working for different companies from different sectors of the economy, can offer better solutions than employees of in-house accounting departments.

A comprehensive team of qualified accountants allows to keep the knowledge up to date and follow the changes in the law by participating in trainings and industry events. Finally, what is very important is that a team allows substitution at work, if necessary.

According to the World Bank’s analyses, Polish entrepreneurs need on average 334 hours per year to complete all formalities – the most in Europe. Also for this reason, companies more and more often decide to outsource accounting, taking advantage of the benefits of expert accounting teams 2.0. External accounting services at the highest level provide a sense of security in running a company, often generating savings in time and money. Money is all the more important because investments in IT systems needed for financial and accounting services, their updates and ensuring security of stored and processed data are important cost items.

ACCOUNTANTS IN THE CROSSHAIRS OF CYBERCRIMINALS

A report of one of the organizations dealing with online security from 2017 stated that in the following years a growing number of cyberattacks targeting accountants should be expected, as they have access to finances and key data of companies. The events of recent years, such as an unprecedented cyberattack on one of the Ukrainian companies whose operations were completely paralysed and it took several days to restore the functionality of IT systems, seem to confirm this thesis.

Such specialized service providers as Grant Thornton are much easier to defend, as they systematically invest in IT security and development thanks to the specifics and scale of their operations. It is more difficult to do so with small accounting offices, which operate on various financial and accounting systems, often without sophisticated safeguards. However, in both cases the key to ensuring cyber security is the employees themselves. Existing technologies and algorithms of influencing their reactions or behaviours show how much power and resources have to be constantly spent on information campaigns so that the people employed cannot be manipulated. It has been known for a long time now that people are usually the weakest link in the case of cyberattacks.

THE FUTURE OF THE PROFESSION

The implementation of solutions aimed at increasing the pace of information processing is not aimed at reducing employment in the accounting profession. On the contrary, the time and attention freed up for accountants can be directed to advanced tasks, including those requiring the use of emotional intelligence, where machines are currently unable to replace us. This applies not only to interpersonal relations, but also to the construction of visions and strategies for business development, and in practical terms – even the ability to interpret regulations, which are all too often ambiguous or imprecise and sometimes change more often than providers of ready IT solutions are able to react.

It is worth remembering that accounting has a history of over five hundred years, two industrial revolutions and – for the time being – is doing well in the third era, i.e. the era of science and technology. In the case of each of them, there were changes and threats to a number of professions, but the profession of accountant existed, exists and there is no indication that it will cease to exist in the future. Of course, like every other, it changes over time. We – accountants, as representatives of the profession, have to adapt to the changing conditions and requirements, such as computerization, automation or the changing legal environment. In the era of accounting 2.0, it requires from us much more work and expenditure on personal, multi-faceted development, but this is what makes functioning in this profession so exciting! Personally, I await every new day with enthusiasm and curiosity, as it brings both new challenges and causes for satisfaction when it turns out that our response has hit the spot and even surpassed market expectations, while providing security and development for the companies we support.

Author: Edward Nieboj, Managing Partner, Grant Thornton