This week’s Innovation Report includes the Future of Accounting. If you are connected in any way to the profession, you’ll get some value out of this article.
Accountants have had a long period of time using the basic principles of finance in a steady fashion. Day in and day out, when it comes to auditing, tax reporting or even compliance are massive costs for business globally. Often the big 4 accounting firms rely upon the majority of their revenues from this as well. However, as you’ll discover through this video and the remainder of the article, this source of revenue is at risk.
Future of Accounting: Audit & Assurance
-Year-end audits and assurance will be made obsolete by the introduction of triple-entry accounting through blockchain technology. By introducing triple-entry accounting first, it allows organizations to be on the leading edge and advise clients more.
-Financial accounting advice will shrink with the assistance of Artificial Intelligence (AI) as it’s happening with law firms. By working in partnership with AI, firms can offer a wider range of value-added services to their clients, along with Quantum Computing.
-Opportunities are present for real-time fraud and forensic accounting with AI.
Future of Accounting: Consulting & Deals
-Robo advisors, chatbots and other implementations of AI can help provide a wider range of value-added services to clients of the firm.
-By using Quantum computing and Blockchain technology, the firm can offer to improve the Innovation capabilities of their clients
Future of Accounting: Tax
-If governments adopt blockchain technology for tax, then it eliminates a big portion of revenue source of firms. By preparing for it and transitioning the role more into consulting, it allows for the firm to grow.
Future of Accounting: Internal
- Administrative Support
- By using chatbots and AI for a lot of administrative work, the firm can reduce the workload for the staff and increase efficiency.
- AI assistant for travel (flight and hotel booking)
- Bots for checking vacation days left
- AI for booking and scheduling meetings, boardrooms etc
- Human Resources/Learning and Education
- A lot of tasks can be eliminated or outsourced to a bot
- Bots for checking how many vacation days left for employees
- Bots for ensuring education credits and resources are renewed