Many finance teams have experienced the ramifications related to the accountant shortage in recent years. Driven by an aging workforce and fewer accounting grads, there are 340,000 fewer accountants today compared to five years ago, according to a Bloomberg analysis of Bureau of Labor Statistics data.
The American Institute of Certified Public Accountants (AICPA) expects the profession’s talent acquisition and retention challenges to continue, prompting a review of industry practices that’s set to be released this summer.
Fortunately, one bright spot may be the rise of technology that can aid accountants in the field by streamlining time-consuming processes and reducing manual efforts. In its survey of more than 700 accountants, Intuit QuickBooks found that 98% of respondents reported using AI to help clients and their businesses in the past 12 months. A recent pulse survey conducted by RGP shows that 43% of financial decision makers polled said their organization is investing more in end-to-end automated accounting processes and AI tools as a result of the ongoing shortage of CPAs.
AI has taken nearly every industry by storm, and finance functions are no exception. Many accounting professionals stand to benefit from the efficiencies brought on by advancements in AI and automation, and these advancements have the potential to have a significant impact on the challenges the profession has faced as well.
AI And Automation Have The Potential To Improve Work Life Balance
Young professionals entering traditional accounting roles have long had to navigate demanding hours driven by manual data entry and analysis. Research published in The CPA Journal shows that negative perceptions around work-life balance have contributed to industry turnover. This perception issue has also been a major hurdle for Gen Zers seeking work-life balance.
According to Andreessen Horowitz, the functional areas where AI and automation can be most useful to accounting professionals include data collection and ingestion, automation of report generation and filing, and deeper analysis of client service insights. Continued adoption of technology that makes these traditionally time-intensive processes more efficient can greatly impact how entry-level accounting jobs are perceived.
Less Manual Tasks Could Lead To Higher Value Work Opportunities
As adoption of AI and automation grows, employers can offer accounting talent more opportunities to focus on higher caliber work. The use of new technology requires professionals to learn modern analytical skills that can be applied to areas such as financial modeling and data visualization. The greater opportunity to contribute to more valuable tasks should, in turn, make the field more attractive to young professionals. By reducing time for manual work, accountants can spend more time engaging meaningfully with their clients in terms of improving communication and client service – a good result for all.
Despite the compelling applications of AI and automation that we’ve already seen in the accounting industry, skilled accountants are still in high demand, and they will continue to be. Data from the U.S. Bureau of Labor Statistics shows that employment of accountants and auditors is projected to grow by 4% from 2022 to 2032. AI will not replace soft skills such as emotional intelligence, communications skills, creativity and collaborative thinking, which remain vital to providing context and making judgement calls.
The accounting profession must take notice of the need to lean into the AI and automation-driven future that the next generation of accountants will have to navigate. Continued adoption of these technologies is not only key to unlocking new efficiencies, but also integral to fixing the perceptions that have contributed to the current shortage.
