Emerging issues and future trends in the accounting profession- a paper presented at the 49th induction of ICAN May

2012

Future trends

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Future trends
These trends in our profession are reflective of larger societal shifts. The trends include: Shifting business environment and new opportunities Demographic shifts changing the face of professionals and clients Technology changes High-Touch Client Outreach, Relationships and Service

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Shifting business environment and new opportunities

Many services currently provided by accounting professionals especially low valueadded or easily automated services, such as data entry, bookkeeping and simple tax returns will become less profitable and even disappear due to competition, automation and outsourcing. Growing business complexity, knowledge requirements, regulatory and legal change and client expectations will favor accounting specialists over generalists. Specialization will lead to increased collaboration and partnering among accounting firms and other financial professionals, both domestically and internationally. Successful accounting professionals will take on new roles as consultants and advisors, providing performance management, decision support and similar services, with less emphasis on nuts-and-bolts functions such as computation and tax preparation.

Globalization, the health care industry, aging baby boomers and an increased emphasis on sustainability and sustainable business practices will create new opportunities for specialization.

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Demographic shifts
Aging baby boomers will look for guidance in the areas of financial planning, retirement and estate planning, health and elder care. Theyll turn to accounting professionals advisors as they start and run full- and part-time businesses. Tech-oriented Generation Y clients will expect to interact with their accounting professionals digitally, using online and self-serve customer support in addition to traditional methods. Women, who have been starting small businesses at twice the rate of men over the last decade, will increasingly be financial decision makers for businesses, making them an important client segment. Accounting firms will need to offer flexible work options and increased work/life balance to attract and retain talent. Those that cannot provide this flexibility will be at a competitive disadvantage. In addition to flexible work options, Generation Y workers will seek tech-savvy employers using up-to-date digital tools. This emerging workforce also expects learning and growth opportunities. Staffing at firms will need to reflect and support the growing needs of multicultural clients and those conducting international business.
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Technology changes
The amount of time and effort required and client needs for data collection and validation will be substantially reduced. Data analysis tools and software will greatly increase the opportunities to provide clients with analysis, performance management and decision-support services. Technology consulting opportunities for accounting professionals will increase. Data management, security and privacy consulting opportunities will be particularly strong. System integration, training, installation, support and reselling opportunities will increase. Mobile and any time/any place technologies will allow tax and accounting professionals flexible work options and client interactions while maintaining superior client service standards.

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High-Touch Client Outreach, Relationships and Service

Accounting firms will need to develop or source online marketing expertise and use their web presence to highlight their skills, areas of specialization and scope.

Online social networks will become a key source of client referrals, prospects and new clients.
Social media will increasingly be used to establish firm reputation and brand. Automating and improving client service through the use of the Internet and CRM systems will be required to meet growing client support expectations.

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Qualities of the Accountant of the Future

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Qualities of the Accountant of the Future

These will include: Personal attributes, which include insight, sound professional judgment, project management skills, integrity and ethics Leadership qualities of strategic thinking, planning and a cross-functional perspective Broad business perspective, which includes a good understanding of ones organization and industry, risk management and organizational systems and processes Functional expertise in the traditional technical skills, including financial management and taxation Strong communication skills, be well versed in IT, be committed to life time of learning

Ability to combine technical skills with strategic vision, see himself as a professional advisor and business partner.

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Conclusion

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Conclusion
The next decade will witness societys transition to mobile and social commerce, driven by new technologies that allow consumers and businesses to compete locally and globally. This shift will drive consumers and businesses to turn to accounting and tax professionals for competitive strategies to navigate the global marketplace, not just prepare financial reports and tax returns. As small businesses embrace social networks, so must accounting professionals.

Globalization will be the norm, as small businesses use web access, real-time manufacturing, and mobile marketing to reach across borders for customers and suppliers. Accounting professionals who are knowledgeable in international standards, regulations, and processes will thrive.
Accounting firms will increasingly rely on each others capabilities and collaborate to compete more effectively in the international marketplace.

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References
CIMA publication - Accounting trends in a borderless world - November 2010 IFAC News April 2011 CGA Magazine Interview with Inter-american Accounting Associations Pierre Barnes on global accounting issues - May/June 2006 Intuit 2020 report February 2011 The Accountant Magazine ISAs most crucial issue facing profession March 2011

PCAOB website
International Journal of Disclosure and Governance September 2010 Paper by Prof. Barry J. Cooper, ACCA The Accountant of the Future (2002)

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