We stand on the brink of a profound transformation in accounting and accounting professionals, not because of business failure, new regulation, or economic theory, but because of transformative technologies such as artificial intelligence, machine learning, and blockchain. These technologies will disrupt this noble profession, which has long been synonymous with stability, meticulousness, and adherence to established guidelines and principles. My theory of divergence emanates from two trajectories: one leading to irrelevance (for resistors) and the other to unlocking new value.
THE FIRST DIVERGENCE
The first divergence will be defined by intense automation, presenting a threat to routine functions. In this divergence, we will likely see a shift from accountants performing tasks to managing and overseeing the technology that performs them. You might then ask, ‘Where is the value of the accounting professional?’ Clearly, in this scenario, it is not the execution of the task but the governance of technology. The value will lie in governing the intelligent systems that execute tasks such as reconciling bulk transactions in seconds, processing invoices, reading contracts, identifying anomalies with precision, and categorising expenses. Intelligent systems perform these tasks with incredible speed and accuracy. With immutable and shared ledgers operating in real time, the book audits itself.
THE SECOND DIVERGENCE
The accounting professional’s evolution will define the second divergence into a forward-looking strategic advisor characterised by in-depth data analysis, interpretation, and business counsel. Machine learning algorithms are capable of handling data aggregation. Then you ask, ‘What is the value of the accounting professional?’ The value lies in the ability to interpret data produced by the algorithm − in other words to explain what the output means for the business. The ability to mine vast datasets is paramount, followed by the crucial steps of interpretation and providing business counsel for hindsight, insight, and foresight.
SPLIT OF COMPETENCE
In essence, this great divergence hinges on a split in competencies: traditional accounting skills versus the ability to mine data, interpret results, and provide business counsel that offers hindsight, insight, and foresight.
LOOKING FORWARD
What must be done to address this split in competence? Scanning the horizon, accounting professionals, higher education institutions (HEIs), and professional bodies (such as SAICA) face an interesting future. For instance:
HEIs will have to find ways to blend their accountancy offerings with data analytics; by its very nature, this would require the inclusion of machine learning.
Professional bodies like SAICA must test integration, strategic thinking and technology application alongside tax, IFRS, and auditing standards.
Accounting professionals must pursue continuous professional development (CPD) in data mining techniques, machine learning, and artificial intelligence.
CONCLUSION
Every accounting professional has to choose their path strategically. In the song ‘Khetha Eyakho’, the gospel star Sechaba reminds us that there are two paths. You have to decide whether to be automated or to become augmented. Choosing the former risks irrelevance. Choosing the latter means you have work to do: you must develop your analytical and advisory capabilities to achieve strategic foresight and become an integral part
of business success.
Author
Tankiso Moloi CA(SA), FCMA, CGMA, Executive Dean, College of Business and Economics, University of Johannesburg. He also holds a BCom, BCom (Hons),
PgP (Data Science), PgP (AI and Machine Learning), MSc, MCom, MA, PhD, and DBA
