By Sunusi Abubakar Birnin Kudu
Accounting, traditionally seen as the process of recording, summarising, analysing, and reporting financial transactions about individuals, businesses, or other organisations, is currently facing a transformative shift due to technological advancements, especially in Artificial intelligence. AI-powered accounting software has taken over many routine tasks performed by accountants.
AI now automates core accounting tasks such as categorisation, data entry, and reconciliation. These tools now efficiently deliver real-time financial statements and modern finance metrics. Thus, the shift creates the fear of job displacement and professional irrelevance among accounting students and accountants. This calls for accountants to adapt to those changes and avoid being irrelevant. A study published by Forbes supports these concerns, noting that among the factors that led over $300,000 accountants and auditors to leave their jobs between 2019 and 2021 is a fear of being replaced by automation.
However, this assertion has a contrary narrative. A recent survey by an automation platform called DataSnipper indicates that auditing/accounting job vacancies rose by 25% in 2024. This was attributed to the high demand for accounting personnel, the retirement of those in practice, and the role of AI in cutting down auditors’ repetitive work. The survey also indicates that 83% of the auditors in the world tend to stay in companies with AI initiatives.
These findings illustrate a key truth. AI has posed both threats and opportunities to accountants and the accounting profession. However, the determining factor lies in how accountants respond to them.
Although AI can perform many accounting functions that accountants carry out, it can’t replace the human judgment required to weigh up different variables and make an informed decision. For this reason, accountants might have a respite. However, they need to evolve from being financial reporters to becoming strategic advisors, leveraging financial data analytics (DA) to interpret data, advise their clients, and enhance organisational performance.
Financial data analytics in accounting involves making critical financial decisions for an organisation. It enables accountants to keep track of the overall organisation’s functions. Accountants with DA knowledge can help organisations to make informed decisions. They can assist organisations in maintaining records, budgeting and financial forecasting, and setting targets and projections with high accuracy.
An accountant can use DA to guide company-employee relations by establishing key performance indicators to analyse employees’ overall financial impact on the company. Through AI-driven analytic tools like Zoho and Qlik, accountants can simplify complex financial circumstances into useful information.
Furthermore, in tax consultancy and advisory services, accountants can use financial data analytics to guide clients through tax planning and compliance. They can also liaise with revenue agencies for efficient revenue collection. Data analytics tools can be harnessed by accountants based on the nature and circumstances of the clients.
Accountants who transition from ordinary financial data processing to advanced financial data interpretation tend to be more relevant to the accounting profession. Adopting data analytics helps accountants stay relevant in a competitive labour market and improves their professionalism and expertise.
The accounting profession is no longer limited to classification, summarisation, and reporting. It requires accurate data analysis and informed decisions. AI is an opportunity for accountants, not a deterrent. Accountants shouldn’t resist this development but rather adapt it, harness it, and grow. This is the only way to redefine their relevance in an AI-driven era.
Sunusi Abubakar (ACA in view) wrote this from Arawa B. Akko Local Government, Gombe State.