The impact of automation on the accounting profession

Abstract

Purpose: The objective of this study is to analyse the current and anticipated impact of automation on the profession. The study also aims to identify the primary benefits and challenges that automation presents to the industry. Additionally, the research seeks to ascertain whether the industry is keeping pace with the rapid advances in automation technology, and whether future generations are being prepared to navigate these changes in the profession. Design: This study employed a qualitative approach, consisting of 15 semi-structured interviews conducted with both accounting professionals and academics operating in the Maltese Accountancy Profession. Findings: Although all interviewees have experienced some level of automation during their professional careers, the study concludes that automation is still a relatively new phenomenon in the profession and has considerable room for improvement. The study further reveals that automation will transform the role of the accountant from a data inputter to an advisor who provides value-adding services. Based on the findings, the study identifies the primary benefits of automation as efficiency, accuracy, cost savings, and the potential for maximizing the capabilities of accounting professionals. Conversely, the study also highlights the significant challenges of automation, including costs, adoption and resistance to change, dependence on automation systems, and cyber risk. In assessing the preparedness of the accounting profession, the study identifies a lack of basic automation knowledge among recent accounting graduates. To address this gap, the study recommends reviewing the educational system, emphasizing soft skills, and investing in internal training programs. Conclusion: This study concludes that while the introduction of automation may encounter resistance and disruption, it represents a positive change that will enhance the attractiveness of the profession and provide opportunities for professional growth. The study's findings on the decline in trust toward the current educational system highlight the need for a thorough review and revision of the system to better prepare accountants for the current and future world of work. Value: This study serves to raise awareness of the integration of automation within the accounting profession, which will inevitably bring about a significant change in the roles and responsibilities of professionals within the field. The findings of this study can be utilized to analyse and proactively address the potential impact of automation on the profession.