{"id":23829,"date":"2023-07-25T12:59:23","date_gmt":"2023-07-25T12:59:23","guid":{"rendered":"https:\/\/envoice.eu\/?p=23829"},"modified":"2025-06-26T14:57:02","modified_gmt":"2025-06-26T14:57:02","slug":"future-of-accounting","status":"publish","type":"post","link":"https:\/\/envoice.eu\/en\/blog\/future-of-accounting\/","title":{"rendered":"The Future of Accounting: Navigating Changes in an Evolving Industry"},"content":{"rendered":"

Accounting continues to grapple with challenges on two fronts \u2013 attracting talent and making the most of emerging technology.<\/span><\/p>\n

With the speed of change, industry leaders are quickly realizing that traditional accounting will shortly no longer be sustainable. Accounting will continue to change. This is what that means for accounting professionals and companies.<\/span><\/p>\n

Shrinking Talent Pools Make Accountants More Valuable Than Ever<\/span><\/h2>\n

A US study of the CPA industry revealed that 25% of partners in large accounting firms are over 60 years old.\u00a0<\/span><\/p>\n

For a smaller accounting firm, the numbers are even higher at 40%.<\/span>[1]<\/span> The accounting sector needs to find more ways to appeal to younger professionals.\u00a0\u00a0<\/span><\/p>\n

Recruitment, employee retention, and succession planning are top priorities for the accounting profession. Solving the talent crunch requires new strategies. Young accountants now have more options. They don\u2019t have to stick to doing boring and repetitive accounting tasks. While the decline in young accountants is more obvious for many accounting firms, the same trend exists for other organizations.<\/span><\/p>\n

About 94% believe that the biggest challenge for the profession is the decrease in younger accountants. In the past year, 90% reported hiring challenges, especially in finding people with experience of more than five years.<\/span>[2]<\/span><\/p>\n

Companies must rethink their strategy in managing accounting talent \u2013 including technology updates such as invoice approval software<\/a>. Almost all CFOs believe that improving technology will help them attract and retain employees.<\/span>[3]<\/span>\u00a0<\/span><\/p>\n

Solving the talent gap and producing skilled accountants requires companies and firms to make fundamental changes in performing accounting work.<\/span><\/p>\n

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Courtesy of Canva\/GettyImages<\/figcaption><\/figure>\n

Higher Wage Demands for the Accountancy Profession<\/span><\/h2>\n

About 69% of accountants feel satisfied with their jobs, and 82% plan to recommend the field to younger professionals due to their earning potential and strong salary. However, satisfaction levels over existing wages have lagged.<\/span><\/p>\n

The impact of inflation is the biggest work-related concern for accounting professionals across the globe. Employers must keep up with rising salary expectations to attract and retain talent \u2013 a challenging task during an economic slowdown.<\/span><\/p>\n

Mobility opportunities for accounting professionals make it even harder to keep up with the demand for higher compensation to retain employees. In one survey, 55% of accountants indicated plans to leave their current employer in their next move. Younger professionals, those belonging to Gen Z, are the most mobile, but more than half of employees in Generation X also have plans to move.<\/span>[4]<\/span><\/p>\n

As companies struggle with the increasing cost of hiring an accountant, it becomes imperative to re-evaluate processes and systems to allow your accounting team to focus on value-added tasks to either generate revenue or increase cost savings.<\/span><\/p>\n

Off-shore Strategies on the Rise<\/span><\/h2>\n

Despite the economic slowdown, accountants reported being busier \u2013 43% handle at least 40 clients.<\/span>[2]<\/span>\u00a0<\/span><\/p>\n

With the talent shortage in the field, practices such as onshoring, offshoring, outsourcing, and hiring non-CPAs to fill roles have increased.<\/span><\/p>\n

Companies have expanded their talent search to professionals in countries with cheaper labor. The trend will likely continue since many tax and accounting firms want to reduce operating costs without compromising work quality.<\/span><\/p>\n

Having an excellent offshore strategy also allows companies to free up work for younger accountants so they can focus on meaningful tasks.<\/span><\/p>\n

Greater Focus on Reducing Burnout<\/span><\/h2>\n

While the accountancy profession is likely to embrace hybrid work arrangements, a survey reveals that more than 50% of accounting professionals do not have a flexible working practice.<\/span>[4]<\/span> However, finance professionals who work hybrid appear happier with what they do than those who report to the office.<\/span><\/p>\n

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Courtesy of Canva\/GettyImages<\/figcaption><\/figure>\n

Companies may need to evaluate how existing work arrangements affect the mental health and well-being of accountants. Among accounting professionals, addressing burnout is the second most significant work concern with 88% wanting a better work-life balance.<\/span><\/p>\n

Accounting is notorious for long hours and stressful work environments. Companies now have the option to bring in new accounting technology to increase productivity, allowing professionals to focus on value-added tasks.<\/span><\/p>\n

Growing Utilization of Emerging Technologies<\/span><\/h2>\n

Technology updates are inescapable for accounting and finance professionals. For accounting firms, tech investments are a top priority and it is the tactic CPAs use to address capacity challenges and improve work quality.<\/span>[6]<\/span><\/p>\n

The expected average spending on technology improvement and upgrades in 2023 alone is $15,800. To maximize operational efficiencies, most firms plan to invest in automation tools, AI, and blockchain.<\/span><\/p>\n

Innovation plays a significant role in the future of accounting with 41% of accountants citing technology improvements as the reason for having higher revenues. About nine in 10 accountants also indicated that technology allowed them to support the growing needs of their clients in the past two years.<\/span>[2]<\/span>\u00a0<\/span><\/p>\n

Among the most impactful technologies in accounting include the following.<\/span><\/p>\n

Remote Work Solutions<\/b><\/h3>\n

Structural shifts in how people work are likely to continue. In advanced economies, 20 to 25% of employees have the potential to enter a work-from-home arrangement from three to five days a week.<\/span>[5]<\/span><\/p>\n

Hybrid work arrangements will continue to be the norm. Professionals in the field also value the freedom that comes with setting their own schedules and creating a better work-life balance through remote work. However, the importance of flexibility varies \u2013 70% of staff positions give it the highest priority while only 54% of executives do the same.<\/span><\/p>\n

Since hybrid models are likely to be permanent for some companies, companies should invest in technology that supports remote work. Management practices of offshoring also fuel the demand for technology that allows accounting teams to process financial data without reporting to the office.<\/span><\/p>\n

Robotic Process Automation<\/b><\/h3>\n

The traditional IT infrastructure of companies does not include robotic process automation (RPA), but it is quickly becoming common in many organizations. About one in 10 CPAs plan to add RPA technologies to increase productivity and operational efficiencies in the back office.<\/span>[6]<\/span><\/p>\n

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Courtesy of Canva\/GettyImages<\/figcaption><\/figure>\n

Robotic Process Automation is a virtual bot that mimics human interactions \u2013 clicks and keystrokes – with apps to perform accounting processes. RPA bots can take over tasks such as:<\/span><\/p>\n