The current state of accountant shortages

The UK accounting industry is facing a crisis as a result of the shortage of professionals. An independent report published in 2023 by the Financial Reporting Council indicates that the number of newly qualified accountants has declined by 10% over the last five years. The independent report is also supported by an ACCA survey, where it was found out that up to 40% of the firms cannot find the skilled accountants they require. The gap is increasing because demand for accounting services is on the rise due to changes in regulatory requirements and an increased volume of business. Will AI bridge the gap?

The rise of AI in accounting

Artificial Intelligence (AI) becomes a new transformative power across many industries, and accounting is no exception. Technologies of AI, including machine learning and natural language processing and robotic process automation (RPA), are increasingly incorporated into accounting workflows for accuracy and compliance. These technologies can enter transactions, process them, and even perform complex financial analysis, thereby saving a considerable amount of time and work of human accountants.

What’s the potential impact of AI on the accounting job market?

The integration of AI into accounting is going to really shake up the job market. On one hand, AI can relieve much of the burden of routine tasks, leaving the accountant more time for higher-level, strategic, and value-added activities. On the other, most fears concern job displacement, especially for jobs with a high focus on repetitive tasks. Importantly, however, it would work to augment human capabilities rather than replacing accountants.

How can AI help address accountant shortages?

AI can play a critical role in addressing the current shortages of accountants in a number of ways:

Automation of Routine Tasks: AI will take charge of time-consuming tasks, such as entering transactions, processing invoices, and reconciling them to relieve accountants of such a job in order to focus on high-level work.

Better Accuracy: AI systems can significantly reduce human errors related to calculations and data analysis and therefore be the root of more dependable financial reporting.

Scalability: By being AI-driven, firms can have systems in place to handle even large transactions and more data, and they can easily scale up without necessarily increasing the number of people to handle the transactions.

Real-Time Insights: AI offers real-time insights and predictive analytics, which empower accountants to make quick and effective decisions.

Will AI replace accountants entirely?

The fear that AI will replace accountants is baseless. Although AI can automate many tasks and analytic activities that accountants previously performed, judgement-based tasks, adding value, and considering the ethical nature of business transactions are still the domain of humans. AI is seen as a tool that is going to augment the abilities of an accountant instead of replacing them. Accountants will still be necessary to interpret AI-generated data, furnish counsel in strategy, and ensure compliance with complicated regulatory mandates.

What skills will accountants need in an AI-driven world?

As AI is embedded in accounting, the skills of accountants are bound to shift. In an artificial intelligence-dominated age, the key skills that an accountant must necessarily have are as follows:

• Technical Competence: The capability to competently operate AI and similar sophisticated equipment.
• Data Analysis: The ability to interpret and analyse data generated by AI systems.
• Strategic Thinking: The ability to think in terms of top-level strategic planning and decision-making.
• Ethical Judgement: Ensuring AI is used in a responsible and ethical manner within the profession.
• Interpersonal Skills: Ability to build and maintain strong communications and relations.

Wrapping Up

AI would be a step change in mitigating the accountant shortage by bringing automation to routine tasks, improving accuracy and scalability. But replace accountants? Not really; more augment their capabilities and push them up the value chain toward strategic, analytical, and advisory roles. Moving forward in an AI-led future, one needs to change with new skills and technologies.

We understand the challenges of the accounting profession, and here at Integra Global Solutions, we are committed to helping businesses navigate the future. It’s high time now for accounting firms and professionals to embrace these advancements of AI technology. 

Integra global Solutions is a pioneer in AI powered accounting solutions. They have built ready made AI solutions for automating a variety of accounting processes. These AI solutions are tailored for accounting firms and work alongside popular accounting software including Xero, QuickBooks and Sage.