accountancy, reports, Financial Services...
The financial sector has been hit with yet another technological challenge.
Automation was introduced to the industry back in the early 21st century and wasn’t really seen as the “go-to” software by The Big 4 – EY, Deloitte, PWC, and KPMG.
Automated technology started out as a BETA test within the industry to see if it could categories and sort complex COGSs more efficiently, but once automation evolved further it was predicted to start affecting companies hiring practices, (The Financial Times Reports) raising alarm bells throughout financial & accountancy services.
According to research conducted by Frey & Osborne in The Economist’s Article back in 2014 - 47% of job categories were open to automation within the next two decades, with accountants and auditors being the second highest in terms of risk factor.
Automation has now developed further but still hasn’t been significantly applied to the industry, currently being the second strategic priority after processing improvements. It has now been predicted that at least 56% of roles could be replaced. The ACCA recently argued against their own release on the subject “The Robots are Coming?” Stating that there will be a significant number of challenges when it comes to adopting robotics and automation into the financial services in general.
The war is not over
Accountants are now embracing the new AI technology, instead of trying to innovate themselves and working even harder, they are now using the automation software to improve the quality of their audit work; by carrying out tasks more efficiently and accurately, by doing this they are avoiding future high-profile mishaps.
“Let us not forget that accountants’ roles have evolved over time; they are no longer just number crunchers. Businesses rely on their financial teams to provide strategic advice on top of compliance and cost-saving guidance.” – David Chin, Head of ACCA
In the long run, automation would produce newly skilled jobs and increase adaptability, meaning the impact may not be as imminent or as severe as predicted. As long as accountants are willing to reinvent themselves by coming smarter and more open-minded to new technology presented to them in the future.
Advancements in automated technology have now opened up new methods for businesses when processing data and generating insightful reports, leading to productivity improvements within many professions; reducing transactional and routine task such as data entry, bookkeeping, and compliance tasks. This has increased finance and accounting professionals overall timescales, allowing them to focus on more value-added services.
At Sewell Wallis, we know that the advancements in new technology within the professional environment can be daunting, but we aim to work with our clients and candidates to ensure we all develop together.
If you are looking to progress within your career or increase the diversity of skills within your team you can speak to one of our consultants about a new hire or any potential new job opportunities you are interested in, please email us.