Fintech is Set to Transform the Role of Future Accountants

The role of accountants is changing by the minute, and the field is rapidly shedding away it’s old, demeure, and cautious face. New technologies are making the job of accountants easier, but could also disrupt the industry in ways they couldn’t imagine. Things like open banking, cryptocurrencies, automation, and artificial intelligence could all offer tons of opportunities for the accountants of tomorrow, but could also end up creating fierce competition for their services. Let’s take a look at a few ways Fintech is set to revolutionize what it means to be an accountant and transform the future of the profession.

The Rise of Automation

There has never been a time when financial information was flowing so freely and was so easy to mine, compile, and analyze. We’re already seeing the rise of fully automated systems for credit control, invoice and accountant management, cash flow reporting, and more. But what seems to be the ultimate accounting system is when automation is combined with a human component. Machine learning and AI can be used to extract and compile data, and provide reports that can be customized by the users. A senior team of accountants could then handle more complex accounting issues, verify data for accuracy, or give direct assistance with specific needs.

The Benefits for Businesses

The benefits of automation for businesses are easy to see. For one, businesses, no matter their size, will be able to get financial information and reports in real time. This could give them more time to sense trouble brewing, and make adjustments before things become catastrophic.

Ready access to data will eventually lead to better forecasting, budgeting, and resource management. There are already tools that use AI to create automated cash flow forecast and credit control.

This could mean a world of difference to small to medium businesses who used to only have access to intermittent, and sometimes even annual, reporting, forecasting, and analysis in some cases. Businesses with limited means will appreciate the ability to have monthly reports without having to spend on management accountants.

What it Could Mean for Accountants

With access to all of these tools, the temptation to outsource or reduce headcounts will be strong for many cash strapped accounting firms, or some who’d like to adopt a leaner structure. This will be especially true for sole traders and embryonic businesses.

Others will try to redirect some of their resources now that they’re liberated from a variety of administrative duties. Accountants will slowly have to readapt and take a consulting approach. They’ll be able to use these new powerful analysis, forecasting and planning tools to help business owners identify threats early and opportunities as well.

Will Fintech spell doom for the accounting business? Probably not. But the role of accountants will change, no doubt about it. However, they shouldn’t view all these new tools as a threat. Those who embrace this technology to build their expertise and allow businesses to meet their objectives will always have an edge.