The Future of Bookkeeping and Accounting with Bots and AI - Replace or Liberate?

The rise of automation and artificial intelligence (AI) has ushered in a new era for the professional services sector, provoking both excitement and concern. A recent article by ‘Accounting Today’ quoted Thomson Reuters, stating, “In the professional services sector, it’s not uncommon to wonder if robots will someday make the role of humans obsolete. With the dawn of automation, robots are faster, more accurate, and don’t mind mundane tasks. However, the rise of robots may not necessarily lead to less jobs, but more interesting work for humans”. This statement captures the crux of an ongoing debate: will automation ultimately replace human roles? Or will it reshape them for the better? In this article, we explore multiple perspectives on the potential impact of automation and AI in the accounting and bookkeeping professions. We will delve into both the opportunities and challenges that lie ahead.

future of accounting

Viewpoint 1: Automation as a Catalyst for Job Evolution

Thomson Reuters’ perspective suggests an optimistic future where automation does not eliminate jobs, but transforms them. According to this viewpoint, automation could relieve professionals of repetitive, low-value tasks. This includes the likes of data entry, invoice processing, and basic reconciliations. This shift would allow accountants and bookkeepers to focus on more strategic, value-added activities like financial analysis, advisory services, and client relationship management.

A 2023 survey by Deloitte supports this outlook. It reveals that 56% of accounting professionals believe automation will enhance their roles rather than diminish them. The majority of respondents indicated that they anticipate a future where their work becomes more engaging and intellectually stimulating, while machines handle the routine tasks. This view aligns with the broader trend toward the “humanisation” of work. This is where technology enables professionals to leverage their uniquely human skills, such as critical thinking, creativity, and emotional intelligence.

Viewpoint 2: The Risk of Job Displacement and Economic Inequality

However, not everyone shares this optimistic vision. Critics argue that the widespread adoption of AI and automation could lead to significant job displacement. Particularly for entry-level positions and tasks that are easily automated. A 2022 study by the Brookings Institution warned that nearly 25% of jobs in the United States are at high risk of automation, with the accounting and bookkeeping sectors among the most vulnerable.

This potential for job displacement raises concerns about economic inequality and the accessibility of career opportunities. While seasoned professionals might transition to more strategic roles, those at the beginning of their careers could find themselves with fewer entry points into the profession. Furthermore, the potential for cost-cutting measures by firms eager to leverage automation might exacerbate these trends. This could lead to a leaner workforce where fewer individuals are required to manage larger volumes of work.

Viewpoint 3: The Necessity of Upskilling and Continuous Learning

Another critical perspective centres on the importance of upskilling and continuous learning in response to automation. Rather than viewing technology as a threat, this viewpoint emphasises the need for professionals to adapt by acquiring new skills that complement and enhance their technological capabilities. For instance, proficiency in data analytics, AI tools, and digital literacy. These are becoming increasingly vital for accountants and bookkeepers to remain relevant in the evolving landscape.

The World Economic Forum’s ‘Future of Jobs Report 2023’ highlights that nearly half of all employees will need reskilling by 2025. It showed the financial services sector is particularly affected. Firms that invest in training and development programs to equip their workforce with these skills are likely to be more competitive in the long run. Moreover, individuals who proactively seek to expand their knowledge and expertise will be better positioned to navigate the changing job market.

Viewpoint 4: The Ethical Implications of Automation

Beyond the economic and professional considerations, there are ethical implications to consider in the widespread adoption of AI and automation in accounting and bookkeeping. Automation can lead to more efficient and error-free processes. However, it also raises questions about accountability, transparency, and the potential for bias in AI-driven decision-making.

For example, if an AI system is used to making financial decisions or provide recommendations, who is responsible if the system makes a mistake? Additionally, as firms increasingly rely on algorithms, there is a risk of unintentional bias being introduced into financial assessments. This could perpetuate existing inequalities. Such perspective urges firms to approach automation with caution, ensuring that robust governance frameworks are in place to address these ethical concerns.

Conclusion: A Balanced Approach to the Future of Work

The quote from Thomson Reuters encapsulates a broader conversation about the future of work in the professional services sector. Automation and AI offer the promise of more interesting and fulfilling work for humans. Yet, they also present significant challenges that cannot be ignored. A balanced approach, one that embraces the benefits of technology while mitigating its risks, is essential. It means ensuring a future where both businesses and their employees can thrive.

For practices and firms providing accounting and bookkeeping services, this means investing not only in technology but also in their people. This can be achieved through upskilling, ethical governance, and a commitment to creating inclusive and equitable workplaces. By doing so, they can navigate the complexities of the digital age and emerge stronger, more innovative, and better prepared for whatever the future holds.

In this evolving landscape, the role of humans is far from obsolete. Instead, it is being redefined, with the potential for professionals to engage in more meaningful and impactful work than ever before. The key lies in how we choose to embrace and shape this future.

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