Like many other sectors, the accounting industry is experiencing a significant labor gap as demand for services grows while the supply of qualified professionals struggles to keep pace. From students electing to pursue other degrees and the silver tsunami of retiring generations, job openings for accountants and auditors are expected to reach 136,400 annually between now and 2031.
To lure in talent, some of the larger firms in the industry are offering increased salaries or tuition assistance. However, these financial incentives are not enough to shake the stigma of the industry’s often-unbalanced workload and the dread of repetitive tasks like manual data entry. As a result, many accounting firms are setting their sights on technology to combat this growing deficit and entice the next generation of accountants.
Accounting using AI: A Catalyst for Transformation
The rise of artificial intelligence (AI) presents a transformative solution to the financial industry’s labor gap.
AI technologies encompass a range of enhanced technological solutions like machine learning (ML), natural language processing, and robotic process automation (RPA) to flip the script and revolutionize how accounting firms operate.
Accounting isn’t the only sector seeing the immense value of automation in the workplace – (91%) of CEOs across various industries plan to invest in these technologies to recruit and retain talent. Leveraging these technologies can significantly alleviate the burden of routine tasks, allowing accountants to focus on higher-value strategic work.
Mitigating Workload Pressures
The role of AI in tackling the scarcity of qualified talent is pivotal.
According to a report by Deloitte, 82.4% of hiring managers in the finance and accounting divisions of public companies struggle to retain talent. This challenge, combined with constrained budgets and inadequate technological infrastructure, further accentuates the workload burden faced by numerous accounting administrators.
One of the immediate benefits of AI in accounting is the automation of repetitive and time-consuming tasks in the bookkeeping and tax preparation process. These tasks, which include data entry, transaction categorization, and reconciliation, are prone to errors when performed manually. AI algorithms are employed to extract pertinent details from invoices, receipts, and similar financial documents, a process that effectively removes the necessity for manual data entry.
Additionally, AI-powered systems can quickly and accurately process large volumes of data, freeing up accountants to concentrate on more strategic endeavors like financial analysis, forecasting, decision-making, and other client support.
The Human-AI Collaboration
While AI presents numerous advantages, it’s essential to acknowledge that the technology is not meant to replace human accountants but rather to augment their capabilities. The future of accounting lies in a harmonious collaboration between human expertise and AI-driven automation. This collaboration empowers accountants to focus on value-added tasks such as strategic planning, advisory services, and cultivating client relationships.
Preparing for the Future
The evolving landscape of the tax and accounting industries demands a response to the labor gap, and the emergence of AI offers a promising solution. As the demand for services continues to outpace the supply of qualified professionals, these industries find themselves at a crossroads. While enticing talent through financial incentives has its merits, the stigma surrounding monotonous tasks remains a challenge.
The integration of AI technologies presents a transformative way forward, liberating tax and accounting professionals to focus on strategic initiatives and client-centric activities, delivering unparalleled value, innovation, and client satisfaction.
