The future of the accounting profession: going digital is no longer just an option but rather a necessity to staying competitive

As in many other domains, the accounting profession has already been impacted by technology and automation, but rather than being disrupted, the field of accountancy is adapting and evolving instead. In this article, Mariana Dragomir, Accounting Director, and Ionuț Petroiu, Automation Team Lead at Mazars in Romania, share their thoughts and opinions regarding the benefits of digitalisation, automated processes, automation myths, main obstacles, and future plans.

Mariana, how can accounting professionals remain relevant in the digital age?

As accounting professionals, we should be open-minded, and recognise the importance of investing time and effort in understanding new technologies. Technology and specifically automation have already impacted the accounting profession and the transformation becomes more and more obvious every day. The adoption of cloud-based accounting systems, automation tools, and data analytics software is not merely a choice; it is a strategic necessity. By embracing these innovations, we will be able to identify the areas where we can bring added value to our clients’ businesses.

Secondly, another focus should be on strengthening our data analytics skills. The conventional tasks that have long defined the accounting domain are now subject to automation's embrace. Technology has streamlined functions starting from archiving or manual registration of transactions to tax returns or financial statements preparation.Therefore, by fortifying our data analytics skills, we can establish a competitive advantage that resonates in a swiftly evolving industry. This foundation, coupled with the aptitude to interpret complex financial data, shapes a pathway to sustained relevance.

Thirdly, with the help of technology we can leverage our financial expertise to provide advisory services to our clients. By automating processes, we can focus on more complex tasks and identify new products for our clients. From optimising workflows and implementing cutting-edge tools or ERP systems to crafting budgetary frameworks and contributing to growth strategies, accounting experts can become pillars of business growth.

Last and equally important, every professional in the domain must remain vigilant, aligned with industry experts, and actively engaged in professional development initiatives. This commitment to constant learning ensures that practitioners are fit to navigate the relationship between traditional principles and emerging technologies.

Ionuț, to what extent are the accounting processes automated in Mazars, and how are they automated?

At Mazars, our focus was and continues to be on automating time-consuming recurring tasks in our daily operations.

We began the process by identifying time-consuming tasks through direct discussions and brainstorming with colleagues from the Outsourcing department. After that, we started analysing, designing, and developing solutions, which we later implemented within the department for project-specific requirements.

For example:

• In the bookkeeping area, we designed robots with specialized tools and RPA to extract data from different files and formats and generate direct uploads in various accounting tools/ERPs, with just one click.
• On the reporting side, we designed a robot to generate and save accounting reports such as trial balances, general ledgers, or others, from different accounting tools/ERPs and for multiple clients at the same time.
• Since some tax returns are already embedded in the ERPs used, users usually just check the numbers and validate the final figures. In this tax compliance area, we automated an internal control process for checking if all tax returns and for all clients were submitted to the tax administration’s online platform and if all the submission proofs were saved and properly archived on our local drive.
• For the payroll team, we created a robot to reduce the time spent on payroll calculation and to have a standardised way of working. The robot processes a large volume of data by reading the timesheets and preparing the input in the payroll system. Before this automation, the entire process was done manually by a payroll consultant, and the time spent was significantly longer.

Mariana, do you see automation as an opportunity or a threat for accountants? Why?

Automation can be both an opportunity and a threat for accountants, depending on how they approach it. On one hand, automation can be a blessing for accounting professionals, because it streamlines repetitive tasks, can reduce errors, and increases overall efficiency. Automation can also provide opportunities to develop new skills such as data analytics, artificial intelligence, and machine learning, thus, enabling professionals to redesign their service offerings to their clients.

At the opposite pole, automation can also threaten the traditional role of accountants as the sole providers of financial information. As data processing and data analysis are taken over by machines, there is a risk that accountants are seen as less essential to the financial process. One may argue that the main financial processes can be handled with machines only. However, I believe that the human touch is irreplaceable, no matter the project, domain, or industry.

At the end of the day, in my view, the impact of automation on accountants depends on how they manage to adapt to new technologies and leverage them to their advantage.

Ionuț, which were the main obstacles in trying to automate the accounting processes?

During our automation journey, we identified several obstacles:

• Inflexible platforms of some accounting systems, making the integration of the new technology difficult.
• Significant costs generated by creation, implementation, and maintenance. Initial costs to invest in automation technologies will not provide immediate returns on investment.
• Resistance to change shown by some clients, being reluctant to adopt new technologies.
• Government regulations due to the lack of predictability and complex requirements.

Mariana, what are your company goals in terms of digitalisation and especially automation in the upcoming period?

Our goal is always going to be to provide our clients with value-added services tailored to their expectations and needs. If we place this goal in the current technology-based environment, I can say that digitalisation and automation are just ways to reach it. Another goal is to increase our efficiency. Last, but not least, our focus is to remain competitive in a rapidly changing environment.

Until now, we mainly focused on improving internal processes through automation and this enabled our teams to collaborate more effectively, access information in a structured way, and facilitate remote teamwork.

Our objective for the upcoming period is to personalise our services by offering our clients ideas for automating their processes and possible solutions for their internal flows.

Ionuț, do you think that technology will support, and not replace, accountants?

We are witnessing a transformation of the accounting profession, where technical knowledge is combined with technology. The accounting consultants are not involved in recurrent activities with low added value anymore, and their focus is more on the advisory area.

In our view, technology will not replace accountants. We just like to believe that an accountant who is not using technology, will be replaced by another accountant who uses technology.

I believe that bookkeeping as we know it, such as posting transactions in ERP systems, will be replaced completely by robots soon. Nonetheless, supervision from an accounting consultant will be the key since any robot must be programmed to do the job.

Moreover, even if we are speaking about Machine Learning or Artificial Intelligence, the validation of complex scenarios by an experienced consultant will still be required.

In essence, the future of accounting is defined by the dual forces of digitalisation and human expertise, creating a dynamic synergy that propels the profession forward into a domain of unprecedented efficiency, insight, and adaptability. As accountants embrace the digital age, they not only secure their relevance but also embark on a journey of growth and transformation that will shape the accounting landscape for years to come.