Accounting’s digital future
Interested in becoming a CPA? Embracing tech as a student is a smart way to prepare for your career
It’s hard to imagine, but there was once a time when accountants filled paper balance sheets by hand and risked papercuts from sorting through piles of paper (and shoeboxes of receipts, if you happened to be a tax specialist).
Like so many things in our world, accounting has evolved greatly since the start of the digital revolution, but the biggest changes may be yet to come as the field embraces automation, artificial intelligence (AI), cloud computing, digital communication, and other innovations.
The next generation of CPAs are well-positioned to both master these technologies and leverage them in their own careers. “I think they’re coming up at the right time,” says Aamar Yaseen CPA, a partner consultant with Xero, an accounting software company. “The more they can lean into the technology side of things, the more successful they’ll be in future.”
Technology races ahead
Aamar has seen a ton of change in the field since he got started in 2012. “When I was doing my articling, it was about trying to get the work done as quickly as possible because there was so much to be done,” he explains.
When Aamar began his accounting career working for firms like Deloitte and Grant Thornton, Microsoft Excel formulas were the name of the game. “At the time, it seemed pretty slick,” he says with a laugh.
In short order, the field began adopting a variety of online platforms to automate repetitive tasks, increasing efficiency. “Something that would take an hour now takes 20 or 30 minutes,” he says.
Aamar’s employer, Xero, is one of a number of cloud-based accounting platforms to emerge in recent years (others include Intuit Quickbooks Online and Freshbooks). Today’s CPAs can also use cloud-based software to share business information with stakeholders (like Spotlight Reporting and Sage Intacct) and manage payroll systems (such as Payment Evolution and Zoho). There are also a myriad of apps that integrate with some of these big platforms, such as Hubdoc, which uses a phone camera to scan receipts and record the data.
Accounting in a high-tech age
Aamar notes cloud-based computing means accounting professionals can work anywhere, anytime. “There are firms who don’t have a physical office anymore,” he says.
Cloud-based software also makes it easier for CPAs to share data with colleagues or clients and more quickly access the information they need. “Instead of having to go through 30 pages of client documents, you can open up your phone or other device, and see your client’s information,” he says.
Technology is also changing the nature of accounting work itself. Steve Janz CPA, CGA, an accounting instructor at SAIT, points out that as AI takes on more of the tedious tasks, accountants can focus on more analytical work. This means advising clients on financial strategies and planning, but he anticipates CPAs will also spend more of their time analyzing the huge amount of data being collected. “Someone has to have the skills to synthesize that data and make it so we can make good decisions—and that’s not easy,” he says.
Preparing the next generation
As a long-time educator, Steve has long incorporated technology in his classes. Nearly 20 years ago, he had an “aha” moment when a student asked why he was only teaching the theory behind a software. Steve agreed hands-on learning was needed and began hauling a cart of 30 laptops to and from his classes so students could practice.
Now, he teaches classes that allow students to become proficient in Xero, Spotlight Reporting, and Payment Evolution. (He’s also written manuals for all three.) Students receive official certifications after completing the online certification requirements, which is a course requirement.
On top of this, Steve uses a lot of technology in teaching his online and in-person classes. He relies on better-known platforms like YouTube (Lightboard-style videos), Power BI, Solver, Excel (pivot tables), and Prezi, as well as up-and-coming education technology such as virtual reality simulations.
Recently, Steve partnered with Mursion to create an avatar-based virtual reality communication project for accounting students, which he piloted earlier this year with funding from the CPA Education Foundation and the Canadian Academic Accounting Association. The crux of the project was a 2D virtual reality simulation in which students had to persuade a “client” to switch to Xero from their existing software. In this safe online environment, students could practice their communication skills without fear of judgment.
“It’s great to have technical skills, but can you communicate with the client? Do you have persuasive skills? Do you have the skills to listen?” he asks. Especially during a time of hybrid communication, the next generation of CPAs must be skilled at communicating both online and in real life and have the confidence to succeed in these situations.
Steve recommends prospective CPAs seek out opportunities to advance their tech skills before they’re in the job market—but it’s likely they don’t need much persuading: “This is a generation that loves technology and embraces it.”