Accounting professionals are facing an uphill regulatory and technical battle. Their digital arsenal is also changing as a result. Over the last decade, the sector has been forever transformed by e-invoicing tools, automation and artificial intelligence (AI). In fact, 70% of accountants think that AI will have a positive impact on their jobs (Accounting Today (2022)).
This digital transition in the accounting world is saving professionals from doing low value-add tasks so they can instead focus on new functions. But what challenges are actually being overcome? And how is it benefiting the profession in 2024? Let’s break it all down.
I. The three stakes of an accounting sector in flux
1. Regulatory reforms
New accounting regulations have hit the scene over the last several years. Let’s look at three examples.
International accounting standards (IFRS)
While the IFRS are generally complex, they aim to provide a global format for financial statements. To this end, accountants have to:
- receive training,
- establish a continuous monitoring system, and
- obtain compatible accounting tools.
E-invoicing
Digitized invoicing is gradually becoming mandatory. You can look up countries on this interactive map to see their level of progress towards this reform.
The Corporate Sustainability Reporting Directive (CSRD)
This European directive that went into effect on January 1, 2024, requires companies that meet certain staff and revenue thresholds to report on the sustainability of their business activities. It applies to more than 50,000 organizations in Europe. Accounting and finance departments must assist with generating the indicators mandated by this new law.
2. The core element of accounting: data processing
There’s an accounting translation for every transaction, so the accounting function serves as a repository for all data.
Anne-Delphine Beaulieu
Chief Digital Officer at the LISI Group
Electronic Invoicing Day 2024
With new standards and the continuous acceleration of digitization, accounting staff have to process, manage and secure growing volumes of data. In order for accounting professionals to successfully adapt to these changes and support their companies, they need to level up their skills in these areas.
3. A new corporate role
All of the legal and technical changes mentioned above are causing a major shift in the role that accountants play. They are now moving toward:
- focusing more on financial analysis, forecasting and consulting,
- collaborating with the IT department to set up automation tools, and
- working closely with operations departments to organize data.
The transition thus requires human resources support to help train the staff, hire people with targeted skills and provide change management.
II. Recognizing expertise during the accounting sector’s digital transition
Eliminating time-consuming tasks
Process automation reduces or does away with repetitive and time-consuming tasks that add little value, such as:
- Inputting invoice data
- Reconciling orders, delivery slips and invoices
- Managing expense accounts
- Reconciling bank accounts
- Handling reports
- Filing tax returns
- Closing the books
- Preparing cash flow forecasts
Your accounting department gains productivity and saves time, which can free it up to conduct more in-depth analyses and focus on tasks that add more value.
It takes the equivalent of one FTE to process 400 invoices per day. Automation saves all that time spent resolving exceptions, which is a real value-add for accounting.
Christiane Rebaud
Accounts Payable SSC Manager
Upscaling analyses
Digital invoicing tools also leverage three other functionalities:
- AI-powered algorithms that detect errors, fraud risks and financial report discrepancies
- Process optimization
- A macro view of accounting data for real-time tracking and more accurate cash management and budget monitoring
Rewarding projects with higher added value
When accounting professionals aren’t bogged down by tedious operational tasks, they can move on to provide advisory support and focus on predictive rather than descriptive analyses. That means your employees can weigh in on the company’s strategic decisions. As for accounts payable tasks, they can focus on managing special cases and analyzing order-invoice payment discrepancies.
By changing the job of accountant, you’re also attracting new talent with an interest in technology and automation.
Digitizing your accounting processes means more than just paperless invoices; it requires a sweeping reorganization of your departments. This is a major shift for the accounting profession, but not an existential threat.
Are you ready to embark on your digital transition? As the Source-to-Pay expert, Fluxym is here to help you plan your processes, select the right technologies, and get your staff and suppliers onboard.