The accountancy profession, like every other, is shifting and adapting to the emergence of new technologies.
The past decade has seen significant transformations, with the Covid-19 pandemic acting as a catalyst to accelerate the adoption of technologies such as artificial intelligence (AI). Finance and accounting leaders across Asia are finally coming around to embracing new tech solutions.
‘A tech partner can address pain points and identify opportunities to automate’
A recent survey from cloud-based enterprise software provider BlackLine found that C-suite and accounting professionals globally believe their organisations must adapt to stay relevant. Polling over 1,339 industry leaders worldwide, the December 2023 survey found Singaporean and US respondents were most confident in the potential of AI, with nine in 10 believing that it could effectively support finance and accounting functions during business disruptions.
The survey also found that 41% of C-suite and finance and accounting professionals in Singapore did not fully trust the accuracy of their organisations’ financial data, with 30% not knowing the competency of staff manually inputting data, and 27% citing issues with clunky spreadsheets obscuring visibility for finance and accounting teams.
Resistance
While the benefits of tech adoption are on the rise, the industry has some built-in obstacles to overcome, according to Nikhil Parambath, Asia regional vice-president at BlackLine. He says: ‘Traditionally, the accounting industry has been slow to adopt new technologies. While accountants are aware of the potential benefits, there is strong inertia to stick to current processes for fear of disrupting what seems to be working well.’
While some firms may recognise their current processes are inefficient and want to modernise, they are unsure where to begin.
‘That’s where a technology partner comes in,’ Parambath says. ‘They could address pain points, identify opportunities to automate, and work with internal teams to implement solutions. Firms might find the automation process daunting due to potential teething issues, such as figuring out how to integrate automation tools with existing accounting systems, and ensuring they have been implemented correctly.’
Accounting firms in particular, Parambath says, may have to ‘ensure that the automation platform is scalable and can be customised to meet clients’ requirements during reconciliation and reporting’.
‘Look for a collaborative team with deep expertise who understand your needs’
The business case
Several factors come into play when firms consider a new technology partner, says Koren Wines, managing director at accounting automation specialist Xero Asia, with the first and most important consideration being the business case.
‘What value will a new technology partner bring to your accounting firm? How much time would it save? How could it improve productivity? Will it integrate smoothly with your current – and future – systems and processes? These are all important questions to ask as a first step,’ Wines says.
Reliability and credibility are also key, especially given the sensitive nature of financial data. ‘Security and compliance standards are crucial nowadays,’ Wines adds. ‘Any technology partner must take these seriously.’
‘This is also a good time to consider – or reconsider – a system’s true value’
Before upgrading, firms should check a technology partner’s ability to integrate seamlessly with existing infrastructure. ‘This is also a good time to consider – or reconsider – the system’s true value, from user-friendliness and the potential for customisation to data security, vendor reputation and compliance checks,’ Wines says.
Firms should consult their tech department to ensure their IT infrastructure supports new software, Parambath says. ‘Look for a collaborative team with deep expertise who understand your needs and can grow with you in the long term.’
Wines recommends discussing updates and new features with technology partners. ‘You want to be sure that a provider’s systems and services will support your firm’s growth strategies – not just today, but also in the years to come.’
Change management
Firms with a clear vision and that drive change management through effective communication are more likely to successfully transition, Parambath says. ‘An impactful finance transformation should make a compelling case for modernisation. It should convince staff to rethink hard-wired work routines and embrace new processes and applications.’
According to Parambath, a strong, clear vision should be understandable, quantifiable, measurable and achievable. As firms transform their processes, executives should identify and back change agents to ensure buy-in and tackle obstacles from the ground up. ‘Providing on-demand training sessions and instructional materials will greatly benefit employees learning new software,’ he says.
‘Understanding a practice’s specific needs builds confidence in digital transformation’
Investing time in technology upgrades can feel overwhelming, especially for busy, resource-tight accounting firms. Wines says: ‘Fear of disruption can hold some practices back from embracing new systems and processes.’
She adds there are ways to alleviate uncertainty, from case studies to education programmes and practical demonstrations. ‘At the end of the day, it’s about understanding a practice’s specific needs or concerns to build confidence in digital transformation,’ she says.
Emerging technologies will continue reshaping industry potential, Wines says. ‘This includes increased automation of repetitive tasks, enhanced data analytics and accuracy, and improved customer support and fraud detection. All of these factors, among others, are helping firms work smarter – both internally and externally.’
More information
Visit ACCA’s Practice Connect hub for resources to support small and medium practices
