Technology will remove the need for management accountants

The advent of the internet brought technological change at a more rapid pace than previous,
and in the past two decades, businesses and consumers have witnessed the advent of technologies
such as social media, cloud computing and big data. Relatively young companies such as Google,
Amazon and Facebook have taken such technologies deeply with their business models.

Advances in information technology have been noted as a key force in changing

management accounting. Managers and boards continuously see advances in technology offering
potential business advantages, but also rising issues and risks.

The application of artificial intelligence, mass-automation, and hyper-connectivity in the

workplace has impacted the way in which management accountants perform their role and this
will continue. However, these technologies, should be seen as tools to help professionals perform
their roles more efficiently rather than as replacements for human accountants.

Technology is the single biggest factor impacting the finance function today and, in the
future, according to a 2017 survey by Robert Half Australia. As finance functions become
increasingly digitized, it has never been more important for finance professionals to have strong
IT skills.

With CFOs continually looking for greater efficiencies and ways to add value to the
business, it is important that finance professionals embrace digitization and look for ways to further
develop their own skill set to accommodate the change.

Companies are no longer just looking for finance skills, but also expertise in IT such as IT
auditing, management of system infiltration projects and project planning of data migration.
Candidates with such specialist skillsets will find themselves in high demand.

In largely process-led careers such as accountancy, there has been concern over the
implications of increased automation. Management accountants are likely to see a reduction in
administrative tasks in the future, but this further increases the value of their leadership and
interpersonal skills.

Increasing automation and artificial intelligence reduce the need for large teams of
graduates to complete reams of low-level paperwork. However, the role of the accountant isn’t
vanishing. Instead it is undergoing a widespread evolution, across almost all sector, roles and
regions. Sectors where technology is more intrinsic to their business model are likely to spearhead
this transition, but other sectors won’t be far behind.

Process automation, digitization and big data will have a substantial impact on the finance
function. So, the ability to adapt quickly and upskill with technology will be critical for all
accounting professionals, especially in platforms that will enable their companies to reduce costs
and increase operational efficiency.

Several accounting skills are expected to decline in importance due to workplace

automation. These may include manual calculation and tax filing for income, employment and
sales, as well as routine back-office work. Compliance reporting is also expected to become more
automated through technology and analytical tools.

Although these may seem like core accountancy functions, it does not mean there is no
longer a role for accountants. Core technical finance skills and ethics will remain critical, but
accountants will need to combine these with creativity, leadership, communication skills and
emotional intelligence.

Managing accountants can play a role in not only evaluating costs and benefits of cloud
technology, but also in ensuring that the advantages of more collaborative business processes are
communicated to managers and realized by any implementations of cloud technology.

As a conclusion, technologies cannot totally remove the need of management accountant.

However, it does reveal that technology has penetrated finance and management accounting
systems to some extent. We would expect its use to grow over time, and further research on how
the technology will affect the provision of decision-making information and the role of the
management accountant would be welcome and insightful.
References

CIMA, 2017. Technology has biggest impact on accountancy roles, say recruiters [Online]
Available from:

https://www.cimaglobal.com/Members/member-benefits/insight-magazine/Insight-June-
2017/Technology-has-biggest-impact-on-accountancy-roles-say-recruiters/ [Accessed 29/04/2019]

Scapens, R., Ezzamel, M., Burns, J. & Baldvinsdottir, G. 2003, The Future Direction of UK
Management Accounting, CIMA, London. [Accessed 29/04/2019]

https://www.cimaglobal.com/Documents/Thought_leadership_docs/Management%20and%20financial
%20accounting/effects-of-cloud-technology-on-management-accounting.pdf