The traditional method of accounting dates back to 1495 and was designed by an Italian monk. It is still the basis of most accounting programs but no longer suits today’s entrepreneurs. Below are the seven reasons you should no longer work with the traditional accounting method.
Many people ask me: Do you like doing bookkeeping? Most people would answer this question smiling “No!” without thinking twice. But I’ve been doing the job of an accountant for 18 years, and I can give a single answer here:
YES, I love the job of an accountant: It’s not just the company’s figures but also how these are created and what develops from my work. The statistics I prepare can have a significant impact on management’s decisions. I am also fascinated by how you can adapt processes so that the accounting department can remain lean despite the excessive growth of a company.
The Traditional Tasks of the Accountant are Automated
That’s why I’ve been thinking about how the job of an accountant has changed in recent years and how this could change in the future. The Oxford University study “The Future of Employment” inspired me to do this. Here, some scientists have asked themselves which jobs are easiest to automate and thus fall victim to automation with the help of computers the quickest. It turned out that the position of an accountant is one of the most vulnerable. Of the 702 job profiles examined, it is ranked 671! He’s far behind when it comes to job security.
In the age of Industry 4.0, the fear that new technologies will increase the unemployment rate of accountants is a constant source of discussion. But the more digitization progresses, the clearer it becomes that this fear is invalid. On the one hand, technological progress makes many traditional activities superfluous. At the same time, however, there is also an endless range of new fields of activity requiring more highly qualified workers.
Accounting for the Future Includes Controlling Strategic and Entrepreneurial Thinking
It also applies to bookkeeping: in the future, employees in the finance department will no longer have to type in invoice numbers and bank information or laboriously fill out Excel spreadsheets. Thanks to digital accounting, companies save significant time and money. With the right software, a lot of manual work becomes superfluous.
But why do you need an accountant at all? The answer: because accounting 4.0 will not make the profession die out, but rather change it. For complex bookings, the expertise of professionals will continue to be in demand in the future. In addition, the accountant will have to take on tasks such as checking and monitoring the system and digital maintenance.
In summary, the following points could include the future work of the accountant:
- Develop strategic action plans
- Formulate forecasts for future developments
- Check and optimize computer-controlled processes
According to many different forecasts, the new way of bookkeeping will prevail. The accountant will, therefore, take on more responsibility in data analysis and management consulting. In conjunction with the appropriate accounting software, the accounting system can relieve the accountant of numerous tasks depending on the range of functions.
In my forecast for the future, I have identified two megatrends in future bookkeeping. These two megatrends are:
- Cloud
- Automation
Combining these two trends will offer entirely new accounting methods in the future. In recent years, I have studied all these topics and successfully implemented them in many projects.
Nowadays, accounting can and should be done differently. With the new accounting method, ‘Entrepreneur Oriented Accounting,’ you as an entrepreneur are once again central. With this, you meet the requirements of the Tax Authorities, you understand your accounting yourself, you enter everything correctly and definitively in one go, and the reports provide you with real-time information.
All reports, even the annual report, come from the accounting system at the touch of a button. Jortt invented Entrepreneur Focused Accounting, which is suitable for all companies, from freelancers to general partnerships, BV, and partnerships with a turnover of up to $12 million annually.
Therefore, I believe the accounting profession is not dying out – no, it is changing. It may be massive for some, but the change must be accepted with the help of technology and translated into new areas of responsibility. Complete Controller is a perfect example of that. We shattered the accounting industry with our forward-thinking business model. You can learn more about us and how to thrive financially on our website and blog.
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual bookkeeping, providing service to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud platform where their QuickBooks™️ file, critical financial documents, and back-office tools are hosted in an efficient SSO environment. Complete Controller’s team of certified US-based accounting professionals provide bookkeeping, record storage, performance reporting, and controller services including training, cash-flow management, budgeting and forecasting, process and controls advisement, and bill-pay. With flat-rate service plans, Complete Controller is the most cost-effective expert accounting solution for business, family-office, trusts, and households of any size or complexity.
