Adapting to the New Normal
The winds of change have been blowing in the world of accounting for some time now. Automation and technology have gradually taken over routine tasks that were once synonymous with the accounting profession. Ask yourself this: Do you need a CPA to handle bank reconciliations, audit expense submissions, categorize invoices, perform data entry, verify and process invoices, or detect fraud? The answer is a resounding “no.”
CPAs are no longer defined by their ability to perform these routine tasks. Instead, their value is transitioning to the insights, judgment, and business acumen they bring to the table. As automation and AI continue to reduce the need for compliance engagements, CPAs are finding new avenues for success by serving their clients as advisors.
The Rise of Advisory Services
The COVID-19 pandemic accelerated a trend that had already been emerging in the accounting profession: the shift towards advisory services. A survey by the Thomson Reuters Institute in October 2020 revealed that 95% of tax professionals believed that their clients were seeking business advisory services. Many CPAs found themselves in de facto business advisor roles during the pandemic, guiding clients through the complexities of financial relief programs, such as the Paycheck Protection Program and Employee Retention Credit.
CPAs’ unique qualities, including their conservatism and levelheadedness, make them trusted advisors in times of uncertainty. This demand for a trusted advisor with specific skills is likely to persist, and research suggests that the required skills are already in high demand.
Key Skills for the CPA of the Future
- Strategic Thinking: In the age of technology, clients are looking to CPAs for strategic thinking and insights. Rather than just providing answers, CPAs are expected to offer a range of possibilities, solutions, and opportunities based on their clients’ financial information. They must possess a broader strategic vision relevant to today’s economy, especially as businesses navigate recovery, growth, and expansion.
- Data Adeptness: The CPA Exam’s shift towards data-driven mindsets and data analytics reflects market demand. Many businesses seek CPAs capable of using data analytics for continuous monitoring and auditing, often analyzing full data sets instead of relying on samples. Effective data analysis enables CPAs to provide actionable intelligence and advice to their clients.
- Ability to Partner With Technology: Technology is a valuable partner for CPAs, and clients expect their accounting firms, both large and small, to leverage technology tools effectively. CPAs who embrace technology can free themselves from repetitive tasks, allowing time for value-added activities such as interpreting recommendations from cognitive tools and providing clients with decision-making insights.
- Soft Skills: While technology is essential, it cannot replace personal interaction and the ability to connect with clients. Effective communication and relationship-building skills are increasingly crucial as CPAs take on advisory roles. They must explain data to clients, help them understand financial information, and articulate their interpretations effectively.
- Specialized Knowledge and Skills: As the profession becomes more complex, specialization is on the rise. CPAs are expected to develop deep expertise in specific areas rather than maintaining a broad but shallow knowledge base. Specialization allows firms to offer more focused and valuable services to their clients.
Preparing for the Future
The CPA of the future is a strategic thinker, a data expert, a technology partner, a communicator, and a specialist. To thrive in this evolving landscape, CPAs must continually update their skills and adapt to new technologies. As the profession continues to transform, CPAs who embrace these changes will not only survive but also thrive as invaluable advisors to their clients.