Accounting for Change in the Workplace of the Future

The benefits of automation are being studied and developed across nearly all major industries, but one major report says “few are more likely to benefit from automation more, and more quickly, than those in the accounting profession.”

By Justin Hatch - Reach Reporting. 

Growing up in a small Canadian town outside of Edmonton, Alberta, I was raised in an entrepreneurial environment. My dad was an entrepreneur, and I adopted that thrill-for-creating-a-business mindset as well.

When I was 20, starting with just a paintbrush and a roller, I started my own painting company. The venture had humble beginnings, but hard work, a desire to succeed, and positive word of mouth helped the company see steady growth. One of the most important lessons that experience taught me was that you don’t have to be in business very long before realizing just how little you might actually know about business.

That being said, looking back on the past and learning from it is inherently easier than peering into the future—yet fortune smiles upon those who are able to do just that. When it comes to accounting, let’s look at a few of the trends that will likely pay dividends in the workplace of the future.

Business Finds a Way

“Life finds a way” is one key line in Jurassic Park, spoken by Jeff Goldblum. Adapting that quotation slightly, one could easily say that business finds a way. The ever-adapting workforce has clearly provided a prime example of that very thought since March of 2020. There’s nothing like a pandemic to completely turn expectations of the typical business workforce model on its ear.

When it comes to hybrid work environments—melding both remote and office work expectations, along with its effects on the traditional work week—it’s safe to say that the genie is not only out of the bottle but also likely to never go back in. Many businesses have not simply survived in these circumstances but thrived as well. What started out of necessity has become a model for what many employees now expect.

At least for the foreseeable future, the (1) flexibility of hybrid work opportunities and (2) prioritizing getting the job done over the 9-to-5 timetable will be big factors in the employer-employee relationship. Companies that accept and plan for that eventuality in the workplace of the future will be better positioned to roll with the continued changes.

Recruiting and Retention

Respondents to a 2019 Accounting Firm Operations and Technology survey identified “recruiting and retention” as the single most common challenge. When breaking the survey results down by the size of firms, it was the top concern listed for both medium- and large-sized companies (comprising less than 100 employees) while tying for third with respondents from extra-large firms.

The study noted that while the number of accounting graduates was up 50 percent between 2005 to 2017, the number of CPA exam candidates remained flat for over 10 years, making it hard for CPA firms to staff positions for promotable associates, senior associates, and managers. 

Keep in mind that these staffing issues were a challenge even before the onset of the Great Resignation. The workplace of the future will need to address what factors are most important to employees to achieve success in the recruiting and retaining arena. That could be salary, flexibility, company culture, benefits, or a combination of additional perks that appeal to employees now and in the foreseeable future.

Welcome to the Machine

The benefits of automation are being studied and developed across nearly all major industries, but the Accounting Firm Operations and Technology report states that “few are more likely to benefit from automation more, and more quickly, than those in the accounting profession” due to the ability to apply automation to repetitive tasks.

I like to compare this to using a Roomba: I love coming home and seeing all those perfect little lines on the carpet. What automation can do for CPAs is enable them to not waste valuable time “vacuuming the floor.” It will save countless hours by freeing them up from completing rote tasks like punching numbers into spreadsheets to spend more time on weightier advisor responsibilities or growing their practice.

At the least, the accounting workplace of the future will be more reliant on automation than it is today. Advancements in current technologies—let alone technology disruptions in the industry that have yet to be initiated or even dreamed of—will undoubtedly alter the workplace in ways we can’t quite yet comprehend.

Follow the Money and Protect It

It should come as no surprise that finance departments are a prime target of hackers. Those breaches can lead to the loss of personal and credit card information, identity theft, and more. There was an unprecedented number of data breaches in 2021, with some of the biggest affecting LinkedIn and Facebook participants as well as Android users.

It doesn’t take artificial intelligence to know no business wants to be in the position of having its customers’ private information falling into the wrong hands. Even if there are no immediate financial damages, the costs to a company’s reputation can exact the highest price in the long run. Improved data security will be an important part of future accounting workplaces.

All things considered, the future is a pretty exciting realm to ponder. It’s never too early to embrace current trends while recognizing and adapting to how things are likely to be a few years down the road. When it comes to the workplace of the future, business will find a way. Will you?

About:

Justin Hatch is the cofounder and CEO of Reach Reporting, the leading visual reporting software on the market. Hatch is an industry expert in business management, specializing in software development and financial reporting. Hatch cofounded Reach Reporting in 2015 and launched in March of 2020, experiencing a growth rate of over 30 percent per month.  

Reach Reporting, awarded the 2020 Best Value and Ease of Use award from Capterra, provides software that simplifies the complexity of financial data, allowing accountants to relay quick, actionable, and decisive information to their clients. Hatch is passionate about educating advisors through a software that will save them countless hours.  

Hatch believes in finding and pursuing his passions. He is also a strong believer that the relationships we build with both business associations and clients will provide much future value.