Accountants can be traced back to early civilizations that used only tokens and scripts to track financial information. The field has evolved consistently throughout history. The basics may remain the same thanks to technology, but accounting roles and processes look vastly different than they did 50 years ago, 25 years ago, or even 10 years ago. Understanding the beneficial technology available today is an integral part of becoming an accountant.
Why Technical Skills Matter for Accountants
Technology gives accountants access to real-time data, giving clients and accounting managers the information they need to make the most accurate and sound decisions. According to Stephens, technology can also help accountants with tasks such as:
- Understand the client’s tax position
- Client inventory management and purchasing decisions
- Clarify outcomes related to price changes, evolving consumer preferences and the potential impact of new store openings
Technology is also shifting accountants’ responsibilities.
“The automation of many repetitive tasks that were previously part of the accounting function has enabled accountants to become more business advisors and strategic partners,” she said.
So what kind of technology is available to accountants?
As technology evolves, so does the field of accounting. Stevens said areas where accountants previously worked with standard financial reporting and enterprise resource planning (ERP) systems are now being replaced by new technologies. These new technologies and their roles, she said, include:
- Artificial intelligence (AI) and robotics Helps automate repetitive tasks.
- blockchain Validate and maintain a record of secure transactions.
- cloud computing It enables accountants to access the system from various locations and creates an easier way to share information among employees, clients and stakeholders.
- data analysis Accountants can often reflect live data and create reports and dashboards that can be used for decision making and reflection.
- Internet of Things (IoT) It provides live data collection and access from a variety of sources, including radio frequency identification (RFID) chips, scanners, and other Internet-connected sensors and devices.
Looking ahead, in another 2022 study, the Economists Impact report (PDF source) found that 48% of executives said the most important technology they should leverage to remain competitive in the long term is I know what you think of as advanced data analysis (PDF source). In the survey, executives said other key technologies such as blockchain (35%), AI/machine learning (34%), IoT (33%) and robotic processing (29%) were also important to their long-term planning. I understand that you think there is.
Other technologies used in accounting include ERP tools such as Quickbooks, Sage 50 (formerly Peachtree), SAP, and Oracle Netsuite, Stephens said. The technology also comes with a variety of other tools that accountants have at their disposal.
According to Stephens, these are other tools available to accountants and their roles.
- data analysis software Visualize transaction outcomes, identify unusual events and trends, and help you better understand your customers, employees, products, vendors, and markets. Examples of this software include Tableau, PowerBI, and Alteryx.
- Excel Users can create and manipulate worksheets while preparing visualizations, creating descriptive statistics, and performing audit analysis and what-if scenarios.
- python is a programming language that reads structured and unstructured data and allows users to work with larger data sets. Users can take specific data and clean, merge, recode, and create programs for different analytical needs.
- Structured Query Language (SQL) A coding language used to access data in datasets and databases.
Stevens said accountants also need to be aware of cybersecurity and the risks of relying on technology. But whether you’re currently a CPA or improving your accounting and finance skills to become a CPA, technology will likely become an integral part of your journey.
Acquisition of technical skills as a certified public accountant
As a CPA, you can work in different organizations and have your own practice and clients. The technology available to you depends on your area of expertise, but having a background in technology will give you an edge over potential competition.
“As CPA firms rely more and more on technology and data analytics, they need more staff with these technology[and]analytics skills,” says Stephens.
But don’t worry. There are many ways to continue to improve your technical skills after becoming a CPA.
“Certified public accountants must complete a specified number of hours of Continuing Professional Education (CPE) from the recognized National Institute of Accountants (NASBA) in order to hold their license,” Stevens said. “Each state sets its own times and requirements.”
For example, New Hampshire requires 120 hours of CPE every three years, while California requires 80 hours every two years, according to FurtherEd’s interactive map. You can use this tool to determine your potential CPE needs.
Stephens says continuing education is the best way to improve technology skills.
“There are many NASBA-accredited organizations that offer courses on a variety of technologies,” she said. For example, the AICPA offers technical courses, as well as many other professional accounting associations such as:
- American Accounting Association (AAA)
- Association of Certified Fraud Examiners (ACFE)
- Institute of Management Accountants (IMA)
“There are also many online free services that offer training in various technologies,” says Stephens.
So, whether you want to become an accountant or you already have a CPA, there are ways to build valuable technical skills and stay up-to-date now and in the future.
Find out more about SNHU’s online accounting degree. Find out what courses to take, skills to learn and how to request information about the program.
Nicholas Patterson ’22 is a writer at Southern New Hampshire University. Connect with him on LinkedIn.
