The Accounting Disciplinary Task Force of the MaCuDE Project has produced a report on the current state of digital technologies in the accounting profession and the skills that new graduates need to succeed in this rapidly evolving field. The report is based on insights from Big Four accounting firms, professional organizations, regulators, and interviews with 32 industry professionals who hire accounting graduates.

The report highlights that the COVID-19 pandemic has accelerated the adoption of digital technologies in accounting that were previously thought to be years away from widespread use. Companies are increasingly automating routine tasks to allow their human resources to focus on higher-value activities. Key technologies driving this transformation include data analytics, cloud computing, blockchain, AI, robotics, and cybersecurity.

According to the report, data sharing across organizations is becoming more common, enabled by sophisticated software and security measures. This trend underscores the importance for accounting students to be comfortable with data analytics. Cloud computing is allowing companies to automate manual tasks and become more competitive. Blockchain, once seen as a technology of the future tied mainly to cryptocurrencies, is now being used by many companies to manage both tangible and digital assets.

Automation of back-office tasks is accelerating due to talent shortages and the need for accuracy and reliability. Cyber AI is becoming crucial as remote work raises data security concerns. Physical tech devices like robots and drones are also seeing increased adoption. The report identifies quantum technologies, exponential intelligence, and ambient computing as emerging areas to watch.

Industry surveys by Big Four firms like PwC and KPMG echo these findings, highlighting AI, IoT, robotic process automation, cloud, drones, eCommerce platforms, 5G, blockchain, digital payments, quantum computing and robotics as the most transformative technologies. The pandemic has magnified the need for businesses to be ready for radical technological changes.

Recognizing the seismic shifts in the profession, the American Institute of CPAs (AICPA) and National Association of State Boards of Accountancy (NASBA) are overhauling the CPA exam in 2024 to drive changes in accounting curricula. Their CPA Evolution Model Curriculum emphasizes technology, data analytics, and data acumen throughout, although it does not mandate specific technologies. Most firms surveyed said they would increase hiring of graduates taught this new curriculum.

The role of the accountant is being redefined by this technological revolution. In addition to mastering new digital tools, accountants need to expand their knowledge in areas like environmental, social and governance (ESG) reporting. AI is automating routine activities while creating opportunities for accountants to provide more strategic value. Accountants are poised to take center stage in helping organizations navigate challenges like supply chain disruptions, diversity, equity and inclusion, and climate change.

Interviews with industry professionals hiring accounting graduates yielded several key insights:

  1. Technology skills are now critical, a need heightened by the shift to remote work during the pandemic. Excel and database skills are ubiquitous, but the use of more advanced technologies varies by industry and client.
  2. Beyond specific tools, accountants need a digital mindset, critical thinking skills, and the ability to interpret and communicate data insights to drive business decisions. Agility to learn new technologies and awareness of data security risks are also crucial.
  3. While AI and advanced analytics are increasingly used, they primarily inform human decision-making rather than replacing it. Accountants must be able to leverage these tools to provide strategic insights and recommendations.
  4. New graduates often have stronger technical skills than experienced professionals, but they lack the ability to link data to business outcomes, communicate effectively, and solve unstructured problems. Industry wants graduates who can bridge technology and business through critical thinking.
  5. Firms provide extensive on-the-job training on their specific technology stack, but they believe universities must do more to infuse data analytics and hands-on technology projects throughout the curriculum to prepare work-ready graduates.
  6. Closer academia-industry partnerships, faculty training and internships, and real-world case studies can help close the skills gap. A technology minor or double major is also recommended.
  7. Looking ahead, accountants will need to master AI, machine learning, blockchain, cybersecurity, and robotic process automation. Strong data storytelling and visualization skills will be a key differentiator. Critical thinking, adaptability, and remote collaboration skills will also be vital.

In summary, the accounting profession is undergoing a major transformation driven by the rapid adoption of digital technologies. To thrive in this new era, accountants must complement their traditional competencies with strong data analytics, critical thinking, and communication skills. They need to develop a digital-first mindset and become adept at using technologies like AI, blockchain and RPA to drive efficiency and uncover actionable business insights.

Universities have a crucial role to play in equipping accounting students with these skills through a comprehensive overhaul of the curriculum. More hands-on exposure to data analytics, visualization and other emerging technologies is needed, along with projects that mimic real-world business challenges. Industry professionals recommend embedding these skills throughout the curriculum rather than just in standalone courses.

Closer collaboration between academia and industry, through faculty training, case study development, and student internships, can help ensure that the curriculum remains relevant and responsive to the fast-changing demands of the profession. Minors or double majors in technology disciplines are also valuable for accounting students.

As the report makes clear, the future of accounting is digital. Accountants who can combine domain expertise with data fluency, technology savvy and strong “soft” skills like critical thinking and communication will be in high demand. The mandate for accounting education is to nurture this new breed of professionals through a forward-looking, technology-infused curriculum designed in close partnership with industry.