5 Challenges Looming Over the Accounting Industry

The accounting industry has been a vital part of the economy for more than a century, but the past few years have brought forth a variety of new challenges for it. This is the result of changing laws and technologies that are evolving the way businesses function. On the bright side, these changes are also causing good accountants to be more important than ever before, which is opening up new opportunities for trained professionals that can rise to the occasion.

Resource: Top 10 Online Accounting Degree Programs

New Technology

Most modern records are made and maintained on computers, and the programs on which those computers rely are advancing rapidly. They can be a major asset to an accountant that is familiar with them, since they can save time and automate basic processes. On the other hand, modern accounting software can be complicated, and the learning process and provide challenges to some workers. Modern accountants can surmount this problem by familiarizing themselves with new programs before they become absolutely necessary, and by studying computers to get a basic familiarity with modern technology in general.

Changing Structure

Those new technologies are making many old business structures obsolete. The Internet has made it easier than ever to outsource jobs to other firms, while the price of maintaining cutting-edge software is encouraging smaller accounting firms in the industry to merge. An aging workforce is also causing some difficulties for many firms, since some of the people who ran successful firms for years are now reaching retirement. This is encouraging accountants to abandon the older partnership model that governed many firms in favor of a newer corporate structure. Everyone should expect some growing pains and a steep learning curve as they adjust to the new structure, but in the long run this is likely to make many firms more efficient.

Evolving Laws

Financial law is changing quickly. The general population is dissatisfied with current relationship between businesses and the government, which is leading to new regulations being released on a regular basis. Similar dissatisfaction with the tax system and controversies within the government are leading to changes to the tax code. Accountants need to take these changes into account, but they often happen at the last minute, so the industry has to react quickly to get work done on time. Of all of the challenges that accountants face, this one is the most difficult to overcome, since individuals can do very little to make the government work faster.

Increasing Globalization

New problems are also arising due the increasing number of interactions that most businesses have with foreign organizations. Accounting firms that deal with these businesses need to be familiar with the interactions between two different sets of financial law, which is one of the greatest technical challenges that an accountant can face. Modern technology can help with this problem by enabling quick research, but experience is the greatest tool at the average accountant’s disposal when facing this type of challenge.

Increasing Demand

These changes are leading to an increased demand for skilled accountants, which is both a blessing and a curse for the field. On one hand, it ensures that most accountants have an easy time finding good jobs. On the other hand, a shortage of workers can lead to extra work for the people who are available. This problem will likely disappear over time as more people enter the field, but it remains for the time being.

It’s clear that accountants can look forward to plenty of challenging situations and golden opportunities in the future. They will need to adapt and learn new skills to prosper in the modern economy, but their skills are in greater demand than ever before. As long as the accounting industry can overcome these challenges, it can expect to offer valuable services to its clients and steady employment to its employees for many years to come.