The future of the

accountancy
profession:
5 key trends
 Contents

Introduction................................................. 3

Big data........................................................ 4

Cloud computing......................................... 5

Globalisation................................................ 6

Regulations.................................................. 8

Public expectation....................................... 9

Conclusion................................................... 10

Sources........................................................ 11
Whilst the accountancy profession is not famed Recent talk at the World Congress of Accountants
for being future facing, in fact it has been very centred around the need for a new vision within
active as it looks to keep up with the pace of accountancy, with professionals recognising
change in today’s highly globalised world. the transformative nature of technology in the
21st century.

The business world is changing and accountants

are set for a period of significant evolution too.
Indeed, 57 per cent of accountants globally think
developments in technology will have a significant
impact on the finance function, with 18 per cent
expecting this transformation to be total.

“ 57% of accountants
globally think developments in
technology will have a significant
impact on the finance function.
”

3
 Big Data

Effectively combining finance, technology and information will be key to succeeding in the
accountancy world over the next five to ten years. But this transitional time should not be viewed
with trepidation, as instead it can be an opportunity for change. Firms and staff that get a handle
on big data and the intelligent systems that come with it have the chance to better serve clients.

Big data’s growing popularity is undeniable, as the Where accountants can make their mark is with
vast amount of data being collected and stored is distilling data - that is turning information into
reshaping business priorities. Companies are now actionable insights. As companies look to develop
able to create data-driven goals and measure them products and services based around data,
accurately through analytics, while many firms are accountants will become ever more important.
listing data as an asset. And the market for big data Accountants and CFOs will also need to work
analytics is only going to grow, with IDC forecasting closely with CIOs and IT staff to coordinate
it to reach $32.4 billion (£20.6 billion) by 2017. multidisciplinary teams for in-depth analysis. In
short, big data provides the perfect platform for
accountants looking to develop an increasingly
strategic relationship with their clients.

4
 Cloud computing
Cloud-based accounting systems raise the prospect of an agile and competitive service. The
increasing reach of the internet means cloud computing is edging closer to ubiquity. Seven in ten
accountants in Australia are already using the technology, while 76.3 per cent are planning further
investment in cloud-based services. Organisations of all sizes are recognising its benefits, as
increased adoption allows them to reduce their technology infrastructures and move away from
expensive hardware storage solutions.

The internet is becoming a central part of

enterprise structure, as they are offering
remote access to devices, applications and

“
databases through cloud computing services.

76.3%
This flexibility is also allowing accountancy firms
to think more strategically about how they are
organised to see if they can use technology to
better service customers and stakeholders.

Best of all, the cloud makes accountancy

are planning
software scalable, cost-effective and easy to
use - a potent combination for a profession
further
that prides itself on attention to detail.
investment in

”
cloud-based
service.

5
 Globalisation

More and more firms are embracing a truly global operating model as they lay the foundations for
long-term success across borders. Expanding overseas is a logical step for businesses and so
accountants should be advising every step of the way.

Operating a multi-location and multicultural Global management accountancy ensures that

workforce is a big challenge that requires all communication is insightful and influential,
global management principles. Considering all information is relevant, that accountability is
91 per cent of senior executives are looking enshrined in the process and that an organisation’s
to make better use of financial information for strategy and its business model are connected.
organisational decision making, it’s clear the key
role the finance function will continue to play. By bringing structure to complex situations and
prioritising long-term success over short-term
gains, the accountancy profession can also
make sure that their clients fulfil regulatory and
reporting obligations in different countries.

6
Among the other advice they can offer is:

The level of foreign direct investment into a country, as this is typically a robust
indicator of the levels of growth.

The broader political and social climate, as this will have a role in future prosperity.

A complete view of tax, the headline corporate tax rate can be deceptive unless
other taxes such as state-based, withholding and sales tax (VAT) are factored in.

What business incentives are on offer, treaties dealing with mutual agreement,
transfer pricing, permanent establishment and workforce issues should also
be investigated.

Local expertise, creating a local accounting, tax, legal and banking support network
can ease initial trading problems.

The legal system of the new market, with particular reference to M&A legislation,
copyright laws and employment law.

“ By establishing a broad knowledge

base on international issues,
accountants can play a central role
in companies’ globalisation plans.
”
7
 Regulations
Regulatory reform has the potential to either fragment or unite the industry. While IFRS has
successfully brought over 100 countries in line with an international reporting standard, other
changes are creating the conditions for divergent regulatory environments. Some recent major
regulations include:

EU audit reform Indian

This has introduced the requirement for the
mandatory rotation of auditors, but member states
Companies Act
have been given flexibility around introducing Introduced in 2013, this landmark legislation
shorter tendering and rotation periods, and lowering has far-reaching consequences for companies
the cap on fees earned for non-audit services to incorporated in the country. The act seeks to update
audit clients. Indeed, IFAC chief executive officer corporate governance to keep pace with India’s
Fayez Choudbury has warned that the “failure to growing economy and improve compliance.
decide a consistent approach to audit regulation
within Europe does not auger well for the chances
of agreement among the global community”.

Dutch Audit
Profession Act
This imposes an eight-year audit firm rotation period
and restricts non-audit services. It is more restrictive
than the EU’s reforms as it seeks to boost audit
quality and competition in the industry. However,
it has caused some concern among mid-tier firms
who are worried about what effect the wave of
tendering will have on resourcing and staffing levels.

8
 Public expectation
The economic crisis and subsequent banking scandals have eroded the trust between citizens
and the finance industry, leading to increased calls for transparency. Capital markets, global
financial stability and long-term sustainability are all under threat if the lack of transparency and
accountability is not addressed.

If the last few years have exposed anything,

it’s that strong financial reporting and financial
management arrangements are not evident in
a lot of countries around the globe. Therefore,
governments need to bring forward legislation
to protect and educate their citizens.

But there needs to be an understanding of the

importance of financial reporting in both the public
and private sector, as organisations have to guard
against the delivery of too much information.
Doing this could lead to claims of obfuscation,
meaning finding the right balance is essential.

“ There needs to be an understanding

of the importance of financial
reporting in both the public and
private sector, as organisations

”
have to guard against the delivery
of too much information.

9
 Conclusion
The accountancy sector is undoubtedly set Our members firms are ideally placed to effect
for a period of change and Praxity firms are change. For example, we have key personnel
well placed to be a leader in the next stage on bodies such as the FEE, AICPA, ICAEW and
of innovation. But we will not adopt bleeding EGIAN that campaign for better regulation and are
edge technology, and nor will we jeopardise the consulted by key regulators. We also keep our finger
service we offer to clients and the public. to the pulse by submitting papers, responses and
submissions to regulators and other appropriate
Our alliance has been specifically designed to bodies on key public interest topics. For example, a
offer both a seamless global model, while also number of Praxity firms recently made a well-received
maintaining a truly local understanding and submission to the OECD on the subject of BEPS.
presence to deal with clients’ holistic business
needs. In short, we offer the best of both worlds. We are big advocates of greater transparency in our
sector and our member firms are at the forefront of
We are seen as more than just trusted advisers, as we implementing a new level of standards in this very
can offer a value-added strategic service that allows area. As we are unashamedly selective in the firms
us to be true partners in our clients’ development. we welcome into our alliance, we’re confident of
the exacting high standards clients will receive.

“ Our alliance has been specifically

designed to offer both a seamless
global model, while also maintaining
a truly local understanding and

”
presence to deal with clients’
holistic business needs.

10
 Sources

http://www.
accountantsdaily.
com.au/breaking-
news/7792-seven-in-
10-use-cloud-based-
accounting-report

http://www.nexiats.
http://www.accaglobal.
com.sg/index.
com/gb/en/discover/
php?page=the-
news/2014/11/
impact-of-big-data-on-
wcoa-ima.html
accountancy-profession

https://www.
accountancylive.com/
big-data-adapt-or-die

http://www.ey.com/
Publication/vwLUAssets/
http://www.accaglobal. EY-mandatory-audit-firm-
com/content/dam/acca/ rotation-lessons-from-
global/PDF-technical/ the-netherlands/$FILE/
futures/pol-af-doc.pdf EY-mandatory-audit-firm-
rotation-lessons-from-
http://www.accaglobal.
the-netherlands.pdf
com/bigdata http://www.
aicpa.org/INTERESTAREAS/
INFORMATION
TECHNOLOGY/
RESOURCES/
CLOUDCOMPUTING/
Pages/default.aspx

http://www.kpmg.com/ http://www.idc.com/
in/en/pages/companies- prodserv/FourPillars/
act-2013.aspx bigData/index.jsp
http://www.
theaccountant-online.
com/blog/guest-
blog-accountability-
now---we-must-
enhance-government-
accountability-and-
transparency

11
Praxity is a global alliance of independant firms. Praxity is organised as an international
non-profit entity under Belgium law (a so-called IVZW or AISBL), with its registered
office in Gent (Belgium), Bellevue 5/ b 1001. Praxity does not practice the profession
of public accountancy or provide audit, tax, consulting or other professional services
of any type to third parties. The alliance does not constitute a joint venture, partnership
or network between participating firms. The firms that participate in the alliance are
independant separate legal entities, and Praxity does not guarantee the services or
the quality of services provided by participating firms. Praxity does not deliver services
in its own name or at all. Services are delivered by the memeber firms. Praxity and its
member firms are not agents of, and do not obligate, one another and are not liable for
one another’s acts or omissions.