How to future-proof your accounting career from AI
With our reliance on artificial intelligence in accounting growing constantly, what are the soft skills accountants need to focus on to future-proof their careers?
There are core accounting skills, known as soft skills, that are required to be an accountant that cannot be automated or replaced by artificial intelligence.
In this article we dive into the crucial skills for accountants we need to poise the accounting field for long-term success against artificial intelligence tools.
What are soft skills, and why are they important?
As a 2019 Global Talent Trends report by Linkedin defined, "Soft skills are the essential interpersonal skills that make or break our ability to get things done."
Soft skills are foundational to various professions, becoming ever more vital as automation has become a cornerstone of the modern workplace. In their report, Linkedin says:
"The rise of automation and artificial intelligence means that hard skills alone are no longer enough to be successful."
Many academics are highlighting the importance of soft skills in the workplace. In his 2017 paper for the National Bureau of Economic Research (NBER), David J. Deming, a Harvard professor and co-editor of the Journal of Human Resources, says, "Machines are generally quite good — much better than humans — at performing routine, codifiable tasks according to a set of explicit rules. However, people are still much better at open-ended tasks that require flexibility, creativity, and judgment."
Soft skills for accountants that technological advancements, such as machine learning and artificial intelligence in accounting cannot replicate. Critical thinking and problem-solving are two examples of soft skills that will increase their value as routine tasks become more automated.
How do professionals feel about artificial intelligence in accounting?
As we learnt in the previous section, accounting AI tools are meant to support human beings in their jobs – not the other way around! This is why good accountants, overlaying their learnt soft skills, can use accounting automation and artificial intelligence to their advantage.
Consider the nuances accountants can bring to data, such as interpretation and analysis, when providing accounting services to their clients. Artificial intelligence in accounting also cannot give the data its structure, so data preparation is critical and sensitive to the context provided by human accountants. Data science demands accountants feed smart data to machines to support their activities for more incredible results.
There is a growing fear that artificial intelligence in accounting will eventually replace human accountants. In the wake of ChatGPT's rise to fame earlier this year, KPMG surveyed Australian sentiment around AI tools. Accountants Daily highlighted that the report findings showed almost 60 per cent of Australians distrust using AI tools at work.
The research from KPMG also highlighted that 71 per cent of Australians agreed with the following statements: "The impact of AI is unpredictable," "The long-term impact of AI on society is uncertain," and "There is a lot of uncertainty around AI."
Are we right to be distrusting of artificial intelligence in the accounting industry? Find out in our next section.
How can AI have a positive impact on accounting firms?
Traditionally, data-driven duties in accounting firms can be broken down into three specific categories, according to research by CPA Australia:
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Data acquisition and preparation: Evaluating data's reliability and relevance.
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Data processing and analysis: Assessing and aggregating data, ensuring transparency and data modelling.
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Interpretation and decision-making: Providing guidance and insights to support business decisions.
The good news is that artificial intelligence in accounting positively impacts these categories, making it easier for firms to manage and analyse their data.
Whether it's robotic process automation (RPA) through accounting practice management software, blockchain, data management and analytics software or any other AI-driven tool, these technologies simplify previously mundane tasks while allowing firms to get the most value from their data.
Far from being technologies that replace accountants, something that has been debated ad infinitum for decades, artificial intelligence in accounting frees accountants from handling time-consuming and repetitive jobs.
That means your best accountants can focus on more critical tasks, such as client-facing duties and functions that require applying soft accounting skills.
Look at our deep-dive on artificial intelligence's purpose in modern accounting firms in our blog: AI in Accounting.
Top accounting skills in the age of artificial intelligence
In an era where artificial intelligence and accounting automation are rapidly advancing, accountants are beginning to see the value of developing soft accounting skills to future-proof their careers.
In 2017, a UK-based recruiter, Robert Half Finance & Accounting, surveyed more than 2200 CFOs and found that 54% valued hard and soft skills equally when filling positions, and 10% gave more weight to soft skills.
Hard accounting skills, often called technical accounting skills, are "job-specific, relevant to each position and seniority level." Technical skills in accounting can include proficiency and understanding of accounting practice management software, the ability to prepare and report on financial statements, and data analysis.
Technical accounting skills are more straightforward for artificial intelligence and accounting automation software to replicate; however, soft skills have proven immovable.
Here are the top artificial intelligence accounting skills to help firms thrive:
Emotional intelligence
In 2020, the World Economic Forum's "The Future of Jobs" report showed us that emotional intelligence would be one of the 10 top skills to watch out for in future, and it may be one of the most vital accountant skills to learn as artificial intelligence evolves.
Emotional intelligence didn't come into the public conversation until 1995, when the book "Emotional Intelligence", written by Daniel Goleman, put it on the agenda for workplace competencies. Time magazine ran a cover story in the same year called "What's Your EQ?" stating that emotional intelligence may redefine what it means to be smart and successful.
Emotional intelligence (also known as "EQ" for "emotional quotient") is defined by Verywell Mind as "the ability to perceive, interpret, demonstrate, control, evaluate, and use emotions to communicate with and relate to others effectively and constructively."
Machine learning lacks human emotions and the ability to understand and empathise with accounting firm clients. On the other hand, accountants can understand the impact of their behaviour on other people. They can step outside themselves to watch how they behave and talk with their colleagues and clients.
Emotional intelligence enables you to connect, collaborate, and build effective relationships in your practice. Improving your emotional intelligence competencies in your accounting firm will help your work performance and hone the skills you will need to improve your skills in the long term against artificial intelligence in accounting.
Critical thinking and problem-solving
Being a critical thinker also means being a problem solver. Critical thinking skills are considered such an essential soft skill in accounting that Chartered Accountants Australia and New Zealand identified it in the top 10 attributes to get you noticed in the job market.
AI accounting software excels at processing vast amounts of data quickly. However, artificial intelligence in accounting cannot add value to that data, interpret trends with businesses, and understand how people and performance intersect.
Accounting firms increasingly seek accountants with problem-solving abilities rather than number crunchers as we become more dependent on AI software for accountants. Look to how you can improve your analytical skills, such as how you reason data, as this will help set you apart from accounting machine learning.
Creative thinking
According to LinkedIn behavioural data, creativity is a soft skill in accounting in the shortest supply and most demand.
Furthermore, a study by McKinsey predicts that as automation transforms the skills accounting and other professions need, by 2030, the demand for creativity will significantly rise.
Machine learning is proficient at repetitive tasks and following predefined patterns as part of accounting practice automation. However, artificial intelligence in accounting often needs more creativity and the ability to think outside the box.
Nurturing your creativity, embracing innovation, and generating original ideas will be crucial in accounting, as ingenuity and a human touch will always be required.
For a deeper look at creative thinking in accounting, check out our blog: Soft Skills for Accountants: Creative Thinking in the Workplace.
Leadership and collaboration
As AI tools, such as accounting practice management software, become more integrated into the workplace, the ability to lead and collaborate within accounting teams in your firm becomes increasingly essential.
Effective leadership in accounting firms may involve guiding and inspiring others, delegating tasks, and managing interpersonal dynamics.
Collaboration skills are considered one of the most in-demand soft skills in the workforce, according to Linkedin data.
Collaboration skills may include teamwork, negotiation, and conflict resolution. They will also be valuable on your resume for navigating complex projects driven by accounting automation software.
For more information on conflict resolution for accountants, check out our blog: Dealing with difficult clients for accounting practices.
Ethical and moral decision-making
Artificial intelligence has generated many recent debates around digital ethics, such as privacy, bias and fairness. This has resulted in the umbrella term "responsible AI."
The rise in applications of generative AI in 2023 paved the way for these conversations, and accounting practices that do not manage AI risk are much more likely to experience breaches.
Developing ethical reasoning skills and understanding the broader societal impact of AI will be essential, as when not used responsibly, artificial intelligence in accounting could pose many privacy and security failures.
This has a detrimental effect, harming many accountants and their clients and damaging the practice's overall reputation. Making morally sound decisions and navigating ethical dilemmas will differentiate humans from machines.
For more information on the ethical considerations in the wake of Generative AI in accounting, check out our blog: Amazing generative AI tools for accounting firms.
Communication skills
Communication is one of the basic accounting skills. Every day in accountancy involves interaction with clients, colleagues and stakeholders.
Communication skills help gather information, provide insights and present financial data, all using best-in-class accounting practice management software.
Clear and effective communication is critical for accounting firms and can include the following:
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Written communication
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Verbal communication
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Active listening, and
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Conveying complex concepts to clients concisely and understandably.
Humans excel at interpreting context, nuance, and non-verbal cues, which gives them an immediate advantage over AI technology.
So, what are successful accounting practices doing to ensure excellent communication skills? Find out in our blog: Communication skills for accountants.
Our client management software for accounting practices will elevate your soft skills, including your communication skills and the relationships you have developed with your accountancy clients.
How accountants can train up their soft skills
The landscape of artificial intelligence in the accounting world constantly evolves, and accounting jobs are changing rapidly. Being adaptable and open to learning new skills and technologies will enable you to stay ahead.
Adopting a growth mindset, being willing to upskill and reskill, and continuously seeking opportunities for Continuing Professional Development (CPD) will be essential for great accountants to level up their important skills.
CPD helps accountants develop and maintain their professional competency each year to safeguard their professional integrity and public interest. The minimum number of hours accountants must complete each year in CPD is 20, and the total hours required over three years is 120.
There are many different types of free CPD activities that accounting professionals can leverage each year to future-proof their accounting skill set knowledge against artificial intelligence. Check out our blog for more on this topic: the best free CPD resources for accountants.
In summary
Many accounting firms need help assessing top accounting skills, despite their growing value in the age of automation and artificial intelligence in accounting.
Suppose accounting firms want a robust hiring strategy to future-proof their practice in the age of artificial intelligence in accounting and automation. They must change how they identify and recruit accountants with applicable accounting soft skills.
To future-proof their careers, accountants must look to the right accounting skills and either upskill or reskill as we move into this new landscape of automation and artificial intelligence for accounting firms.
Working in tandem, human accountants equipped with in-demand accounting skills and complex AI-driven technologies, such as accounting practice management software, can amplify the art of accounting.
