The financial services industry makes up around 20 per cent of Malta’s GDP, including hundreds of jobs in the accountancy profession. With the sector being so important to the economy, it is essential to be aware of how it might develop in future. Many predict that the accounting profession, and indeed the world of work as a whole, is going to change over the coming years.

Innovations such as automation and artificial intelligence are being designed, and in some cases have already started to come into everyday use. These technologies will mean a huge change for accountants, but although some may perceive this change as a threat, I believe it is instead an opportunity for the profession.

One area where technology will have a big impact is with simpler tasks such as entering data and creating documents; these tasks are beginning to be taken over and done by automated software. Having less human input needed to carry out these tasks could be perceived as a threat to the jobs of the accountants who previously would have taken responsibility for working on them.

However, when implemented correctly, automation should actually help make their jobs easier by increasing efficiency, and leave accounting professionals with more free time to focus on higher level tasks such as building client relationships and advising clients. Automation should also help reduce mistakes by minimising human error. All in all, it seems unlikely that in the future, professionals will need to sit down and look through paperwork, especially standardised documents such as invoices, because automation will be able to analyse them in a much shorter period of time than a human ever could.

The changes accountancy will see in the next few years could hurt anyone who is unprepared

There will be also be a growth in the use of artificial intelligence (AI). In finance, this could be used to look at past behaviour of clients, to gain insights and analyse their future needs, enabling accountants to use these insights to give more specialised advice. AI can also be used to create computer programmes that customers can connect with to do things such as ask questions about their accounts.

Cloud computing is another innovation that has already started to filter through to accounting professionals with software such as Xero. At a conference four years ago, when AAT asked our members who are accounting professionals how many of them had heard of cloud computing there was perhaps only five people with their hands up.

When asked again last year, 65 per cent of the audience said they are already using it; this demonstrates that this is a change which is already happening. Cloud computing changes the way accountants store data, gather information, and work with clients and each other. With it, clients can upload files, and accountants can work on their account from anywhere in the world. Accountants can also look at their clients’ accounts at any time, enabling them to provide advice at any time of the year, rather than just towards the end of the tax year.

The changes accountancy will see in the next few years could hurt anyone who is unprepared. Well-trained accountants are needed, who have a broad knowledge of different systems, and it is essential that they have the right skills to adapt. Skills that will definitely be important will be softer skills such as communication skills and presentation skills, which will help when advising and building relationships with clients. Computing skills will also be necessary to help learn new technologies. At AAT we ensure that our accounting qualifications incorporate all the skills professionals will need to meet the coming changes.

The future should be an exciting one, with the increasing use of technology freeing professionals to concentrate on other more interesting and important tasks, such as giving more strategic business advice and helping businesses grow and succeed. If accountants ensure they are learning the right skills, the profession looks set to remain strong and a large contributor to the country’s economy; even as these new technologies become more widespread.

Justin Kyriakou is International Development Manager at AAT (Association of Accounting Technicians), a world-leading qualification and professional body for technical accountants and bookkeepers. Its accounting qualifications are offered through the Malta College of Arts, Science and Technology (Mcast).