The future of accounting: How AI is redefining the role of accountants

"In the next decade, technology will disrupt the accounting profession more than it has in the past century."

It sounds dramatic, but it's true. The accounting world has already undergone significant changes, and with the rise of artificial intelligence (AI), even bigger shifts are coming.

Let's picture this: It's 2024, and Karim, a veteran accountant from Dhaka, Bangladesh, is at his desk. But instead of being buried in paperwork or spending hours on spreadsheets, he is using AI to generate financial reports, make predictions, and advise clients on strategic business decisions. AI is not just an add-on; it is central to his daily work. This marks the beginning of a new era in accounting - one where AI revolutionizes not just efficiency, but the entire role of the accountant.

The old days: Numbers, ledgers, and reams of paper

For hundreds of years, the profession was all about the basics, double-entry bookkeeping, where every transaction was carefully recorded in two places: one as a debit and one as a credit. It wasn't glamorous, but it worked. Every accountant's job was about making sure everything was balanced and that businesses kept accurate financial records.

The late 20th century brought the dawn of computers, and with them, accounting software. Tools like Excel and QuickBooks started to change the game, making it easier for accountants to track transactions and automate basic calculations. Then came the 2000s. Cloud accounting arrived, allowing accountants to access real-time data and collaborate on financials with colleagues from anywhere. It was a game-changer.

AI steps in: A whole new ballgame

AI is transforming accounting in ways traditional software never could. For Karim, AI is not just a tool, it's part of the team. Gone are the days of manual data entry and chasing receipts. With AI-powered systems like QuickBooks and Xero, tasks like reconciling accounts, matching invoices, and predicting cash flow are automated.

This frees Karim up to focus on big-picture strategy. Instead of spending hours on transactional tasks, he uses AI to spot trends, predict outcomes, and offer clients data-driven advice. Need to assess a new market or detect fraud? AI handles it in minutes. What once took days now takes hours - or even minutes. AI isn't just faster; it's more accurate, reducing human error and ensuring better results.

The role of accountants: From number crunchers to advisers

So, what is happening to accountants now? Are they out of a job? Not at all. In fact, the role of the accountant is actually getting more exciting.

Karim's job today is a lot different than it used to be. He is not just balancing books; he is working with AI to provide deep financial insights to his clients. Instead of simply reporting what happened in the past, Karim is looking ahead – using data to predict what will happen in the future. He is helping businesses plan for growth, avoid potential pitfalls, and make smarter financial decisions.

Take Bangladesh as an example. Small and medium-sized enterprises (SMEs) are a significant part of the economy here, but many still rely on traditional bookkeeping methods, often using paper ledgers. For example, access to AI-powered accounting tools in the textile industry can help them predict demand trends, assess supply chain risks, and even identify cost-saving opportunities that were previously hard to spot. Karim can use AI to help local manufacturers in Dhaka stay competitive in a global market by automating their accounting processes and helping them make data-backed decisions.

Think of it this way: AI handles the grunt work, while Karim does the thinking. He is using his expertise to interpret the insights AI provides, making sure they are not just numbers on a screen, but real-world strategies that drive business success.

The challenges: Tech doesn't solve everything

Of course, it's not all smooth sailing. The rise of AI comes with some challenges. For one, there are some serious ethical concerns. Data privacy is a big issue. With AI having access to so much financial information, there is a need for strict regulations and transparency. If not handled carefully, AI could perpetuate biases or even make decisions that are not in the best interest of the people it is meant to help.

For countries like Bangladesh, where many businesses still operate in a less-regulated financial environment, the introduction of AI can feel like a double-edged sword. While AI could enhance efficiency and accuracy, the challenge is ensuring that all businesses – big or small – have the infrastructure to safeguard sensitive data and that proper governance is in place to avoid exploitation.

Then there is the fear of job loss. Yes, automation can take over repetitive tasks, but it doesn't mean accountants will disappear. In fact, AI's rise is creating new opportunities. Now, accountants need to be skilled in new areas – data analytics, machine learning, and financial modelling. It's a shift in what accountants do, but it's also a chance to level up and become more valuable than ever before.

The road ahead: What's next for accountants?

So, where does this all lead? Looking ahead, the role of AI in accounting is only going to grow. By 2030, routine tasks like tax filings, audits, and even financial reporting will likely be fully automated. But don't worry, accountants will not be obsolete. They will be needed more than ever to help businesses make sense of the insights AI provides and to ensure that everything stays ethical and compliant. Small businesses, particularly those in the agribusiness and export sectors, will rely on accountants to interpret AI insights about market trends, government policies, and export regulations.

In fact, accountants will be more like strategic partners in the future. They won't just crunch numbers; they will interpret them, analyse trends, and use AI to forecast what is next. They will be the ones helping businesses navigate a fast-moving world, giving advice on everything from investment strategies to risk management. In a sense, AI will take care of the "what" and "how," while accountants focus on the "why" and "what's next."

And the best part? The future of accounting is not about replacing accountants - it is about empowering them. Karim's role is not going anywhere. It is just getting a whole lot more exciting.

Shah Md Mohin Uddin, FCA, ACA (England & Wales), is a Senior Partner at Hasan Mohin Chartered Accountants and an Adjunct Faculty, AIS Program, Jahangirnagar University