21st Century accountants' Challenges
The ever more frequent incidents of exceptionally violent weather occurrences have been akin to the changes across the financial sector. Skills that may have been adequate a mere decade ago are increasingly inadequate today. Only those who accept the need for lifelong learning will remain relevant and successful.
Johan Schaar, referring to our ever-changing world, wrote: “The future is not some place where we are going, but one we are creating. The paths to it are not found, but made – and the activity of making them changes both the maker and the destination.” To this Eric Hoffer added: “In times of change learners inherit the earth, while the learned find themselves beautifully equipped to deal with a world that no longer exists.”
Whereas in the past, it was sufficient for accountants to be mere number crunchers or so-called ‘bean counters’, the current financial environment no longer affords them this luxury. This luxury has been eroded by the advances in technology and the age of accounting packages, resulting in the value of the professional accountant being not only the reporter of financial information, but the user of such information to provide guidance on the success and sustainability of businesses. Thus in today’s financial and business world, clients (especially owners of SMEs) increasingly expect their Professional Accountant (SA) to be their business advisor.
Technology has significantly impacted on the work performed by professional accountants and the manner in which the work is performed. Thus to remain relevant, there is a need to anticipate the kind and scope of work that they will be required to perform in the future. Consequently, it is imperative that professional accountancy organisations work together with educators to design innovative curricula and delivery methods that will prepare accountancy students for this increasingly dynamic and ever-changing financial services and business world.
It has been acknowledged that economic prosperity and growth of a country and nation is underpinned by a solid financial infrastructure coupled with a strong accountancy profession. After the financial crisis of 2008/9, the importance of the accountancy profession was brought to the fore due to its role as the reporters of financial performance and accountability, but also assuring financial information. There is a general consensus that the accountancy profession assists in achieving sustainable economic growth and development, and therefore in alleviating poverty.
Africa, specifically South Africa, cannot exclude itself from the developments in the rest of the world, as exemplified in the World Bank Report on the Observance of Standards and Codes (ROSC) for Auditing and Accounting. These country-specific reports cover areas such as data dissemination, monetary and financial policy transparency, banking supervision, securities market regulation, payment systems and deposit insurance. As a consequence of these reports, the World Bank has been asked to take the lead on corporate governance, accounting and auditing, as well as insolvency regimes and creditor rights. The challenge that Professional Accountant (SA) now face is to take the lead in developing an ethical accountancy profession in Africa, which plays its rightful role in promoting sustainable economic development, and to assist public sector institutions in facilitating such development.
The Professional Accountant (SA) of the 21st century faces the challenge of moving from a mere recorder of business transactions to adopting a value-adding profile by assisting clients to comply with financial regulations and to improve business performance and stability by virtue of an in-depth analysis of financial information and the overall business environment.
The accountancy profession acknowledges that business information is the most important resource of any organisation and that financial information can no longer be the primary source of measuring business success. This resulted in the introduction of (i) sustainability reports which focus on assessing the ability of the business to succeed and continue its existence in a competitive business and economic environment and (ii) integrated reports which focus on a holistic reporting approach that integrates financial and non-financial information about the operations and competitive advantage of the organisation.
Clearly a steep learning curve looms! As the financial world continues its uninterrupted march towards a very different future, those who choose to stay on the course of the past will sadly become increasingly irrelevant. The time is finally over when a tertiary qualification from yesteryear was sufficient. Lifelong learning is no longer a choice for the Professional Accountant (SA) who wish to remain relevant and prosper.
By: Shahied Daniels, Chief Executive, SAIPA