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Future Of Accounting Term Paper

¶ … Future of Accounting The business world is in a period of change, with accounting a major part of that business world. As one report says, "Accounting is the language of business. It is and always will be the analysis of how money is used by businesses, nonprofit organizations, governments and individuals" (Insight). As the business world changes, accounting must change to continue to meets the needs of businesses. This is one of the areas that will greatly influence the future of management accounting. To understand this issue further, the current and future trends in accounting will be investigated. This includes considering the changes in the work environment for accounting employees, trends in accounting roles and future opportunities for accountants, and future skills of accountants that will be in high demand. Considering these three areas will show where business accounting is headed and how best accounting professionals can prepare for these changes.

In the future, the work options for accountants is expected to change considerably, with accountants having much more flexibility in how they choose to work. One report on the future of accounting predicts that by 2010, work models will be diverse. This report states that,

Some models already allow considerable flextime and flex location, empowered by technology. Other models will feature expanded/reduced hours to accommodate family and work/life issues or personal preferences" (Insight).

The same report also states that advancement will be based on experience and achievements, rather than time. As the report says, "Many models will be similar to an independent contractor relationship with either an individual or a team" (Insight). This relationship is one where accountants will be treated more like partners than employees, with them expected to contribute significantly to the organization. While this...

As one report says, "Because they were knowledgeable about the tracking and control of cash flow in a business, accountants were a natural choice to develop systems consulting services" (Insight). This has led to an increase in the number of business advisory services, with accounting services a major part of these organizations. It is also reported that these business advisory services are increasingly focused on expanding their service to cover a wide range of areas. One report describes this trend and the impact on accounting staff saying,
Today, many accounting firms are offering ancillary services such as investment advisory services, fraud investigation, litigation support, valuation, benefit plan consulting/administration and human resources services to clients. These services have their roots in accounting; but the skill sets needed to provide competent client services go far beyond the training and experience of most accountants" (Insight).

The impact on the future of accounting is important in two ways. Firstly, there is the opportunity for accountants to be employed by these agencies. Secondly, there is also the opportunity for accountants to become independent consultants and provide these accounting and business services to organizations. Himanshu Palsule, general manager of a producer of accounting software is quoted describing the rise in consulting,

More and more CPAs are starting to get into consulting... They will want to be able to walk into a customer site with a total integrated solution and not only do your taxation for you, but start taking over other parts of your business from a consulting perspective" (Maness).

This…

Sources used in this document:
Works Cited

Gabbin, A.L. "The crisis in accounting education; the CPA's role in attracting the best and the brightest to the profession." Journal of Accountancy. April 2002. 7 Nov. 2002. http://www.aicpa.org/pubs/jofa/apr2002/gabbin.htm

Maness, D. "Visionaries: the future of accounting and finance software." BusinessFinanceMag. 2002. 7 Nov. 2002. http://www.bfmag.com/specialreports/Visionaries/

Ravine, S. "Accounting." The Ohio State University, Fisher College of Business. 7 Nov. 2002. http://fisher.osu.edu/fin/jobs/account.htm

The pace of change." Insight. February/March 2002. 7 Nov. 2002. http://www.insight-mag.com/insight/02/02/feat-3-pt-1-ThePaceOfChange.asp
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