The Evolution of Accounting Profession with Digitalization

Remember, not long, just 20 years ago the Grand Larousse and Encyclopedia Britannica?were always on the seat of honor in our libraries, because they were the internet of those times, and also our biggest source of information. Now, nobody even gives them a second glance. Shoemakers, tailors, blacksmiths, who were an essential part of our lives in the past, have already become a thing of the past. And that's just happened in the last 30-40 years! From the past to the present, the digital world has continuously evolved in terms of legislation, technology, tactics and user experience, and has never shown signs of slowing down anytime soon.

The 4th industrial revolution, artificial intelligence, the use of robots, autonomous vehicles and other developments triggered by digital technologies point to the transformation of economy and society. These developments are expected to change the way we do business, as well as the habits and needs of society. With digitalization, most professions are evolving or completely disappearing. While some professions will disappear completely, others will develop further and it is also likely that some professions, that we do not currently know, will emerge in the future.

The forty percent of Fortune 500 companies are expected to collapse due to mega trends such as digitalization by 2025. In the light of this perspective, the companies and professions need to reinvent themselves for the digital age. The accounting profession is one of the professions where this situation is felt most. ?Nowadays, for accountants, it is imperative to gain new skills in the area of information technology. Then, it is inevitable to ask the following questions “What will be the accounting profession in the future? What will replace our data collection and recording capabilities? What equipment will we need in the future? What kind of modeling do we need to adapt the accounting profession to digital transformation?”

Conceptual Framework of Accounting Engineering

With the impact of large data and the help of digital technology, the professional accountants have already turned into a type of data analysts who are spending less time with recording, classifying and summarizing, but more time to interpreting the records. In the near future, inventories, machines and other assets will be in contact with intelligent accounting systems. In the process of Industry 4.0, machines will not only produce products, but also will be able to communicate with the machinery of stocks and give information about what they should do. This situation gives us a new perspective on where the accounting profession is going.

?In the 21st century, the digital transformation in the accounting profession can not be resisted. Therefore, the accounting profession should be redesigned on the basis of engineering foundation and analytical thinking, and to integrate the traditional and changing structure into technological developments under the title of “Accounting Engineering”.

Accounting Engineering Theory: This course focuses on how accounting will be shaped on the basis of digitalisation. It analyzes change and focuses on redesign.

?Transformation from Accounting to Accounting Engineering

There are two most wondered questions by professional accountants in terms of digital transformation: Does the accounting profession really need a re-design for digital transformation? Can't the transformation be carried out with the current traditional methods? I think it needs a radical change to make the accounting profession more innovative. Digital transformation represents the break from the past. If we want to ensure the future success of the accounting profession, change is a must. Therefore, we must focus on the needs and wishes of digital transformation. What we need is redesign, the driving force behind transformation and evolution. If we are to implement a successful digital transformation strategy, adopting design thinking is the right method. Because it is a key that is used to solve design problems and to explore the opportunities of digital transformation.

Technology increases innovation rates in the accounting profession and creates new trends faster than ever before. For example; while it was enough for an enterprise to handle tax affairs, they now have more important roles for businesses. Therefore, to survive against technological developments, they need to have competencies to help them make data-based decisions. This transformation changes the competencies and duties of accountants and also makes it necessary to redefine their titles. Because the upcoming future accountants for businesses to place a strategic position that is too big to fit under the title of accountancy. The reference point is that advancing technology makes accountants more efficient.????

Digital transformation has the power to change all the processes of a business model to a great extent. Technology and new digital capabilities enable accountants to access data that was not previously possible, allowing them to perform financial tests at a speed that was not possible before. Therefore, digital transformation requires more than technological innovations for the accounting profession. The digital transformation, which radically changes all the building blocks of the accounting profession, carries the members of accounting professionals far beyond the title of "accountant" for the society and businesses.

As a result, professional accountants, rather than having a fear of technology, should catch the opportunity of this new world. The reshaping of the educational process of the accounting profession in particular has critical role to adapt the future. The trainings need to become richer with digital systems and focus on the skills currently learned through experience. In the digital world order, professional accountants will need to have a deep understanding of how digital systems work and how decisions are made.?On the other hand, it is obvious that the future professional accountants should develop their leadership skills. Therefore, they will need deeper technical skills than ever before. This is a completely new skill type, which means a different training. I hope that at this point the accounting engineering model will be successful and will bring all professional accountants to future accounting.??