Have You Met Your Robot Accountant Yet?

Last week we discussed the fact that robots were taking over our work and even knowledge workers such as lawyers now also find themselves at the edge of automation. Already a year ago we discussed this trend in “Why Accountants Are An Endangered Species” and really not much has changed. According to a survey by PWC Accounting topped the list of professions at risk of automation with 97.5% probability. I repeat 97.5% probability! And it’s already happening. Companies have reduced the number of full-time employees per $1 billion of revenue with 40% from 2004 to 2014. Processes are becoming automated yet still people are employed in Finance and even jobs like AP clerk (420 listings on LinkedIn) and AR clerk (405 listings on LinkedIn) haven’t disappeared completely yet. 

When it is rules based it can be automated 

However, there are no reasons to believe that the current trend will stop and further automation will cease. The logic is quite simple as much of accounting is rules based hence it’s simple to program software with rules covering 95-99% of all transactions. When the input is then also received automatically via a scan from a vendor or what to bill the client directly from the operational system there’s really no argument left as to why human intervention is needed. 

Dealing with the tough message 

It’s a tough message though and one that’s hard people to accept. I received quite a few dismissive comments to my post last year (more can be found here). Yet it’s a normal part of the change curve that people go through when they must face the music of reality.

Finance management in most companies have long committed to this change but down the ranks, there’s still a lot of anger while only a few are still caught in denial. The real question is what to do when many accountants hit resignation. Will they accept and commit to a new reality where they’ll have to learn new skills such as analytics and communication or will they get in the back of the line of all the industrial workers laid off as a result of the financial crisis? 

The future of work for accountants 

This discussion is much broader than finance and accounting, of course. Here we’re talking about the future of work but I will leave that part for others to have a say on. All I know is if you’re an accountant of the old school you need to find something more value adding to contribute with than pure accounting. You can specialize within technical accountant, tax and so on or become a generalist who as a consultant can advise the business on how to optimize the bottom-line whether through more revenue or cost savings. At least we’re still somewhat far removed from robots taking over that part! 

I’ve seen how automation can boost productivity and fuel growth without adding additional staff, how cloud software can make the life easier for everyone in the company exposed to financial transactions and how offshoring leave people in the hundreds without a job. Robotics and in this case software will only continue to affect the future of accounting so what’s your action plan? How will you ensure that you’re still employed 5 or 10 years from now? There’s really no time to waste and if you’re serious about this you should join my Finance Business Partner Forum where we will continue to discuss this topic. As always please comment, share or like to spread the message. I make sure to respond to every one of you. 

You can find more posts about finance transformation below. 

Introducing The Finance Transformation Nine Box

The Skills Of A Finance Business Partner

What Finance Business Partnering Really Is

You’re A Finance Business Partner, Now What?

Case Study: Becoming A Finance Business Partner

Why We Need Business Partnering Transformation

How To Define Finance Business Partnering 2.0?

Anders Liu-Lindberg is the Senior Finance Business Partner for Maersk Line North Europe and is working with the transformation of Finance and business on a daily basis. Anders has participated in several transformation processes amongst others helping Maersk Drilling to go Beyond Budgeting and transformed a finance team from Bean-counters to Business Partners. He would love the chance to collaborate with you on your own transformation processes to help you stay out of disruption. If you are looking for more advice on how to get the most of LinkedIn Anders also has a few tips to share as well as if you want help in your job search. Don’t be shy! Let’s get in touch and start helping each other.