Resilience, adaptability, tools and strategies in an era defined by innovation and unpredictability were the key topics discussed during Keitumetse Lekaba’s talk at the 2023 Accounting iNdaba.
“The recent global pandemic is underscored the volatility of the environment in which we operate. And serves as a reminder that circumstances can shift dramatically and swiftly, necessitating a proactive approach in preparing for an uncertain future.
It is therefore important that we recognise the transformative shifts taking place in accounting and tax, while understanding the importance of business resilience and continuity,“ says Keitumetse Lekaba, The Business Doctor, MD, I am an Entrepreneur.
Our industry stands at the intersection of profound developments, including the rise of the Internet of Things, emerging technologies, business intelligence tools, and artificial intelligence, collectively redefining the very essence of our professional landscape. The evolving landscape of the accounting profession as a whole is increasingly influenced by artificial intelligence (AI), prompting considerations regarding its impact on professionals and the future trajectory of accountants. However, a notable gap exists – there is a lack of practical guidance on how to navigate and implement these changes. A paradigm shift is needed —a prescription characterised by resilience and adaptability, Lekaba says.
As tax and accounting professionals, it is not uncommon to be stereotyped as mere number crunchers. However, it is imperative to recognise that an accountant is not just a meticulous practitioner of numbers; but, in essence, an entrepreneur. Today’s challenges extend beyond the mastery of rules and regulations; they encompass the need to adapt to emerging technologies, and the need to discover novel approaches to meet the evolving expectations of a new generation of clients.
Practical Implications of Digital Transformation
The adoption of digital technologies, cloud accounting, and automation has fundamentally altered the landscape for accountants, reshaping the management of financial data by reducing manual tasks and enhancing overall efficiency and competitiveness.
In the context of this transformation, one noteworthy aspect is the proliferation of bank apps. These applications integrate accounting and financial management functionalities, fundamentally changing the accountant’s role. Many banks now provide businesses with the capability to compile management accounts, oversee payroll, and track expenses directly through their apps. While this streamlines financial management for businesses, it poses a potential challenge for external bookkeeping services, as organisations can now handle these aspects internally through banking apps.
Another facet of this change is evident in the South African Revenue Service’s automation of tax returns. While this automated process simplifies the experience for users, it simultaneously presents challenges for accountants reliant on income from assisting with tax returns, requiring them to adapt.
The role of AI in accounting is becoming even more crucial, as the capabilities of AI systems extend now to says Lekaba
“This growing reliance on AI has direct implications for accountants, necessitating their adaptation and integration of these tools into their services to remain competitive and relevant.”
Simultaneously, the adoption of digital technologies, cloud accounting, and automation tools has revolutionised how accountants manage financial data. This transformation not only enhances the speed and accuracy of financial processes, but also frees up valuable time to redirect focus toward value-added tasks, such as strategic financial analysis. To thrive in this evolving landscape, accountants must wholeheartedly embrace digital tools, continually upskill themselves in technology, and concentrate on delivering high-value services that leverage their expertise in financial analysis and strategic planning Lekaba adds.
A crucial quality that should form the core of your professional identity is resilience. It entails the capacity to embrace digital transformation, confront overwhelming regulations, and remain agile amid economic shifts.
To cultivate resilience, a commitment to continuous learning is imperative. The accountant of the future is technologically proficient, well-versed in cuttingedge technologies such as AI, machine learning, and advanced analytics. These tools facilitate the automation of routine tasks, enable the analysis of vast datasets, and extract valuable insights to inform decision-making processes for clients.
“To avoid overwhelming expenditures, consider distributing these changerelated costs across various periods, allowing for a phased-in approach.”
Accountants of the future need to also be cybersecurity champions. In the face of escalating cyber threats, they are well-versed in cybersecurity best practices, proactively implementing measures to safeguard sensitive financial data and ensure the security of client information.
Additionally, they advocate for environmental and social responsibility, and play a vital role in assisting businesses in measuring and reporting on their environmental and social impacts, aligning with global Environmental, Social, and Governance (ESG) goals.
Success in today’s technologically advanced landscape is not solely about numbers; it’s about people. Understanding the importance of building robust client relationships, they actively engage and prioritise interpersonal connections and craft customised strategies that align with the specific goals and aspirations of each client.
Additionally, they advocate for environmental and social responsibility, and play a vital role in assisting businesses in measuring and reporting on their environmental and social impacts, aligning with global Environmental, Social, and Governance (ESG) goals.
Success in today’s technologically advanced landscape is not solely about numbers; it’s about people. Understanding the importance of building robust client relationships, they actively engage and prioritise interpersonal connections and craft customised strategies that align with the specific goals and aspirations of each client.
“In a world increasingly dominated by automation, the human touch is more crucial than ever.”
Operating as proactive collaborators with an entrepreneurial spirit, they understand that the challenges and opportunities faced by their clients extend far beyond financial matters alone. Consequently, they seek partnerships with other professionals who contribute diverse expertise, ensuring clients receive the most informed, strategic, and integrated guidance possible.
While traditional accountants may have primarily focused on local or national regulations, the resilient accountant of the future recognises clients are not confined to local entities but are dynamic players in the global market. This understanding becomes a pivotal asset, acknowledging the complexities and opportunities presented by a globalised business landscape saya Lekaba.
Ethical behaviour and professional values are key, as is prioritising integrity, transparency, and accountability. Resilience and the ability to build businesses are keystones to achieving success in this ever-changing world, and the future belongs to those who seamlessly combine financial expertise with adaptability and resilience.
Practical Strategies for Resilience
Practical strategies for resilience encompass continuous learning and skills development, diversification of services, client relationship building, and robust cybersecurity, as well as data protection. Crisis and contingency planning are also critical elements in ensuring this resilience. Lekaba outlines the following strategies with regards to this:
- Continuous learning and skills development – Strengthen resilience through diversification of services, expanding into advisory consulting or niche specialties. This strategic move mitigates dependence on single revenue streams and enhances the ability to address evolving customer needs effectively.
- Strengthen resilience through diversification of services, expanding into advisory consulting or niche specialties. This strategic move mitigates dependence on single revenue streams and enhances the ability to address evolving customer needs effectively.
- Client relationship building. Accountants should proactively engage with clients, understanding their unique needs, and position themselves as trusted advisors. Cultivating strong client relationships fosters loyalty, generates referrals, and ensures a consistent flow of business.
- Strategic planning is integral to resilience. Developing comprehensive business continuity planning is imperative, outlining strategies to maintain operations during unexpected disruptions or crises.
- Effectively market your expertise by showcasing unique skills through online platforms and offline marketing efforts to attract new clients. Establishing a robust online presence, including a professional website and engagement on social media platforms, is essential.
- Regular evaluations are essential for adapting to market dynamics and sustaining a competitive edge. Conduct economic analysis to monitor both local and global economic conditions, providing clients with insights into potential financial challenges and opportunities. Staying informed about market trends is critical for offering strategic guidance to clients.
- Consider mentorship and succession planning by mentoring junior professionals and establishing a succession plan to secure the future of your business, recognizing the entrepreneurial nature of our roles.
Conclusion
The role of the accountant has undergone a significant transformation, evolving from the traditional model to an advisory function, with an accountant reclaiming a significantly trusted position with clients. In the ever-unpredictable world of business, resilience stands as the best prescription for success. By embodying resilience in our professional approach and service offerings, our resilience contributes to assuring our clients’ resilience, and continuity in their – and our own – business operations Lekaba concludes.