Technology to drive innovation in firms of the future
Firms across the globe are grappling with the triple threat of technological disruption, shifting workforce dynamics, and mounting pressures on environmental, social, and governance (ESG) reporting. As Chartered Accountants, we are forced to adapt and innovate to remain relevant and competitive in a rapidly changing business landscape.
The remote work model will become more prominent
Following the outbreak of coronavirus (COVID-19) in December 2019, the world saw an increase in remote and hybrid work models. Despite the virus becoming less lethal, many organisations have not returned to on-site work, indicating that these models may be here to stay. In early research, working professionals stated that they are more productive when working remotely. According to the World Economic Forum (WEF), remote job opportunities will continue to grow, estimating digital jobs will grow by 25% globally to 90 million roles by 2030.
Remote working is becoming the new normal in many professions, including the accounting profession. Some companies already offer fully remote accounting services. Remote working has also created a rise of digital nomads. The South African government recently passed the digital nomad visa, allowing remote workers to live in South Africa for up to a year (qualifying applicants must earn at least R1 million annually). As the world becomes more digitally driven, more countries are expected to follow suit.
AI is here to stay, let us embrace it
Following the launch of ChatGPT by OpenAI in November 2022, firms face pressure to embrace and adopt AI technology. An International Monetary Fund (IMF) study found that almost 40 percent of global employment is exposed to Artificial Intelligence (AI). The biggest concern amongst the workforce is AI's ability to impact white-collar jobs.
While it is early to determine the extensive impact of AI in accounting, studies indicate an accountant's role is likely to evolve. Common repetitive tasks such as making ledger entries, balancing accounts, and reconciling errors are likely to fall to AI. However, accounting requires human judgement to provide oversight to prevent inaccuracies. AI should be seen as an enabler that can increase accountants' efficiency rather than a threat.
To mitigate its impact, it will be important that AI is governed. In March 2024, the European Parliament passed the EU Artificial Intelligence Act, aiming to establish a framework for trustworthy AI.
More complying firms on Environmental, Social and Governance (ESG) reporting
Accounting firms are now obliged by regulatory requirements, investor demand, and global awareness to conduct Environmental, Social and Governance (ESG) reporting. While financial reporting is crucial, reporting on sustainability initiatives looks set to become mandatory instead of voluntary. Key players like the ISSB, TCFD, and GRI are mandating ESG Disclosure. This shift shows that a company's success and responsibility go beyond financial numbers.
Accounting member bodies, such as SAICA, are playing a massive role in promoting and advocating for sustainability reporting, rolling it out in university curriculums.
Increased emphasis on lifelong learning
With the emergence of digital technology, the practice of ongoing lifelong learning becomes essential. For career development, lifelong learning is essential and likely to increase. Firms that prioritise lifelong learning and upskilling will be better positioned to address challenges, capitalise on opportunities, and deliver innovative solutions.
SAICA prioritises Continuous Professional Development (CPD) and supports its members. CAs continuously engage in professional development activities to enhance competencies and stay relevant. By adopting a mindset of lifelong learning, CAs can effectively navigate the evolving landscape.
The scale of Small and Medium-sized Enterprises (SMEs) to increase
Small and Medium-sized Enterprises (SMEs) are on the rise in Sub-Saharan Africa. In South Africa alone, they are estimated to contribute 40% towards the country's GDP. Despite challenges, SMEs are innovation hubs, constantly seeking new solutions. The firms of the future will be agile and adaptable. The rise of SMEs will continue to drive innovation and economic growth.
SAICA has seen an increasing number of members venturing into this space, establishing accounting firms or firms in other industries. SAICA's new corporate strategy for 2024-2028 is based on the changing economic landscape, summarised in 4 pillars: Member Centricity, Attractiveness and Transformation, Economic and Social Relevance, and A Winning Organisation. We must actively work at remaining relevant, attractive and responsible in a changing business landscape to make a substantial difference.