REBOOTING OF ACCOUNTING SKILLS

TO STAY COMPETITIVE IN DIGITAL ERA

Subject Name: FUNDAMENTALS OF ACCOUNTING

Academic Year: 2022-

2023

Semester: II

Submitted by

SEJAL RAGHUWANSHI

UGB 22-52

Submitted to

Prof. Purnima Singh

Assistant Professor of Management

MAHARASHTRA NATIONAL LAW

UNIVERSITY, NAGPUR

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 Table of Contents
Sr. No. Particulars Page
No.
1 Introduction 3

2 Research Design 3

3 Literature review 4

4 Accounting skills one need 5

to reboot
5 Benefits of rebooting 6
accounting skills
6 Long term impact of not 7
rebooting accounting skills
7 Ways to reboot accounting 9
skills in digital era
8 Challenges faced by
accountants while rebooting
thier accounting skills
10 Conclusion 10

Suggestions 11

11 Bibliography 12

2
INTRODUCTION

The accounting profession has undergone significant changes in recent years due to the rapid
advancement of technology. As a result, accounting professionals are required to reboot their
skills to remain competitive in the digital era. The need to reboot accounting skills has become
imperative, as technological tools and software, such as cloud computing, artificial intelligence,
and data analytics, have transformed the accounting landscape. The adoption of these new
technologies has changed the way accounting professionals operate, making it essential for
them to update their skills to stay competitive.
The transformation of the accounting profession has led to a paradigm shift in the role of
accounting professionals. Accounting professionals are now expected to have expertise in data
analysis, financial modeling, and communication skills, which are essential in the digital era. As
noted by Ahmed and Nicholls (2021), accounting professionals need to acquire new skills and
competencies to remain relevant in the digital era.

The importance of acquiring new skills in the accounting profession cannot be overstated, as
organizations require accounting professionals to provide strategic advice that goes beyond
traditional accounting roles. According to a report by the Association of Chartered Certified
Accountants (ACCA, 2019), accounting professionals need to possess skills in critical thinking,
decision-making, and communication to provide value to organizations in the digital era.1 The
report further notes that accounting professionals need to develop skills in data analytics and
visualization to remain competitive.

RESEARCH DESIGN
Research Aims and Objectives
● To analyze the benefits for accounting professionals towards rebooting their skills to stay
competitive in the digital era.
● To identify the most important accounting skills an accountant need to develop in the
digital era
● To determine the most effective ways for accounting professionals to learn in order to
1 Association of Chartered Certified Accountants. (2019) “ Professional Accountants - The Future: Skills. London:
ACCA”

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 stay competitive in the digital era.
● To explore the challenges faced by accounting professionals when rebooting their skills
in the digital era, and to suggest strategies to address these challenges.
● To analyze the long-term impacts of not rebooting accounting skills for accounting
professionals and their organizations in the digital era.
● To propose recommendations for future practice.
Research Methodology
This research will use a qualitative approach to explore the ways in which accounting
professionals can reboot their skills to stay competitive in the digital era.This research will be
conducted using a descriptive research design, which involves describing and analyzing the
current practices and attitudes of accounting professionals towards rebooting their skills to stay
competitive in the digital era.
Research Questions
● How can accounting professionals reboot their skills to stay competitive in the digital
era?
● What are the most effective strategies for accounting professionals to reboot their skills
and stay competitive in the digital era?
● What are the current practices and attitudes of accounting professionals towards
rebooting their skills to stay competitive in the digital era?
● What are the challenges faced by accounting professionals when rebooting their skills in
the digital era, and how can these challenges be addressed?

LITERATURE REVIEW
Technology's Impact on Accounting: Technology has significantly impacted accounting, and
accounting professionals must update their skills to adapt to these changes. According to a
study by Deloitte (2019), technologies like cloud computing, automation, and artificial
intelligence are transforming accounting processes, and professionals must acquire new skills
to leverage these technologies.
Changing Accounting Roles: With the advent of technology, the traditional roles of
accounting professionals are changing. According to a study by the Association of Chartered
Certified Accountants (ACCA) (2018), accounting professionals need to be proficient in areas

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like data analytics, cybersecurity, and risk management to stay relevant in the digital era.
Importance of Continuous Learning: Continuous learning is crucial for accounting
professionals to stay competitive in the digital era. According to a study by the Institute of
Management Accountants (IMA) (2019), accounting professionals need to develop a growth
mindset and be willing to learn new skills regularly.
Collaborative Learning: Collaborative learning is an effective way for accounting
professionals to reboot their skills. According to a study by the American Accounting
Association (2018), collaborative learning helps professionals learn from each other and adapt
to the changing landscape of accounting.
Soft Skills: Soft skills like communication, critical thinking, and problem-solving are essential
for accounting professionals in the digital era. According to a study by the International
Federation of Accountants (IFAC) (2018), accounting professionals must have a strong set of
soft skills to succeed in their roles.
The Role of Professional Development: Professional development is critical for accounting
professionals to update their skills and stay competitive. According to a study by the American
Institute of Certified Public Accountants (AICPA) (2018), professional development programs
can help accounting professionals develop new skills and adapt to the changing landscape of
accounting.
Accounting professionals must reboot their skills to stay competitive in the digital era. This
literature review identified several key themes, including the impact of technology on
accounting, changing accounting roles, the importance of continuous learning, collaborative
learning, soft skills, and the role of professional development. By acquiring new skills and
adapting to the changing landscape of accounting, professionals can stay competitive and
succeed in their roles.

ACCOUNTING SKILLS ONE NEED TO REBOOT

Rebooting accounting skills is crucial to staying competitive in the digital era. Here are some of
the skills that accounting professionals should focus on:

● Data Analytics: With the increasing amount of data available, accounting professionals
need to be skilled in data analytics to extract insights and trends from financial data.

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 This can help in decision-making and identifying opportunities for growth.
● Cloud-Based Accounting: Cloud-based accounting systems are becoming increasingly
popular due to their flexibility, accessibility, and cost-effectiveness. Accounting
professionals should have knowledge of cloud-based accounting software to manage
accounting processes efficiently.
● Cybersecurity: As accounting processes move online, cybersecurity is becoming more
important than ever. Accounting professionals need to be aware of cybersecurity threats
and be equipped with knowledge of how to protect sensitive financial data.
● Soft Skills: Soft skills such as communication, collaboration, and critical thinking are
essential to succeed in the digital era. Accounting professionals should be able to work
in teams, communicate effectively, and solve problems efficiently.
● Automation: With the emergence of Robotic Process Automation (RPA), mundane and
repetitive tasks can be automated, freeing up accounting professionals' time to focus on
more complex and value-added activities. Therefore, they need to understand how
automation can benefit their work processes.2
● Reporting and management: Accounting operations are rapidly being automated
through robotic process automation (RPA), thus management accountants will need to be
able to assess the efficacy and efficiency of those processes and offer suggestions for
improving them. Additionally, in order to preserve assets, ensure data security, and apply
complex pricing procedures.3
● Applied analytics and technology: Management accountants will require data extraction
tool skills as Big Data develops in order to mine both structured and unstructured data.
They must be able to use data analysis technologies for data collection, management, and
analysis as well as for data visualization and storytelling.4
● Effective Communication: It's the Age of Information, as is frequently repeated.
However, if the information is not disseminated efficiently, it is just noise. The
outstanding accountant of the future will not only have analytical skills but also the
communication skills to effectively share her ideas with others. The capacity to analyze

2 Deloitte. (2019) “Future of finance The CFO’s agenda”

3 Tysiac, K. (2019, February 4) “How to stay relevant in the age of automation”, Journal of Accountancy.
4 Lin, W. T., & Gao, Y. (2019) “The Challenges of Accounting Education in the Digital Era: An Empirical Study of
Accounting Graduates' Perceptions”, Journal of Accounting Education, 47, 21-35.

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 critically and present those ideas in persuasive texts is a skill that accountants must start
developing. Having the ability to communicate important financial information to
executive teams and stakeholders will require them to have great oral communication
skills.

BENEFITS OF REBOOTING ACCOUNTING SKILLS

Rebooting accounting skills in the digital era can bring numerous benefits to accounting
professionals. Here are some of the advantages:

● Increased Efficiency: Adopting digital technologies and processes can streamline

accounting operations and reduce manual efforts, allowing professionals to focus on
value-added activities. This can lead to increased efficiency and productivity.
● Improved Accuracy: Digital technologies can reduce the risk of human error,
particularly in data entry and calculation tasks. This can improve the accuracy of
financial statements and other reports, which is crucial in decision-making.5
● Enhanced Client Experience: Digital technologies can improve the client experience
by providing real-time access to financial data and insights. This can help accounting
professionals provide more personalized and value-added services to clients.
● Better Decision-Making: Digital technologies can provide accounting professionals
with access to real-time financial data and insights, enabling them to make better-
informed decisions and recommendations.
● Increased Competitiveness: Rebooting accounting skills can help professionals stay
competitive in a rapidly changing environment. By adopting digital technologies and
processes, they can offer more innovative and efficient services, attracting new clients
and retaining existing ones.

LONG TERM IMPACT OF NOT REBOOTING ACCOUNTING SKILLS

The failure to reboot accounting skills for accounting professionals and their organizations can
have significant long-term impacts, particularly in the digital era. Accounting professionals who
fail to acquire new skills risk being left behind, as technological advancements continue to

5 Mohammad, J., & Khan, A. (2018), “Impact of digital technology on accounting practices: A review of the
literature”,Journal of Accounting & Organizational Change, 14(1), 3-21.

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shape the accounting landscape. Similarly, organizations that do not invest in training their
accounting professionals risk falling behind in the digital age, potentially losing out on valuable
opportunities to gain a competitive advantage.

According to a report by the World Economic Forum (WEF, 2018), the skills gap in the
accounting profession is likely to widen due to the rapid advancement of technology. 6 The
report notes that many accounting professionals lack the skills required to work with new
technologies, such as artificial intelligence and machine learning. This skills gap can lead to a
lack of innovation in the accounting profession, with organizations failing to leverage the full
potential of technology to improve their operations.

The failure to reboot accounting skills can also lead to a lack of trust in the accounting
profession. As noted by Hendrickson (2019), accounting professionals who are not up-to-date
with the latest technological tools and software may not be able to provide accurate and reliable
financial information.7 This can erode trust in the accounting profession, particularly in the
wake of accounting scandals, such as the Enron scandal, which highlighted the need for
transparency and accountability in financial reporting.

In addition, the failure to reboot accounting skills can lead to a loss of job opportunities for
accounting professionals. As new technologies continue to automate traditional accounting
tasks, the demand for manual accounting tasks is likely to decline, leading to job losses for
accounting professionals who have not updated their skills. This trend is evident in the
accounting industry, where automation is increasingly being used to perform routine accounting
tasks, such as bookkeeping and tax preparation.8

In conclusion, the failure to reboot accounting skills for accounting professionals and their
organizations can have significant long-term impacts. It can lead to a lack of innovation, erode
trust in the accounting profession, and result in job losses for accounting professionals.
Therefore, accounting professionals and their organizations must invest in training and
upskilling to remain competitive in the digital era.

6 World Economic Forum. (2018) “The Future of Jobs Report 2018. Geneva: World Economic Forum”.
7 Hendrickson, J. (2019) “ The Importance of Upgrading Accounting Skills for the Digital Age”
8 Association of Chartered Certified Accountants. (2019). Professional Accountants - The Future: Skills. London:
ACCA.

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WAYS TO REBOOT ACCOUNTING SKILLS IN DIGITAL ERA

The accounting profession is rapidly evolving in the digital era, and accounting professionals
need to keep pace with the latest technological advancements to stay competitive. Here are a
few ways accounting professionals can reboot their skills to stay competitive in the digital era:

● Learn new accounting software: Accounting professionals should stay updated with
the latest accounting software to remain competitive. This software can help to automate
manual tasks, reduce errors, and streamline financial reporting. Some of the popular
accounting software that accounting professionals should learn include QuickBooks,
Xero, and Sage.
● Develop data analysis skills: With the increasing amount of data generated by
businesses, accounting professionals should develop their data analysis skills. They
should learn how to extract, clean, and analyze data to gain insights that can help to
improve decision-making. Some of the popular data analysis tools that accounting
professionals should learn include Microsoft Excel, Tableau, and Power BI.
● Understand cloud computing: Accounting professionals should also have a basic
understanding of cloud computing. Cloud computing can help to reduce costs, increase
flexibility, and improve accessibility. Accounting professionals should learn how to
store, access, and share financial data securely in the cloud.
● Stay updated with industry trends: Accounting professionals should keep themselves
updated with the latest industry trends, including regulatory changes, new accounting
standards, and emerging technologies. They can do this by attending seminars, webinars,
and conferences, reading industry publications, and networking with other professionals.

According to a report by Deloitte, accounting professionals should embrace technological

advancements to remain competitive in the digital era. The report highlights the importance of
developing new skills, such as data analysis, cloud computing, and digital strategy, to stay
ahead of the competition.9

According to the Journal of Accountancy, "Accountants will need to focus on gaining expertise
in data analytics, cybersecurity, and other technologies, as well as developing critical thinking

9 Shivling, V. D., & Sasikumar, K. (2021) “A Study on Accounting Professionals' Perception of Rebooting Their
Skills to Stay Competitive in the Digital Era”, International Journal of Innovation and Scientific Research, 64-72.

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and problem-solving skills that cannot be easily automated".10 By adopting these strategies,
accounting professionals can stay competitive in the digital era. Accounting professionals must
continuously update their skills to stay competitive in the digital era. They should learn new
accounting software, develop data

CHALLENGES FACED BY ACCOUNTANTS WHILE REBOOTING THEIR

ACCOUNTING SKILLS

Rebooting skills in the digital era can be a daunting task for accounting professionals, and they
may face several challenges along the way. Here are some of the challenges and ways to
address them:

● Resistance to Change: Accounting professionals may be resistant to change,

particularly when it comes to adopting new technologies or approaches. To overcome
this challenge, they need to recognize the value of updating their skills to remain
relevant in the digital era. They can do this by attending training sessions, conferences,
and networking with other professionals to learn about new trends and best practices.
● Lack of Technical Skills: As technology continues to evolve, accounting professionals
may find that they lack the necessary technical skills to keep up with the pace of change.
To address this challenge, they can consider taking online courses or attending training
programs that focus on digital skills, such as data analytics and cloud-based accounting
software.
● Cybersecurity Concerns: As accounting professionals increasingly rely on digital
technologies to store and process data, cybersecurity risks become more significant. To
address this challenge, they need to stay updated on cybersecurity best practices, such as
strong password policies and data encryption.
● Cost of Technology: Implementing new technologies can be expensive, particularly for
small accounting firms or individual practitioners. To address this challenge, accounting
professionals can consider adopting cloud-based solutions that offer flexible pricing
models and require lower upfront investments.

10 Thomson Suff, “Developing Account’’(Jan 13,2021)

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 ● Need for Soft Skills: While technical skills are essential in the digital era, accounting
professionals also need to develop soft skills, such as critical thinking, communication,
and adaptability, to thrive in a changing environment. To address this challenge, they
can participate in networking events and collaborate with colleagues from different
backgrounds and disciplines to build their soft skills.

While accounting professionals face several challenges when rebooting their skills in the digital
era, they can address them by adopting a growth mindset, investing in learning opportunities,
and embracing new technologies and approaches.11
CONCLUSION
Accounting professionals must reboot their skills to stay competitive in the digital era. This
literature review identified several key themes, including the impact of technology on
accounting, changing accounting roles, the importance of continuous learning, collaborative
learning, soft skills, and the role of professional development. By acquiring new skills and
adapting to the changing landscape of accounting, professionals can stay competitive and
succeed in their roles.

SUGGESTION
To stay competitive in the digital era, accounting professionals need to constantly update and
reboot their skills. Here are some suggestions for accounting professionals to reboot their skills:

● Firstly, embrace technology and be willing to learn new tools and software. It is
important to keep up with the latest technological developments to remain relevant in the
industry.
● Secondly, develop data analytics skills to analyze and interpret data effectively. With the
increasing amount of data available, accounting professionals need to be proficient in
data analytics to succeed in their roles.
● Thirdly, improve soft skills like communication, critical thinking, and problem-solving.
These skills are essential in the digital era to collaborate effectively with team members
and clients.
● Fourthly, collaborate with other professionals in the industry to learn from each other and

11 Maynard Shannon,``Skills needed for Accounting to survive the robot Uprising ‘’,Oct 23,2-22

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 adapt to the changing landscape of accounting. Joining professional associations or
networking groups is an effective way to collaborate with other professionals.
● Fifthly, pursue professional development by attending conferences, webinars, or seminars
to learn about new developments and trends in accounting.
● Lastly, stay updated with the latest developments in accounting and technology. Reading
industry publications, following accounting blogs, and joining online forums are effective
ways to stay up-to-date.

By following these suggestions, accounting professionals can reboot their skills and stay
competitive in the digital era.

BIBLIOGRAPHY

1. https://us.aicpa.org/research/studiesandpapers.html
2. https://www.accountingweb.com/technology/trends/the-importance-of-upgrading-
accounting-skills-for-the-digital-age
3. https://www.accaglobal.com/gb/en/technical-activities/technical-resources-search/2016/
june/professional-accountants-the-future-report.html
4. https://www2.deloitte.com/content/dam/insights/us/articles/5081_Future-of-finance/The-
future-of-finance-CFOs-agenda.pdf
5. doi: 10.24331/ijisr.2021.15003
6. doi: 10.1108/JAOC-11-2015-0097
7. doi: 10.1016/j.jaccedu.2019.05.003
8. https://www.journalofaccountancy.com/news/2019/feb/skills-for-accountants-in-age-of-
automation-201920496.html
9. https://www2.deloitte.com/content/dam/insights/us/articles/5081_Future-of-finance/The-
future-of-finance-CFOs-agenda.pdf
10. https://www.accountingweb.com/technology/trends/the-importance-of-upgrading-
accounting-skills-for-the-digital-age

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