Shortage of accountants shines light on benefits of digitalisation
A recent article on CPA Practice Advisor highlights how the digital transformation can play an important role in easing pressure on accounting firms struggling with a talent shortage. With high demand for Certified Public Accountants (CPAs), accounting firms are struggling to hire accountants, with a 17 percent drop in employed accountants and auditors from a 2019 peak, according to Bloomberg Tax analysis. Deloitte ranks the talent shortage as one of the top challenges expected to disrupt businesses in 2021.
The CPA shortage is particularly burdensome for middle market companies, where financial decisions are tied to financial reports. With deadlines approaching for annual and quarterly financial statement filings, there is a pressing need for audited financial statements.
The article highlights increased automation and digitalisation as a potential solution for the talent shortage. Automation streamlines workflows, reduces errors, and eliminates certain time-consuming manual tasks. It also creates consistency, reducing errors and simplifying compliance.
Digital financial reporting (using XBRL) makes increased automation possible, allowing for streamlined and efficient preparation, analysis, and auditing of financial statements. The use of machine-readable, standardised data allows for automation of the extraction, validation, and transformation of financial data, reducing the manual effort required and minimising the risk of errors. This not only saves time but also enhances the accuracy and reliability of financial reporting.
Read more here.
