Technology innovation drives accountancy job changes – Computer Weekly

Report on the Evolving Role of Accounting in Support of Sustainable Development Goals

A study commissioned by Intuit Software has highlighted the critical role of professional accounting services in enhancing the financial stability of Small and Mid-sized Enterprises (SMEs). The findings indicate a significant transformation within the accounting profession, driven by technological advancements such as Artificial Intelligence (AI). This evolution presents opportunities to advance several Sustainable Development Goals (SDGs), particularly SDG 8 (Decent Work and Economic Growth) and SDG 9 (Industry, Innovation, and Infrastructure).

Advancing SDG 8: Decent Work and Economic Growth

The report underscores the contribution of accounting services to the sustainability and growth of SMEs, which are fundamental drivers of economic growth and job creation.

Key Findings on SME Financial Health

• Improved Cash Flow Management: 71% of surveyed businesses affirmed that professional accounting services improve their cash flow management, enabling smoother and more informed business decision-making.
• Strengthened Financial Reporting: 73.1% of respondents reported that professional accounting services strengthened their financial reporting, which in turn increased their opportunities to secure bank loans and government grants essential for expansion and resilience.
• Enhanced Financial Literacy: Approximately 80% of SME leaders noted that engaging an accountant had a moderate to transformational effect on their financial literacy, empowering them to build more sustainable enterprises.

By bolstering the financial foundation of SMEs, accountants directly contribute to SDG 8 by fostering sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.

Driving SDG 9: Industry, Innovation, and Infrastructure

The integration of AI into accounting software is reshaping the industry, moving it towards a model that prioritizes innovation, efficiency, and high-value strategic advisory services, in direct alignment with SDG 9.

The Impact of Technological Innovation

1. AI as an Accelerant and Disruptor: AI is identified as a key technology that is accelerating work processes while simultaneously disrupting traditional accounting functions. This technological upgrade is pivotal for building resilient infrastructure and fostering innovation within the professional services industry.
2. Transition to Strategic Advisory: The automation of routine tasks by AI is creating an opportunity for accountants to evolve into strategic business advisors. This shift involves providing specialized, sector-specific advice (e.g., e-commerce) and proactive communication to help SMEs thrive and grow strategically.
3. Development of AI-Native Platforms: Companies like Intuit are developing integrated, AI-native platforms (e.g., Intuit Accountant Suite) that provide accounting firms with comprehensive tools. These platforms break down data silos by integrating information from various business systems, such as Customer Relationship Management (CRM).

This technological transformation allows accountants to provide a more holistic analysis of a business’s performance, telling a story based not just on financial numbers but also on operational data like marketing effectiveness. This deeper analytical capability represents a significant innovation, enabling accountants to offer strategic insights that drive sustainable industrialization and foster innovation as outlined in SDG 9.

1. Relevant Sustainable Development Goals (SDGs)

The article highlights issues and advancements that are directly connected to two primary Sustainable Development Goals:

• SDG 8: Decent Work and Economic Growth

  This goal is addressed through the article’s focus on improving the financial health and decision-making capabilities of Small and Mid-sized Enterprises (SMEs). By leveraging professional accounting services enhanced by AI, SMEs can better manage cash flow, strengthen financial reporting, and achieve growth. The article states that these services can “drive meaningful economic impact,” which is central to SDG 8’s mission to promote sustained, inclusive, and sustainable economic growth.

• SDG 9: Industry, Innovation, and Infrastructure

  The core theme of the article is the technological innovation (Artificial Intelligence) being integrated into the accounting industry. It discusses the development of new AI-native platforms like the “Intuit Accountant Suite” and how they are transforming accounting services. This directly relates to SDG 9’s aim to build resilient infrastructure, promote inclusive and sustainable industrialization, and foster innovation.

2. Specific SDG Targets

Based on the article’s content, the following specific targets can be identified:

1. Target 8.2: Achieve higher levels of economic productivity through diversification, technological upgrading and innovation.

   The article explains how AI is an “accelerant” and a “disruptor” that facilitates technological upgrading within the accounting profession. The shift from traditional bookkeeping to strategic financial advisory, enabled by AI platforms that provide deeper data insights (“understand why sales has gone up or why expenses has gone down”), directly contributes to higher productivity for both accountants and the SMEs they serve.

2. Target 8.3: Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises.

   The entire study discussed in the article is centered on supporting SMEs. The finding that accounting services improve financial literacy and strengthen financial reporting, which in turn leads to “increasing opportunities to get bank loans or government grants,” directly aligns with this target’s goal of encouraging the growth of SMEs.

3. Target 9.3: Increase the access of small-scale industrial and other enterprises… to financial services, including affordable credit.

   The article explicitly mentions that for 73.1% of SMEs, using professional accounting services “has strengthened their financial reporting, and this alone has offered increasing opportunities to get bank loans or government grants.” This directly addresses the challenge of increasing SME access to financial services and credit, a key component of Target 9.3.

3. Mentioned or Implied Indicators

The article provides specific data points and concepts that can serve as indicators to measure progress towards the identified targets:

• Indicator for Target 8.3: Percentage of SMEs reporting improved business management.

  The article provides direct quantitative data from its survey that can be used as an indicator. Specifically, “71% of the businesses polled agree that professional accounting services improve cash flow management.” This measures the effectiveness of support services for SMEs.

• Indicator for Target 8.3: Improvement in financial literacy among SME leaders.

  The article states, “Around 80% of SME leaders who have used an accountant said it has had either a moderate, significant or transformational effect on their financial literacy.” This percentage serves as a direct indicator of capacity-building within SMEs.

• Indicator for Target 9.3: Improved access to finance for SMEs.

  While not providing a final number, the article implies an indicator by linking strengthened financial reporting to better access to finance. The statement that “73.1% said that using professional accounting services has strengthened their financial reporting, and this alone has offered increasing opportunities to get bank loans or government grants” suggests that the percentage of SMEs successfully securing loans after using such services could be a measurable indicator.

• Indicator for Target 8.2: Adoption of innovative technologies by an industry.

  The article’s discussion of the new “Intuit Accountant Suite” and its adoption by firms like Boffix implies that the rate of adoption of such AI-native platforms within the accounting industry can be used as an indicator for technological upgrading and innovation.

4. Summary Table of SDGs, Targets, and Indicators

Source: computerweekly.com