Question

What are the biggest challenges for the accounting profession going forward in the foreign transactions advanced accounting area?

Answer 1

The 4 biggest accounting challenges today

Here are the four biggest accounting challenges facing businesses today.

1. Tax Cuts and Jobs Act implementation continues

The Tax Cuts and Jobs Act is shaping up to be the granddaddy of tax reforms, affecting everything from meals and entertainment expenses to depreciation.

Here are some of the biggest takeaways of the Tax Cuts and Jobs Act for businesses:

• Entertainment expenses (e.g., sporting events, concerts) are no longer deductible, though business-related meals are.
• Bonus depreciation allows businesses to deduct 100% of the depreciation on business assets such as vehicles, computers, and other equipment right away for the next three years (through 2022).
• Many more small businesses (those with $25 million or less in annual gross receipts instead of the previous threshold of $5 million or less) are eligible to use the cash method of accounting, which is often simpler and cheaper than accrual accounting.

2. Automation and AI are taking over more traditional accounting duties

Fear not, robots aren’t coming to take your job. But AI is becoming more and more capable of handling complex accounting duties such as collecting transactions and compiling them into financial statements and tax returns.

In fact, Gartner estimates that by implementing robotic process automation, an accounting team of 40 could save up to 25,000 hours of avoidable rework per year, freeing up time for higher value work such as analysis and forecasting while increasing engagement and reducing staff turnover.

On one hand, this is good news: Automation can take tedious work off your hefty to-do list. On the other hand, you need to know if your job is headed the way of the telephone switchboard operator.

3. Accountants need to diversify their skills

Yes, technology is reducing the need for traditional, rules-based accounting skills and increasing demand for financial analysis and strategy. But you can’t just roll out of bed one day and start doling out financial advice to your clients.

Unless you studied financial forecasting and risk analysis in college, you’re going to need to leverage some powerful analytics tools to help you provide useful information.

4. Cybersecurity is becoming a bigger priority

Gartner estimates that information security spending will exceed $124 billion worldwide in 2019.

Accounting information (e.g., credit card information, bank account numbers, passwords) is an especially hot target for hackers because it can be high-value.

As a business leader and/or accounting professional, your responsibility to protect your data goes well beyond the walls of your own company’s data; it includes the data for all contacts in your system, including clients, employees, and service providers.