Emerging trends and technologies are revolutionising the accounting functions and practices as we know them. With the increasing adoption of artificial intelligence (AI) tools, automating transactional and repetitive tasks has become a standard. Practitioners are now expected to deliver value by focusing on value-added tasks.

Meanwhile, the rise in analytics heightens clients’ expectations for more insightful advisory services and data-driven decision-making for mergers and acquisitions, restructuring and insolvency, and business valuation. Following the rapid adoption of digital tools such as cloud computing, cyber security risks have also risen, creating pressure for financial forensics and internal audit teams to strengthen their risk management strategies to uphold the safety of critical data.

1. Artificial Intelligence (AI) and Analytics

With artificial intelligence (AI) and analytics tools, tax associates can effectively analyse large, cleansed datasets, saving time and minimising errors. Meanwhile, these tools serve as valuable allies for auditors to detect anomalies, enabling a more comprehensive evaluation of financial statements. They can also generate deeper insights, facilitating better data-driven discussions and empowering practitioners to be stronger value drivers for their clients. Undeniably, successfully leveraging data analytics and artificial intelligence requires upskilling. However, practitioners can unlock numerous advantages, including identifying and monitoring risks more efficiently and in real-time – ultimately driving their practice towards success.

2. Intelligent Automation

Intelligent automation is revolutionary in its ability to effectively automate transactional and repetitive tasks in banking and finance, and accounting practices. This not only allows higher efficiency in daily tasks but also shifts the focus of assurance and tax, and financial accounting professionals to more value-added advisory work.

This means accountants and auditors increasingly need to acquire skills in emerging disciplines to offer dynamic interpretations of deliverables from smart technology. This increased demand for hybrid skills creates an attractive environment for practitioners to uplift their technical abilities and strategic thinking that are valuable for career growth and attracts talents to the industry.

3. Cyber Security

The adoption of emerging technologies and software like cloud computing have undoubtedly empowered practitioners in managing financial data with greater accuracy and agility. However, this has also created vulnerabilities in accounting practices, making bolstering risk management strategies essential.

Pivotal to this endeavour is the adoption of a proactive approach that prioritises cyber security, and shoring up digital defences entails continuous vigilance. In this context, job redesign can be anticipated for positions like risk advisory associate, financial forensics executive and audit associate, who are now required to meet these new needs in their daily work.

4. Blockchain

Blockchain, a type of database that collects and decentralises information in interconnected blocks, is also reshaping the accounting landscape. Prized for its robust security and transparency, blockchain offers a secure platform to accurately transfer asset ownership and maintain consistent, detailed records.

Through this, it not only ensures clarity, enhanced risk management and guarantees the integrity of financial data while streamlining processes. As this technology becomes more prevalent, practitioners will benefit from a more secure audit trail that enhances task efficiency. Additionally, blockchain’s ability to make unchangeable transaction records could diminish the need to audit internal transactions, prompting internal auditors to re-evaluate their roles in the coming years.

5. Cloud Computing

Cloud Computing is transforming the accounting landscape by offering enhanced accessibility to computer system resources for those with internet access and authorised devices. This bolsters productivity by seamlessly streamlining information dissemination and promoting teamwork, even from remote locations. Another advantage is that it facilitates real-time reporting and provides accurate account balances by minimising human errors arising from manual data entries.

However, adopting cloud computing comes with challenges, including ensuring the security of information in the cloud and mitigating potential risks. This scenario opens doors for practitioners to acquire new competencies, such as mastering cloud integration techniques and enhancing their cybersecurity knowledge, to manage the opportunities and challenges of cloud computing adeptly.

Against this backdrop, the wave of transformation driven by emerging trends and technologies is expected to affect up to 38 existing roles across 10 functional tracks in accounting practices. This shift will necessitate a realignment of job tasks and the acquisition of new skills to adapt to the evolving landscape.

High Impact on Jobs in Accounting Practices

Within this wave of transformation, approximately seven job roles in the accounting practices sector are expected to undergo significant changes over the next five years, with job tasks being enlarged, reconfigured, or enriched.

For instance, audit associates will focus on investigating anomalies flagged by AI through leveraging data analytics and AI application skills. Risk Advisory and Financial Forensics tasks have already experienced changes and undergone redesign in the industry, but continue to hold relevance within the accounting industry.

Concurrently, existing professionals with relevant expertise will need upskilling to adapt to new ways of working. This demand for talent within the sector is also expected to continue as roles evolve, providing opportunities for individuals to acquire new skills and expand their capabilities.

High-impact job roles in accounting practices requiring major job redesign:

• Audit Associate/Audit Assistant Associate

• Tax Associate/Tax Executive

• Accounts Executive/Accounts Assistant

• Risk Advisory Associate/Risk Advisory Executive

• Financial Forensics Associate/Financial Forensics Executive

• Corporate Secretarial Associate

• Senior Internal Auditor/Internal Auditor

Medium Impact on Jobs in Accounting Practices

Among the jobs in accounting practices affected by technology and trends, the duties of 21 job roles are anticipated to expand, necessitating moderate reskilling or upskilling. For instance, Tax Seniors will harness the power of Optical Character Recognition (OCR) to efficiently extract data and streamline information-gathering processes, replacing traditional manual methods.

With these roles undergoing a moderate redesign, the focus will be on equipping the existing talent pool with the necessary knowledge and competencies to effectively embrace new ways of working and meet the evolving demands of the sector.

Medium-impact job roles in accounting practices requiring moderate job redesign:

As organisations navigate the complexities of these exciting transformations in accounting practices, new opportunities are created. Specifically, market demand is growing for professionals with a unique blend of skills and expertise that enable them to bridge the gaps between traditional accounting practices, innovative technologies and trends.

1. IT Auditor (Assurance, Risk Advisory and Internal Audit)

Emerging from the digital trends are evolving accounting roles, one of which is the IT Auditor role, which covers assurance, risk advisory, and internal audit. These experts scrutinise, evaluate and fortify an organisation's IT systems, mitigating cyber security risks and maintaining IT controls.

2. Ethical Hacker (Financial Forensics)

The escalating threat of cyberattacks has fuelled a surge in demand for ethical hackers. As digital security vanguards, they uncover cyber vulnerabilities, prevent attacks and offer remediation advice, placing them at the forefront of safeguarding businesses’ financial stability and reputation.

3. Environmental, Social and Governance (ESG) Specialist (Financial Accounting and Business Valuation)

As non-financial reporting becomes a top priority for businesses, the demand for Environmental, Social, and Governance (ESG) Specialists grows. These experts assess social and environmental trends, develop ESG strategies, and ensure compliance with regulations, playing a vital role in aligning businesses with industry standards.

As digital transformation continues to drive change throughout the accounting landscape, practitioners must possess diverse skills to understand and effectively combat emerging cyber threats. In particular, practitioners will be more involved in pre-emptive investigations than ever and leveraging analytics to support their investigative works.

Against this backdrop, professionals with deep expertise in behavioural analysis, predictive screening, data analytics and fraud risk management emerge as valuable contributors highly sought after by organisations. Similarly, possessing these skills will give jobseekers extra bargaining chips in the job market.

The Skills Framework

The Skills Framework (SFw) is a SkillsFuture initiative designed to promote skills mastery and lifelong learning for the Singapore workforce.

For more information on each job role (complete list of skills, critical work functions and key tasks), please refer to the Skills Framework for Accountancy.