Conference PaperPDF Available

Robot-Proof Accounting Careers: Capabilities For The Future Accountant

Authors:
  • Institute for Working Futures

Abstract

Is the accounting profession as vulnerable to job loss and disruption through automation and changed business models as international and Australasian research would suggest? To answer this vital question this session will report findings from the extensive research into the future accountant and professional capability requirements conducted by Chartered Accountants Australia and New Zealand (CA ANZ) and The Institute for Working Futures. Evidence-based insights will confirm how the fundamental role and activities of an accountant will be replaced, augmented or reconfigured by technology. Vulnerable accounting jobs will be isolated, and ‘jobs’ created by technology predicted. The session will confirm the capabilities required to be employable and sustain robot-proof careers in the emerging workforce. The research outlined in this paper will not only identify the skilling challenges, it will confirm an optimistic future constructed using novel people and professional development strategies that include flexible capability stacks, capability diagnostic tools, micro-credentials, and lifelong records held in the blockchain
CIO Summit
Robot-Proof Accounting Careers:
Capabilities For The Future Accountant
Marcus Bowles
Director, The Institute for Working Futures pty ltd
Professor, Tasmanian Institute for Learning & Teaching,
University of Tasmania
© Chartered Accountants Australia and New Zealand 2020
2Robot-proof Accounting Careers
Is the accounting profession as vulnerable to job loss and disruption
as international and Australasian research would suggest? The
outlook is unexpectedly positive thanks to novel people and
professional development strategies such as flexible capability
stacks, capability diagnostic tools and micro-credentials. Hear
findings from extensive research conducted by CA ANZ and The
Institute for Working Futures into the accountant of the future and
their professional capabilities.
Understand the impact of automation and changed business
models on accounting
Get evidence-based insights on how the role and activities of an
accountant will be replaced, augmented or reconfigured by
technology
Learn about the skilling challenges facing firms and how they can
overcome them
Abstract
© Chartered Accountants Australia and New Zealand 2020
3Robot-proof Accounting Careers
Future outlook
Accountancy is regarded as a safe profession
that withstands economic cycles. But with the
wave of automation and digitalisation
sweeping across every facet of business
today, how do we future-proof ourselves and
be ready for the transformation of our
profession?
Participant industry focus group, 2018-19
© Chartered Accountants Australia and New Zealand 2020
A. The noise and anxiety
Robots take accounting jobs
Robot-proof Accounting Careers4
© Chartered Accountants Australia and New Zealand 2020
Future for
accountants
The World Economic Forum (WEF)
predicted in 2018 that the effect of
automation and robotic technologies would
see professional accountants and auditors
and the associated clerical roles in
accounting, bookkeeping, and payroll
effectively lose over 40% of the current
employment numbers within five years,
effectively becoming a redundant
occupation across the globe by 2028.1
1. WEF (Sept.2018)
Future of Jobs Survey 2018, page 9.
Robot-proof Accounting Careers
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© Chartered Accountants Australia and New Zealand 2020
6Robot-proof Accounting Careers
Research in 2018 from The Regional Australia
Institute supported the earlier New Zealand
Institute of Economic Research that showed the
accounting occupation as the most at risk for
job loss caused by automation.
Research suggested employment in smaller,
regional accounting firms would be hardest hit.
Accountants most at
risk of job loss
RAI (September 2018). The RAI’s Method for Assessing Regional Job Vulnerability to Automation,
Shared Inquiry Program 2018. Canberra
© Chartered Accountants Australia and New Zealand 2020
2. Automation of Accounting
The reality is human
Robot-proof Accounting Careers
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© Chartered Accountants Australia and New Zealand 2020
Automation is
reshaping jobs
& employment
REPLACE
Some 32,805
job loss
AUGMENT
Some 34,992
reskilled for
reshaped jobs
CREATE
43,740 will move
to new jobs
15%
of us 16%
of us 20%
of us
Source: Faethm data using their predictive platform, released 18
June 2019; data modelling employment in all industries, Australia
November 2018 to November 2025. Numbers of workers based on
ABS (2018) 6202.0 Labour Force Australia Aug. 2019 reporting
total employment of 218,700 total workers in the ANZSCO 221
classification. Balance of workforce (49%) remain largely
unaffected.
Accounting profession
jobs in Australia within 6
years 2019-2025
Total 111,537
© Chartered Accountants Australia and New Zealand 2020
Social and emotional
Output, reasoning and sensing.
Natural language
Computerised systems that analyse,
understand and engage with humans in a
personalised form.
Cognition
Machine learning and robotic cognitive
automation through replication of human
patterns, reasoning, creativity, etc.
Sensory
perception, special assessment and
judgement.
Physical
Deployment of robotics or AI that
replicates motor human skills,
navigation and mobility.
01
02
03
05
Automation of
accounting work
The following typologies of automation include
technologies that can now automate a range of human-
centred physical and cognitive activities. 04
06
Process
Automate routine processes
such as robotic process
automation (RPA) of
physical, informational and
transactions systems.
9
Less automation
of human tasks
More Automation
of human tasks
Robot-proof Accounting Careers
Job isn’t a
reliable currency
Jobs as well defined classification
of tasks bundled into boxes
people are skilled to fill (e.g.
ANZSCO), has diminished future
utility or predictive reliability.
Boundaries blur as jobs are
automated or human tasks are
resorted in ways that ignore
traditional occupational
boundaries.
Tying employment, education and
government funding to existing
classified jobs often fails to isolate
new employment growth.
We know:
Cognitive and
Mindset
Non-Technical
(Human Skills)
Personal
Attributes/
Behaviours
Technical
Capability is the
workforce currency
Capabilities are strategic.
They underpin the capacity of an
organisation, industry or professional
workforce for action.
Capabilities emphasise and encompass
more than vocational or discipline-based
skill, knowledge or competencies.
Capability Frameworks complement but
deliberately extend beyond competency
models.
They are built to provide a high-level insight
into the skills, knowledge, personal
attributes and experiences required in the
future workforce, not just in a job.
© Chartered Accountants Australia and New Zealand 2020
Deloitte (June 2019). The path to prosperity: Why the future of work is human,
Building t he Lucky Country #7 , Deloitte Insight, page ii.
Focus on being human
The nature of work is changing. Today’s
jobs are increasingly likely to require you
to use your head rather than your hands,
a trend that has been playing out for
some time.
There is another factor at play.
Regardless if jobs rely on brains or
brawn, it’s the less routine jobs that are
harder to automate, and that is where
employment has been growing.
Robot-proof Accounting Careers12
Future accountant role dimensions
Advisor Transformer
Steward Processor
Performance
Conformance
Physical
Cognitive Far from becoming redundant any examination of
capabilities tied to accounting skills and roles show
significant demand increase in the future workforce.
But how we viewed the profession as a discipline with
homogeneous ‘job roles’ has seriously limited future
insights into employment growth.
For instance: Jobs mapped to the Processor quadrant
(e.g., accounts clerk, treasury assistant) are more likely
to me automated than those in the Transformer
quadrant (e.g., financial manager, financial data analyst).
This shapes not only capability development, but also
career planning and skilling strategies that transition
people in these accountancy roles into more sustainable
careers.
For instance: Skills or courses mapped to the Steward
quadrant are likely to be more human-centred but need to
have a focus on analysis, business intelligence/
governance if they are to remain more ‘bullet proof’ to
automation and change.
A Conceptual Model
Most at risk
Most robot-proof
© Chartered Accountants Australia and New Zealand 2020
3. CA ANZ Capability Model
What, why and how
Robot-proof Accounting Careers14
© Chartered Accountants Australia and New Zealand 2020
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Technical Domain
Non-Technical Domain
1. Personal
2. Business
3. Leadership
Capability Model
^ Research confirmed these six capabilities are considered essential in all future
accounting job roles, at all levels of work, irrespective of the role type or location.
© Chartered Accountants Australia and New Zealand 2020
Consultation and validation
In addition, the model has been endorsed by PWC’s Skills for Australia
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01
02
03
Roles may include: Accountant,
Senior accountant, analyst
Team Player
Roles may include: Manager,
Senior manager, and Financial
controller.
Leader
Roles may include: Partner, Senior
partner, Director, Financial Director,
and C-Suite
Executive
Career & Member Stages
The capabilities detail each of three career levels.
© Chartered Accountants Australia and New Zealand 2020
Robot-proof Accounting Careers
Capability design
The design logic for the CA ANZ Capability Model assures support a ‘well rounded’ approach to CPD and graduate programs
that promote job ready professions. All career and development levels align to the Australian Qualifications Framework to
optimise potential for tying capability attainment to formal recognition (e.g., credentials).
Technical Knowledge & Theory
Non-Technical Skills
Thinking and Cognition
Future Skills
Australian
Qualification
Framework
(& NZQF)
Level 8 & 9
18
© Chartered Accountants Australia and New Zealand 2020
Capability
structure
(example)
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© Chartered Accountants Australia and New Zealand 2020
Role profiling
using the model -excerpt
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© Chartered Accountants Australia and New Zealand 2020
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4. Next Steps
Being future ready
Robot-proof Accounting Careers
EVERYTHING CONFIRMED WE HAVE TO
RETHINK THE WAY
WE DEVELOP SKILLS AND CREATE
FUTURE READY
MEMBERS AND PROFESSIONALS
© Chartered Accountants Australia and New Zealand 2020
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Capability Clusters show how capabilities developed in one
‘job’ relate not only to what the workers does today, they
can be used to predict future employment prospects.
You want jobs that develop capabilities that open more
employment opportunities in roles requiring similar
capabilities (job neighbourhoods).
In the example provided, Finance Manager looks to be a
good job given current employment.But the indicative 10-
year employment growth projections are poor.But
employment for the Cost Accountant is comparatively
lower today, and the Systems Accountant is much lower.
But the latter job has much better long-term growth
projections.Nevertheless, the capabilities required for all
jobs reside in arelated cluster or neighbourhood.Small ,
targetted CPD or training can allow professionals to move
to growth opportunities in that region prior to job loss.
Employment Growth
Finance Manager
Employment Growth
Systems Accountant
Employment Growth
Tax Manager
Capability Clusters: Predicting employment
Numbers Employed August 2018
Projected Job Growth August 2018-2028
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© Chartered Accountants Australia and New Zealand 2020
Online Diagnostic and
Role profiling (B2C)
Diagnostic tool determines
individual capability gaps and
allows skills plans to target future
job roles or just to highlight
individual development needs.
CA
Capability
Model
Capability Model in action
CA Graduate Program
Provide baseline capability
approach that drives the content
design and assessable outcomes
the graduate program
CPD alignment
Model forms the base organising
principle for all CPD offerings
across organisation.
Employers (B2B)
Employer profile within diagnostic tool for
cohort view of capabilities to support workforce
planning, skills audits and development of
learning and talent plans.
Micro-credentials
Model becomes the basis upon
which digital badges &
credentials are awarded/
recognised.
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© Chartered Accountants Australia and New Zealand 2020
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Capability Diagnostic
© Chartered Accountants Australia and New Zealand 2020
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Workforce Capability Report
© Chartered Accountants Australia and New Zealand 2020
Micro-Credentials
Digital Credentials and Badges
Credentials that can be digitally displayed
Records professional journey & lifelong progress
Secure & sharable on LinkedIn, Facebook, Twitter, etc
Accessible, portable & controlled by owner
Robot-proof Accounting Careers
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Public view
This badge was issued to Dawn Brown on 3 June 2019
Tax
Issued by Victoria University
Authorised by Chartered Accountants Australia & New Zealand
Earners of the Tax badge at Leader level have demonstrated consistent proficiency and professional achievement against the Tax standard in the
CA ANZ Capability Model. Earners may be postgraduate professionals with substantial award or non-award learning and applied experience. This
badged credential is considered equivalent to 12 credit points (one full unit of study) in the Masters of Business (Accounting) course at Victoria
University.
Earning Criteria
Consistent proficiency and professional achievement against the Tax standard in the CA ANZ Capability Model at Leader level
Skills
Standards
Credit points -Masters of Business (Accounting) -Victoria University
This badged credential is considered equivalent to 12 credit points (one full unit of study) in the Masters of Business (Accounting) course at Victoria
University
Link to labour market insights real time jobs
Link to charteredaccountantsanz.com
Link to www.vu.edu.au Masters of Business (Accounting) page
Verifiable
Co-branding
Additional details
Link to more info
CONCEPTUAL EXAMPLE ONLY USING ACCLAIM PLATFORM
Earner view
Recommended
Enrollment in Masters of Business (Accounting) course at Victoria University
Assessment against the Tax standard in the CA ANZ Capability Model at Executive level
Evidence
Recommended next steps with relevant links
Digital credentials go beyond paper certificates
They are validated, verifiable, portable, and uniquely linked
to the earner/ recipient
Ability to embed evidence
Tax
Issued by Victoria University
Authorised by Chartered Accountants Australia & New Zealand
Earners of the Tax badge at Leader level have demonstrated consistent proficiency and professional achievement against the Tax standard in the
CA ANZ Capability Model. Earners may be postgraduate professionals with substantial award or non-award learning and applied experience. This
badged credential is considered equivalent to 12 credit points (one full unit of study) in the Masters of Business (Accounting) course at Victoria
University.
Skills
Co-branding
Additional details
Link to more info
This badge was issued to Dawn Brown on 3 June 2019 Share to LinkedIn, Twitter, Facebook, Email +++
CONCEPTUAL EXAMPLE ONLY USING ACCLAIM PLATFORM
© Chartered Accountants Australia and New Zealand 2020
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Stacks: Flexible Learning & Recognition
A professional at the postgraduate or Chartered Accountant
level may access an approved ‘package’ or stack to transition
from a narrowing career corridor into the emerging
Cyber
Accountant
future career opportunity. This stack may have
credit as a new specialisation in a university Masters course,
for instance:
4 Capabilities =
= 4 Units of Study
5737 Master of
Professional Accounting
(4 of 16 units)
25%
Credit
CONCEPTUAL EXAMPLE ONLY
© Chartered Accountants Australia and New Zealand 2020
END
Dr Marcus Bowles
mbowles@workingfutures.com.au | 0412439009
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