Data Analytics, Automation, and the Future of Accounting

It looks like some of the accounting folks out there are starting to realize how important data analytics and automation are to the accounting profession, and it's refreshing to see this! While I think we're still a ways to go before we see any major changes, it's at least a step in the right direction that there are some good articles getting written on the topics. These two articles piqued my interest and thought I would share.

Prospecting the Next Machine Age  - Finding CPAs’ role in the technological future. (Accounting Today)

To me, this article is saying automation is going to play a heavy role in the future of the accounting practice, and we shouldn't fear it. Instead, we should embrace it. I agree, and I think Python can play a huge role in helping provide all accountants with some basic automation tools at no cost, other than the time it takes to learn to use Python.

The next frontier in data analytics  - Why CPAs and organizations need to learn to use advanced technology to predict and achieve outcomes.  (Journal of Accountancy)

This article is a nice overview and discussion on data analytics in accounting and auditing. It mentions IDEA, ACL, and Excel as three tools commonly used in data analytics, but like most other places I've been reading about data analytics in Accounting, it doesn't mention Python. IDEA and ACL are very powerful and useful tools, but not cheap. Most accountants have Excel, but it's very limited. Python provides a nice middle ground that I think will help get a lot of the accounting firms and accounting departments to the next frontier if they don't have access to ACL or IDEA.

The article ends with the line "CPAs, whether working in public practice or industry, will enhance their career opportunities through the acquisition of additional data analytics expertise." Enter Python, the best tool for this job in my opinion.

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So what now? Stay tuned! I'm planning my next post as a super basic intro to Python for the non programmer, which will discuss the various ways to access Python, and will provide a few simple programs to try out. Sign up to receive an email notification when I add new posts!