Question

What are the five issues concerning governance issues in private companies in the field of accounting and tax practice ? And What are the accountants role regarding the issues ?

Answer 1

The accounting and Taxation field has been changing rapidly year to year, due to which the accountants are facing issues in their job roles. Mainly the following issues are impacting them:

1. Change in Technology:

• The chane in Technology made the accountants losing their jobs, though which improved the work of the corporates easy.
• The Artificial Intelligence becoming more capable of handling complex accounting duties such as collecting transactions and compiling them into financial statements and tax returns.
• Though the technology has been improving, the human interference need is till not vanished. Considering this, the accountants need to improve their skills, adapt the AI and IT enviroment. The double checking of the information, transactions and giving input has not removed the jobs of accountants permanently. One need to adapt to the change in technology and implement the changes in the AI.

2. Jobs Cut

The corporates are becoming less interested in the jobs of accountants, because of the automation that has been adopted in to the industry. The corporates are not preferring, since they save alot of costs incurred on the man power such as salaries, meals, conveyance etc.

Solution to this is that the accountants need to be upto date of the amendments in taxation, accounting, changes that occur in the software etc. to not to lose their jobs.

3. Adapting to rapid Change

Most of the accountants are still relying on the old methods of practices in their fields. One need to improve their skills and adapt the changes into the organisation. This can be overcome by recognising, learning and adapting the changes that come into the environment around us.

4. Single performance Tasks.

The accountants most of their time perform the routine tasks in the organisation. One need to improve their role and impact on the organisation by shifting to advisory services. The companies profit can be improved by giving the top management better advisory, investment, hedging, tax saving ideas, which makes the accountants improving, impacting the company and their position in the company.

5. Cyber Security

Accounting information (e.g., credit card information, passwords) is an especially hot target for hackers because it can be high-value. As an accounting professional, your responsibility is to protect data that goes well beyond the walls of your own company; it includes the data for all contacts in your system, including clients, employees, and service providers.

To overcome this, one need to update the softwares, passwords, logins, restricted usage, removing unnecessary data.