The possible challenge faced by accountants and

accounting graduates in 21th century

Since 21th century, a quiet evolution has been taking place in accounting
profession and finance profession and management profession. Accountant no longer
is a secure lifetime job because it need more abilities to involve this job and this
industry facing a lot of challenges.

In 21th century, the modern society, the better scientific technology is

developed cause the bookkeeper’s job has been replaced by the computer. Example:
Nowadays, the UBS computer accounting system become very popular in Malaysia
and it have 5 million users. (ubs-software, 2006)Thus, the recording job no longer
depend on accountant. Despite that, accountant still playing an important role in
business community and the demand of accountant never decrease. Why nowadays
many enterprises using computer software to process the company data?

Speed, the most glaring difference between traditional and computerized

accounting is the speed of operations. With an accounting program, data is entered
once and it is saved. The program provides management with reports in a speed never
dreamed possible in the traditional days. No more waiting days or weeks to know
whether your business is making a profit. Using computerized accounting,
information can be accessed in a matter of minutes. Once data is available in the
system, it can be used in reports, queries and analysis. (Shanker, n.d.)

Accuracy，computerized systems have drastically increased accuracy of

calculations when compared to the traditional, manual system, in which columns had
to be added up, numbers moved from one page to the next, and trial balance and
financial statements manually compiled. If errors occurred, many hours had to be
spent trying to find and correct them. With accounting software, this problem is
eliminated. In the case of accounting spreadsheets, adding simple formulas still may
be needed, but it is an easier and more accurate process. Efficiency goes through the
roof when a computerized system is used. (Shanker, n.d.)

Costs, the traditional manual accounting system with paper and pencil is
cheaper than the computerized version, in which a firm needs a computer, software,
printer and other expenses associated with a system. The manual system may work for
small businesses up to a certain point, but with the affordable costs of computers and
software, many firms are opting for the computerized system. They are easy to use,
and finding experienced employees to run the system is not a hurdle. (Shanker, n.d.)

Backups, when using a manual system, the risk of losing data is real. If
important papers are damaged or destroyed, that work may have to be re-created.
Copies of the original work can be made, but that could be expensive and time-
consuming. Accounting on a computerized system offers the choice of saving work
on a CD, portable or external hard drive, flash drive, or even online. Many firms back
up data every night as a precaution. If something happens the next day, the data can
be restored from the backup. (Shanker, n.d.)

Considerations, using a computerized accounting system keeps all of the

information organized and in one place; the computer hard drive. Finding and
accessing information on an accounting software program is much easier than the
traditional method. Specific data can be found using system functions, which usually
include a "find" key. For example, finding information about a vendor on a manual
system could take many steps and significant time. The same process in a
computerized system most likely would yield the information in a snap, with less
confusion and aggravation. (Shanker, n.d.)

Accountants are now referred to as “Navigator” or “Guardian of the Business

Model” whom has the most valuable of financial and non-financial data on their hand.
Those data are important to company for marketing planning, financial planning,
producing planning etc. Accountants are now being relied upon to chart the path for
the company in this turbulent environment. Accountants are given the mandate to
ensure that the business is sustainable, that corporate objectives are realised, which
will eventually lead to shareholder wealth maximization. This situation shows that the
relationship between accountant and company not only employment, but also
establish a constructive and strategic partnership toward future. (Siew, 2011) This
initiative represents an enlargement of the traditional role of management accountants
as purveyors of ad hoc reports to line management and the board. This was a necessity
when enterprise systems were opaque data mountains that required skilled financial
analysis and presentation before line management could make sense of them.
However, corporate performance measurement systems are now delivering much of
what a management accountant used to do, direct to an executive’s PC, with all the
drill down facilities that any line manager could wish for. (Harrington, 2007)

For an accountant who are starting to be a strategic partners or an accounting

graduate who are starting the internship. They must grasp the information of company
such as company’s operating mode, model of capital, cash flow etc. The best way for
them to get these information is from the managers and office workers and work
closer with them. Accountant should work in group with the management, not
individual ; the good interpersonal skills would help accountants easier to cooperate
with company and sharing idea or communicate each other.

Secondly, corporations are no longer interested in historical financial

performance but instead are interested in the best course of action that should be
pursued given the historical data. This is a significant shift for accountants because
they are now required to occupy a strategic role, one that places them at the forefront
of the company. Contemporary accountants need to possess sharp analytical skills
because the onus is on them to critically assess the numbers to pinpoint trends and
opportunities which can be capitalized upon to gain a competitive advantage.
Accountants are expected to provide recommendations to the decision-makers on
strategy and to have these supported by detailed financial analysis. (Siew, 2011) “It is
all about the pressure to see that the projects you are launching and the investments
you are making are sound and will generate shareholder value. It’s all about the
principle of stewardship,” Management accountants have a great opportunity to step
up and show that they – with the help of training in communications and business
skills – can provide this line of -business support at the strategic -decision-making
stage. For an example : As Peter Simons, one of the report’s authors and a technical
specialist at CIMA, explains, CIMA’s case is that some of the world’s leading
companies, such as Unilever, Shell, BP and Vodafone, are already transforming their
finance function. The main aim is to produce business partners instead of bean
counters. (Harrington, 2007)

Thirdly, an accountant in today’s corporate arena needs to possess value-

adding capabilities which can elevate the performance of the company to greater
heights. Therefore, it is imperative that the modern accountant identify areas which
are vital to the success corporations and to be skilful in these particular fields. For
example, corporate taxation is undeniably a complex subject but yet, it affects the
bottom line (i.e. profitability) greatly. Hence, an accountant who is knowledgeable in
tax laws and can apply such knowledge towards minimising the company’s exposure
to tax will surely be much sought after. The International Financial Reporting
Standards (IFRS) is also an area worth pursuing in light of the objective to achieve
global convergence in financial reporting. Other areas accountants should also study
are corporate governance frameworks and performance management. (Siew, 2011)
For an example: The AICPA has been working with companies like Shell, Coca-Cola
and BT Group to help understand their needs and develop a new archetype for the
corporate finance pro: the management accountant. These employees aren’t just
capturing data, but are working on the front end, helping define strategy and
calculating potential ROI on projects. Before a product goes to market, accountants
will analyze all the risk factors and probability scenarios, and communicate those to
major stakeholders. (Tuttle, 2013)

Furthermore, sound technical skills alone do not make a good accountant but
instead, these skills should be complemented by other “soft skills”. Soft skills, which
are not always the strength of accountants, include communications internally and
externally, interpersonal, relationship building, leadership and conviction and being
sensitive to and managing different organisational mindset. Most importantly, a 21st
century accountant should possess a proficient oratory skill, which is the ability to
speak convincingly in public. This is because CFOs/CEOs are required to make
presentations to the Board of Directors and represent the company at the Annual
General Meetings. Implicit in this is the requirement that an accountant should have a
strong command of the English language to garner respect from business associates.
However, given the rise of China as another economic superpower, proficiency in
Mandarin is also a must for accountants. Good communication skills are needed as
well because an accountant needs to coordinate the finance function with other
functions such as sales, production, procurement etc. For example, discussions need
to be conducted with the Sales Manager pertaining to sales strategy so that the
accountant can ascertain how the strategy will eventually affect profitability. (Siew,
2011) Beside that, the communication skill is important is because accounting
profession needs to be seen to be addressing clear public concerns.
 Morever, the business environment seems to get smaller with every passing
day. Globalization of business become the impetus of change for the accountancy
profession. Everything change instantly just for following up the international’s
footstep because “survival of the fittest”. This is visible in the sense that, globalization
imposes new professional and personal challenges on accounting and creates new
career opportunities to individuals embracing the incessant accelerating change that
epitomizes globalization. (Siew, 2011)

“The global economy is in a state of volatility and uncertainty. Society

continues to undergo rapid and fundamental adjustments. The environmental changes
that are emerging continue to stress the system. Amidst this turbulence, the global
accountancy profession is itself undergoing change, driven as much by the wider
pressures coming from the evolving business world, as from internal pressures. The
profession is responding to the global financial crisis, to changing expectations and
standards while making the most of new opportunities.” (Chua, 2012)