Real world ready | Cloud
Navigating a future in the cloud
Cloud accounting has revolutionised the lives of many finance professionals by making real-time data more accessible than ever before. Here, we investigate what this means for students preparing to navigate the working world.
1
Stay in the loop
Printing and filing paper documents, managing data entry, waiting for software to install… Adopting cloud accounting packages such as Xero, Quickbooks Online, Zoho, and Wave has allowed many businesses to consign such time-consuming workplace procedures to the past.
And that means more emphasis on analytical, strategic, and creative skills. As founder of Xero, Rod Drury, says: “We are going to do everything we can to reduce low value accounting work to free up time for people to drive growth strategies for their business customers. And we are unapologetic about that.”
Reducing the time spent on menial tasks is far from the only benefit of subscription-based cloud systems, though. Wide-ranging integration between systems also means financial data can easily be accessed by other stakeholders, streamlining decision making and reporting, and reinforcing the relationships between accountants and their clients.
For newly qualified accountants, an understanding of the different cloud accountancy packages is therefore likely to be high on potential employers’ wish lists. So, to increase your chances of being offered a great job at the end of your AAT studies, it’s worth taking any opportunities to research and compare the various software packages available and doing your best to stay abreast of new developments in this area.
2
Swot up on cybersecurity
Confidentiality has always been an important part of an accountant’s role. So, it should come as no surprise that the ever-present threat of a data security breach is the stuff of nightmares for all those working in the financial sector. In fact, it’s probably the main reason some organisations continue to resist moving over to cloud accounting.
Cloud Service Providers (CSPs) argue that data is safer in the cloud because storing it this way circumvents other risks, such as hardware failure, human error or file corruption using non-cloud systems. But they also know that one of their most important selling points is having cybersecurity measures robust enough to keep sensitive data safe and stored in accordance with GDPR regulations.
And as the risks and regulations involved are only likely to increase over time, accountants of the future can expect to have to work closely with IT teams to both create, develop, and implement internal cybersecurity policies, and to plan for how to react should a cyberattack occur. And that will make experience and/or expertise in cybersecurity even more in demand than it is today.
"Accountants of the future can expect to have to work closely with IT teams to both create, develop, and implement internal cybersecurity policies"
3
Consider green finance
Cloud computing might not seem an environmental threat at first glance. But the vast data storage centres required have been attracting negative attention recently because of the greenhouse gas emissions they create.
This could become a important barrier for businesses doing their best to move towards net zero, especially as it’s not always easy for the companies using these centres as data storage facilities to work out just how big a problem they face.
“While all cloud providers have sustainability initiatives in place, their progress in meeting carbon reduction goals and strategies for achieving net zero carbon emissions varies wildly… making it difficult for organizations to fully and accurately assess true sustainability impacts of their cloud usage,” says Ed Anderson, research vice president at Gartner.
So-called Green Finance roles are already growing in number thanks to the industry-wide drive to keep up to date with the latest guidelines for Environmental, Social and Governance (ESG) reporting. And current indications are that professionals who can stay abreast of ESG reporting requirements and use the cloud to manage certification and compliance documentation will continue to be in high demand in years to come.
4
Prioritise privacy and transparency
Cloud accounting is making financial reporting significantly more transparent. But there’s a fine line between privacy and transparency in accounting. And this looks set to remain a hot topic as the government rolls out its Making Tax Digital policy.
As the situation evolves, users – accountants included – will almost certainly need to navigate increasingly complex compliance regulations, while also continuing to keep a close eye on the ethical implications for both their own businesses and those of their clients.
As Adrian Bradley, Head of Cloud at KPMG, says: “Cloud users will need to get better at managing the ethical implications of AI and instilling the necessary controls. That will mean understanding the risk, regulatory, and governance implications from the outset.”
Students who take an interest in compliance and ethical decision making should therefore be well placed to add value to teams across the finance industry both now and in the future; it’s definitely another string to consider adding to your bow.
ADAPT AND CONQUER
Cloud accounting skills for your future
Cloud accounting has changed the profession dramatically, particularly in the years since Covid-19. But this is far from the end of the journey; the technological revolution will undoubtedly continue to transform the financial sector over the coming years.
As the business world gets to grips with advances such as AI, Web 3.0 and the Metaverse, forward-thinking finance professionals are therefore already pondering how to harness the efficiency benefits of the next new tech, while continuing to protect their professional integrity at the same time.
Students who take a similar approach to staying up to date with the often-blistering pace of technological change will find it easy to stay relevant, even in today’s fast-changing job market.
Cloud accounting skills we believe will help you to get ahead during your career as a finance professional include:
· Knowledge of cloud accounting software solutions such as Xero, Quickbooks Online, Zoho, and Wave
· A willingness to move with the times and adapt to innovative new tech as it comes online
· An understanding of how cloud technology can help with processes such as Enterprise Resource Planning and inventory management
· An ability to use cloud accounting data to add value and drive profitability
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