Table of Contents

1.0 Executive Summary 2

2.0 Introduction 3

3.0 Factors affecting the accounting profession 3

    3.1     Complacency       3

3.2    Frustrations   4

3.3    Lack of automation services   4

    3.4   Emphasizing on the innovation…………………………………………………………………………………………………5

4.0 Factors likely to cause a positive difference in the accounting profession ……………………………………..5

     4.1    Better connectivity for the clients ………………………………………………………………………………………….6

     4.2    Data entry that is automated …………………………………………………………………………………………………6

     4.3    The growth in the Do-It-Yourself approach …………………………………………………………………………….7

     4.4    Powerful insights and machine learning……………………………………………………………………….…………8

     4.5    Specialization …………………………………………………………………………………………………………………………9

5.0 Accounting outlook earning capacity in the United States …………………………………………………………..10

6.0 Conclusion ………………………………………………………………………………………………………………………………….12

7.0 Recommendations ……………………………………………………………………………………………………………………..12

References ……………………………………………………………………………………………………………………………………….14

 

 

 

 

 

 

1.0 Executive Summary

The employment outlook in accounting for the next five years is perceived to be growing especially due to the development in technology, innovations and the demand for a stable economy. Accounting is the entry and the documentation including the analysis of the cash outflows and inflows. Accounting is the methodology of registering the transactions made, storing the financial records, performing the audits internally, reporting, analyzing and managing the financial records and also advising with regards to the tax system (Marino, 2014). Accountants spend most of their time handling a large number of financial data which is in raw form. A compilation of the same data is done and a presentation is made according to how it should be to the managers or the clients who possess little or no knowledge of accounting. Accounting is essential since it provides important information in terms of the resources which are available for a firm, how well to apply the resources through finances, and also the ultimate results of the resources and the finances used.

Majoring in accounting is very beneficial since there are very many opportunities which are open for a person who has majored in this profession. Courses in managerial accounting, financial, accounting methods and periods, practice and theoretical auditing, filing individual federal income tax, local taxation, business entities and many other courses are beneficial to accounting. Once one is equipped with the best tips for accounting, the employment outlook for any accounting professionals will increase the level of capability and also the type of accounting a person might be interested in studying (Reifschneider et al., 2015). One will have the professional capacity and capability of working in the service firms, non-profit organizations, corporations, government agencies, new and minor start-up business settings and any type of business that requires a person with the accounting skills. There is security in terms of the job offers since there is a high demand for persons with accounting skills.

2.0 Introduction

The development in terms of the growth in the economy, political class and science and technology has caused an increase in the level of accounting skills and specialization according to job specifications. Certain trends such as the specialization to a specified profession in accounting like taxation have caused the demand for the accountants to grow significantly over the years. Accounting is one of the professions where there has been an increase in the demand for accountants and people specializing in specific career choices (Reifschneider et al., 2015). However, accounting outlook faces various challenges that cause a difference in the field of accounting.  Over the previous decades, advancement in technology and the transformation in almost every aspect of a business such as marketing, web design, human resource, and management have led to the demand for advanced means and methods of accounting.

In the past, the accounting industry was faced with a lack of advancement and only using the outdated means when it comes to its formulation (Marino, 2014). The powerful new technology has advanced the level of accounting and therefore making the accounting to be a profession to consider. Complacency, frustrations, lack of the automated services and the emphasis on the innovations has all caused an immense disruption in the accounting profession. The challenges in accounting increase the need to have the accountants advanced in terms of making sure that they keep in line with the developments made.

3.0 Factors affecting the accounting profession

3.1     Complacency

Complacency is one of the major problems and a sign which signifies a change in the accounting profession. In every major or minor business, relying on the past events makes it look more of not adaptive to the trends and advancements in technology. The outside world from the business which is successful will always take a keen interest in wanting to know more of what the business is doing to succeed (Smith, 2017). If a business starts to use some of the strategies that it used in the past to succeed, the general world takes a valid interest and identifies ways and weaknesses to that business and similarly claim over the issue. An opportunity to pull down the business or else engage in making it rise is assured by the success of the business.

3.2    Frustrations

Frustration is also another factor that is affecting the current market trends and the diversification in accounting.  With the vendors now interested in joining the force in this field, customers will also become frustrated with the kind of services being offered by the specific business entities. Customers will always demand a better service and this increases the chances for the business to be faced with challenges (Reifschneider et al., 2015). This is specifically so because the vendors in the involved business do not have any alternatives and the only hope for improvement is too expensive and almost not available. These occasions present an opportunity for the outside world to grow in their curiosity and offer the services that the current business cannot offer.

3.3    Lack of automation services

In every sector of a business today, automation is very critical since it creates a chance for the business to grow and offer quick services. The manual form of operating a business is very expensive and the increase in the business requirements there is the need for an automation of the services. The growth of a business is highly dependent on the specific ways a business in running its internal services (Волот & Росохач, 2016). Automation is very important since it allows the business and the accounting techniques to be done accurately and precisely for the growth of the business. To reduce on the frustrations which have led to the loss of customers and also the available chances to improve on the business, automation is essential and critical in every sense.

3.4   Emphasizing on the innovation

When business starts to grow, there is the need to have an improvement in the technology and innovation. Large companies which have the capability to invent their own ways of innovations will respond quickly to the changes. This is the advantage of having a career that can assist a business to grow. In accounting, if the level of accounting is still very manual then the business entity is likely to be at it low in every sense. When the business has adopted the automated and the advanced methods of accounting, then there is a chance that the business will gradually increase in terms of the holding volumes in internal capacity (Волот & Росохач, 2016). Growth is essential to a business and this is due to the kind of internal services done to the business such as an increase in the level of accounting. When innovation takes place in the business, there is the possibility that there is a positive disruption in the business. Handling of accounts will now be enhanced and also the management of the accounts will now be increased. In the accounting industry, in the next five years, there will be a demand for advanced accounting and the available skilled personnel’s will have to get involved and get equipped with the latest technology.

4.0 Factors likely to cause a positive difference in the accounting profession

4.1    Better connectivity for the clients

The current world is all customer-oriented and the rate against which the customers are in need of quality service has increased drastically. The advancement in technology such as the cloud services, remote connections, internet, and the accountants will now have the capability to grow and connect to all the clients over the internet in a very successful manner. Most of the businesses have adopted these services in the accounting field and they have taken advantage of the available chances to successfully run the business (Boritz et al., 2013). Online connection to the customers and the business world is important to increase the convenience and the rate of working, therefore, increasing the earning capability of the business. Accounting industry will experience growth and diversification especially due to the need for customers and the clients to have better services. The level of services in the industry requires the business entities to have the possibility of handling and communicating to the customers at any time. This is a challenge currently since there are no reliable internet services and the businesses are not taking the initiative of improving their current state of technology (DRURY, 2013). Many businesses are very reluctant to adopt the new means of handling the accounting records and this has created a challenge for the businesses to perform accurate and timely recording of the accounts.

4.2    Data entry that is automated

Automation of the services especially the accounting services is very important and a driving factor to book keeping and in the general accounting. The known method of data entry that is manual has reduced significantly and this has lead to the adoption of automation in some of the business entities. Automatic import of data and the electronic transmission of the documents have allowed the businesses to grow significantly (Boritz et al., 2013). In the next five years, if the level of the account recording will be automated, there is a high chance that the business will improve in terms of the services it offers and the methodology used to earn revenues. Robust software solutions and the technical knowledge of the business have allowed the accounting industry to have the capability of deleting and entering data in a complete remote connection. Efficiency is improved and the business is able to use the available human capital completely in order to achieve the best results at the close of the day.

Data entry through automation will result in a change in the automation services and the workflows. Automation in many ways leads to major challenges which affect the business. Faster transmission and processing of information will ultimately lead to real time reporting and also timely providence of the financial results (Волот & Росохач, 2016). Improvement in terms of giving accurate information is created since there will be less human error due to automation of the services. Accounting is one of the crucial parts in the business and when there are errors in the system and the end results, there is the possibility of the business to run into losses and thereby give force information to the involved party. Having less accurate information is very risky since the business can overspend more than it can make making it lose out at the close of the period. The created automated services have the capability of having the business to grow especially due to the reduced costs and the order in which every magnitude affects the business. The reduced cost is as a result of having the business conducting timely and accurate data entry into the system. Storage of the information and data already in the system is also very important for future use.

4.3    The growth in the Do-It-Yourself approach

Accounting software’s is one of the major areas where the business has grown over the years. In the next five years accounting outlook is expected to grow to a very high level specifically due to the improvement and the level of handling any business. Accounting techniques and the career has also improved generally due to the availability of materials to assist in making the best from a minor concern. QuickBooks is one of the major inventions that have transformed the accounting sector (Волот & Росохач, 2016). Many small and large businesses are adopting the QuickBooks methodology which is located in the cloud to store and handle their mathematical concerns. Web tutorials, videos from the YouTube, search engines and webinars have increased the capability of the businesses and the interested parties to be able to access anything over the internet.

This knowledge has allowed the businesses to grow significantly and to greater levels in accounting and the needs for bookkeeping. The need to move the accounting records and techniques from the manual form to the online forms does not mean that the business will lay off all the available manpower in the business (Smith, 2017). The need to have the accounting records improved and significantly automated is to have the chance for the business to grow and avoid the minor errors with the aim of success. The software developed is cheap and very user friendly making it lead to a reduction in the amount of money an accountant can be worth in a month from the business.

4.4    Powerful insights and machine learning

Accountants have the capability of sorting out the data and produce a great deal of work and eventually based on the already known information, deliver a predictive insight about the business. As science and technology advances including the artificial intelligent as well as machine learning techniques, there is the possibility of the accountants to have an access to the insights in real time and which can be used in adding value to the clients and the business (Волот & Росохач, 2016). In the next five years, there is the possibility of the accounting techniques to be advanced to higher and greater levels which will similarly see the business rise above the normal levels. Every accountant will have the capacity to look into insight and the big data systems and have the capability of giving a clear outline about the business in the future. The ability to lay out the future of the business is based on the intelligence an accountant has that will assist in knowing what to do and what to conclude in any given data set.

4.5    Specialization

In every field of learning, there is the need for specialization in order to add on to the current knowledge and capability. Accounting is one of the fields where specialization is very important and which allows the personnel to have a variety of chances to serve as an accountant.  Capable customers and business owners are cutting down the cost of running businesses through choosing from the best available personnel’s. For example, from the social media field one can be able to filter and only see what is interesting to them and the content of the chosen data (Boritz et al., 2013). The users of the Smartphone’s have the capability of choosing what they want to view and the apps one wants to install to their systems.

In the field of accounting, specialization is taking its core and the over bundled packages are being replaced with enhanced and better services. Every business in the world wants to spend on the services that are essential such as the bookkeeping and accounting records which they need for the growth of the business. This requirement is now causing a change in the business world and in the accounting profession where each person now wants to specialize in the best means possible for making an impact in the business (Smith, 2017). Specialization is leading to the developers of the accounting software’s to adjust their prices and also the products they are offering in the market. Currently, adopting such services is very expensive compared to the manual methodology of the business. Modernization of the businesses and having every aspect of the business automated is very crucial in ensuring that the cost is reduced and the work load is made simpler through use of the latest technologies.

5.0 Accounting outlook earning capacity in the United States

The geographical location and the experience of a person largely determine the earning capacity of the person. There are some additional factors which will influence the level of compensation of an accounting opportunity such as the negotiating skills; company size and the type of industry a person want to work. Accountants in many cases are paid a considerable huge amount of money compared to other people who are in the same professional and with a similar education capability and requirements. The median annual wage of the accounting field in the year 2015 stood at $67,190. An average of at least 10 percent of the accountants including the auditors in the same year earned a total of at least $119 000 and above (DRURY, 2013). The job opportunity grew to above 11 percent and in the next five years the job opportunity levels is supposedly speculated to be increasing to a higher level of more than 25 percent. For example in a state like New York the level of accounting is considered to be on the rise from about 5 percent to about 12 percent and the earnings for an year has improved from $80 000 to more than $87 000. Montana is the best in terms of the performance from a level of $50 000 in the year 2014 to about $64 000 in the year 2017.

Over the past for years since the year 2014 to 2017, there has been growth in the earning capability of the accountants. In the next five years, the level of growth in the accounting field is suspected to be growing with a percentage of not less than 17 percent. The individuals who have the skills in CPA (certified public accounts) and a masters degree are considered to be at an advantage compared to other individuals who only hold the lower level of education in the accounting professions (DRURY, 2013). A person who has a CPA recognition certificate has a higher chance of landing a good job with a considerable good salary and the chances for having a promotion at the workplace is also very high. Accounting in the next five years is one of the careers many people should consider the growth in the economy and the diversification of the current businesses is on the rise.

In most businesses, the future promises and advancements in technology will require the current employees to advance their knowledge, especially in the CPA field. Managers and the heads of companies will now require accountants who are qualified and who have combined the knowledge of accounting and advanced certification by the public accounts (Marino, 2014). Handling of data and data entry is currently done manually but in a five years time, automation of services will cause a change in many areas of accounting. Having the records entered and arithmetically arranged by the responsible systems will allow the business to grow significantly.

Many accountants who are able to find their way up to the top of the organization they are employed increases the chances of them being paid high bonuses and also improved salaries. Top talents in the organizations are in high demand and this is due to the involved organizations looking for a cheaper and effective way of doing business (Boritz et al., 2013). The flooding accountants who do not have higher levels of educations such as the master’s qualifications are at a disadvantage since it will be hard for them to secure a job opportunity as accountants.

6.0 Conclusion

Employment outlook accounting is one of the major areas of considerations for individuals who have the urge to get higher returns and advantages in terms of monetary terms. In the field of accounting, the opportunities available for growth and advancements are many but there are also chances available when it comes to offering such services (Волот & Росохач, 2016). When one major with a degree in the accounting field, the chances are any and so is the monetary value. The economic factors of having the best knowledge and understanding in accounting are specific and according to the current trends.

7.0 Recommendation

The current trends and requirements to have a cheap and reliable source of running the businesses have created a chance for the organizations to make more revenues. Technological advancements in the field of accounting have enabled both the managers and the accountants to eliminate errors in the business. In the next five years, the economy of the United States is suspected to have grown similarly and this is highly attributed to the fact that accounting is taking shape in every business (Волот & Росохач, 2016). The years when fraud used to make the economy of a country to be at its lowest due to lack of accuracy is finally coming to an end. Individuals interested in creating an impact in the coming years should consider taking a profession that is mostly according to the accounting field. Certification of the accountants is also very important and therefore the needs to have the interested persons get the certificates timely with the knowledge and understanding of the current trends.      

 

 

 

 

 

 

 

 

 

 

References  

 

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DRURY, C. M. (2013). Management and cost accounting. Springer.

Hoyle, J. B., Schaefer, T., & Doupnik, T. (2015). Advanced accounting. McGraw Hill.

Marino, R. (2014). Introduction. In The Future BRICS (pp. 3-18). Palgrave Macmillan UK.

Reifschneider, D., Wascher, W., & Wilcox, D. (2015). Aggregate supply in the United States: recent developments and implications for the conduct of monetary policy. IMF Economic Review, 63(1), 71-109.

Smith, M. (2017). Research methods in accounting. Sage.

Trends, C., & Williamson, O. (2016). The Issue. Benefits, 615, 446-3303.

Vengosh, A., Jackson, R. B., Warner, N., Darrah, T. H., & Kondash, A. (2014). A critical review of the risks to water resources from unconventional shale gas development and hydraulic fracturing in the United States. Environmental science & technology, 48(15), 8334-8348.

Волот, О. І., & Росохач, О. В. (2016). Features of modern automated accounting information system and their using in USA companies.