Digital Transformation of Accounting Profession:  Post Covid-19 era

Zairul Nurshazana Zainuddin; Mahfuzah Ahmad; Nurul Ezhawati Abdul Latif; Faizal Mohamed Yusof; Suzana Sulaiman

doi:10.21834/ebpj.v7iSI8.3925

Authors

Zairul Nurshazana Zainuddin Faculty of Accountancy, Universiti Teknologi MARA, UiTM Shah Alam, 40450 Shah Alam, Selangor, Malaysia
Mahfuzah Ahmad Faculty of Accountancy, Universiti Teknologi MARA, Perak Branch, Tapah Campus, 35400 Tapah Road, Perak, Malaysia
Nurul Ezhawati Abdul Latif Faculty of Accountancy, Universiti Teknologi MARA, UiTM Shah Alam, 40450 Shah Alam, Selangor, Malaysia
Faizal Mohamed Yusof Faculty of Accountancy, Universiti Teknologi MARA, UiTM Shah Alam, 40450 Shah Alam, Selangor, Malaysia
Suzana Sulaiman Faculty of Accountancy, Universiti Teknologi MARA, UiTM Shah Alam, 40450 Shah Alam, Selangor, Malaysia

DOI:

https://doi.org/10.21834/ebpj.v7iSI8.3925

Keywords:

Digital Skills, Critical Thinking, Accounting Profession, Covid-19, Transformation

Abstract

The accounting profession faces significant challenges and noticeable changes due to the COVID-19 pandemic. The rising demand for digital talent and the need to ensure critical thinking skills are applied in making decisions have become the main challenges for accountants nowadays. A drastic change from the official site to working from home due to lockdown is an issue to be discussed. Therefore, based on case studies, this paper aims to discuss the effects of COVID-19 on the accounting profession. The selection of the case studies is based on the company awarded as Best Employer and Most Attractive Graduate Employers to Work in Malaysia in recent years. By focusing on the importance of digital and critical thinking, a framework is developed to show the transformation of the accounting profession over the last 50 years and future insights for the accounting talent in the current context. The findings show that the Accountant's traditional role of preparing a complete set of accounts is still vital and relevant. However, accountants need to equip themselves with digital and critical thinking skills to become future-fit accountants in the near future, especially in the post-COVID-19 era.

References

Association of Chartered Certified Accountants. (2016). Drivers of change and future skills. https://www.accaglobal.com/content/dam/members-beta/docs/ea-patf-drivers-of-change-and-future-skills.pdf

Association of Chartered Certified Accountants. (2019). Accounting for Cryptocurrencies. https://www.accaglobal.com/in/en/student/exam-support-resources/professional-exams-study-resources/strategic-business-reporting/technical-articles/cryptocurrencies.html

Baldvinsdottir, G., Burns, J., Nørreklit, H., & Scapens, R. W. (2009). The image of accountants: from bean counters to extreme accountants. Accounting, Auditing & Accountability Journal.

Cleyle, S., Partridge, H., & Hallam, G. (2006). Educating the Millennial Generation for evidence based information practice [Article]. Library Hi Tech, 24(3), 400-419. https://doi.org/10.1108/07378830610692163

Cooper, P., & Dart, E. (2009). Change in the management accountant’s role: drivers and diversity.

Eng, A. C. (2018). Tomorrow's Management Accountants. Strategic Finance, 99(7), 6-7.

Frand, J. L. (2000). The information-age mindset changes in students and implications for higher education. Educause review, 35, 14-25.

Grimes, R. (2017). The Changing Face of the Accountancy Profession. IFAC. https://www.ifac.org/knowledge-gateway/preparing-future-ready-professionals/discussion/changing-face-accountancy-profession

Hackett, D. (2020). Corporate Reporting During a Pandemic. CIMA. https://www.cimaglobal.com/Members/Insights/2020-CIMA-Insights/Corporate-reporting-during-a-pandemic/

Helsper, E. J., Scheider, L., van Deursen, A. J., & van Laar, E. (2020). The youth Digital Skills Indicator: Report on the conceptualisation and development of the digital skills measure.

Human Resources Professionals Association. (2016). HR & Millennials: Insights Into Your New Human Capital. A White Paper by the Human Resources Professionals Association. HRPA. https://hrpa.s3.amazonaws.com/uploads/2020/10/HRPA-Millennials-Report-20161122.pdf

International Federation of Accountants. (2019). Future-fit Accountants: CFO & Finance Function Roles For The Next Decade. IFAC. https://www.ifac.org/knowledge-gateway/preparing-future-ready-professionals/publications/future-fit-accountants-roles-next-decade

International Telecommunication Union Academy. (2020). Digital Skills Insights 2020. https://academy.itu.int/index.php/main-activities/research-publications/digital-skills-insights/digital-skills-insights-2020

Investopedia. (2021). Gig Economy. https://www.investopedia.com/terms/g/gig-economy.asp

Islam, M. A. (2017). Future of accounting profession: Three major changes and implications for teaching and research. Business Reporting, International Federation of Accountants (IFAC).

Ismail, L. H. (2020). Kelestarian Pendidikan dan Kebolehpasaran Graduan Pasca Covid-19. https://news.uthm.edu.my/ms/2020/06/kelestarian-pendidikan-dan-kebolehpasaran-graduan-pasca-covid-19/

Jamsheela, O. (2021). A Study of the Correlation between the Dates of the First Covid Case and the First Covid Death of 25 Selected Countries to know the Virulence of the Covid-19 in Different Tropical Conditions. Ethics, Medicine and Public Health, 19, 100707. https://doi.org/https://doi.org/10.1016/j.jemep.2021.100707

Lee, J., Kao, H. A., & Yang, S. (2014). Service innovation and smart analytics for Industry 4.0 and big data environment. Procedia CIRP,

Malaysian Institute of Accountants. (2020). The Financial Reporting Implications of COVID-19. https://www.at-mia.my/2020/04/17/the-financial-reporting-implications-of-covid-19/

Marriott, P., & Marriott, N. (2003). Are we turning them on? A longitudinal study of undergraduate accounting students' attitudes towards accounting as a profession. Accounting education, 12(2), 113-133.

Motyer, C. (2020). 8 Essential Skills ACCA Graduates Need in 2021. https://blog.learnsignal.com/blog/8-essential-skills-acca-students-will-need-in-2021

Ramli, A. (2020). Digital Talent a Must to Surmount Covid-19 Crisis. MIA. https://www.at-mia.my/2020/04/15/digital-talent-a-must-to-surmount-covid-19-crisis/

Rughani, S. (2016). A Relevant Accountancy Profession. IFAC. https://www.ifac.org/news-events/2016-12/relevant-accountancy-profession

Ruttanaporn, S. (2001). Management accounting practices of large corporations in Thailand. Working Paper Series, Faculty of Commerce and Accountancy, Culalongkorn University., 2(1), 55-70.

Sani, R. (2017). Riding the Industry 4.0 wave. New Straits Times https://www.nst.com.my/education/2017/08/268377/riding-industry-40-wave#:~:text=Requirements%20for%20multi%2Dskilled%20and,%2Dto%2Dbe%20created%20ones.

Spence, P. (2020). Changing with the times: Work in the age of COVID-19. CIMA. https://www.cimaglobal.com/Members/Insights/2020-CIMA-Insights/Changing-with-the-times-Work-in-the-age-of-COVID19/

Stanway, D. (2021). First COVID-19 case could have emerged in China in Oct 2019 - study. Reuters. https://www.reuters.com/world/china/first-covid-19-case-could-have-hit-china-oct-2019-study-2021-06-25/

Talha, M., Raja, J. B., Seetharaman, A., & Jain, S. P. (2010). A new look at management accounting [Article]. Journal of Applied Business Research, 26(4), 83-96. https://doi.org/10.19030/jabr.v26i4.309

Tallent, R. J., & Barnes, J. J. (2015). Think Bubbles and Socrates: Teaching Critical Thinking to Millennials in Public Relations Classes. Universal Journal of Educational Research, 3(7), 435-441.

The Star. (2019). Accountants in digital age. https://www.thestar.com.my/news/education/2019/06/16/accountants-in-digital-age

Thomson, J. (2016). The Management Accounting Profession Will Double by 2024 - Are We Prepared? Accounting Today. https://www.accountingtoday.com/news/the-management-accounting-profession-will-double-by-2024-are-we-prepared

van Deursen, A. J. A. M., van der Zeeuw, A., de Boer, P., Jansen, G., & van Rompay, T. (2021). Digital inequalities in the Internet of Things: differences in attitudes, material