What is coming for accountants

Electronic invoices, electronic accounting books, robotization, and artificial intelligence are concepts that clearly indicate that the days of traditional accountants are numbered, as their bookkeeping and recording activities have already been replaced by technology and artificial intelligence.

On the other hand, the Peruvian Tax Authority (SUNAT) has progressively implemented the Integrated Electronic Records System (Sistema Integrado de Registros Electrónicos or SIRE in Spanish) through which, in simple words and given that almost everything is electronic now, SUNAT will prepare preliminary Sales and Purchase Books where taxpayers must record the payment vouchers that were not booked by SUNAT and/or must correct any errors; i.e., the entries required to calculate the monthly VAT payable have already been booked by SUNAT practically for self-assessment purposes. We can say goodbye to using Excel, recording tax entries in accounting systems, adapting ERP records for local purposes, etc. Thus, for the time being, SUNAT has become a free provider to help companies settle their monthly VAT obligations.

It is clear that the accountant’s recurring activities must substantially change, and such change demands effort, training and, above all, a lot of vision of the environment and an understanding of market needs and economic trends. This is indeed a challenge.

It is in this context where Big Data appears as a resource that represents an opportunity for accountants. Some of the ways Big Data can be applied in accounting include the following:

• Advanced Financial Analysis, which allows analyzing large sets of financial data in real time. This allows identifying patterns, trends, and relationships between financial variables, providing deeper insight into financial performance and profitability.
• Fraud and risk reduction: Big Data and data analysis allow detecting suspicious patterns and anomalous behavior in financial transactions. This helps organizations prevent fraud and manage risks more effectively.
• Supply Chain Management: At the companies that handle large volumes of inventories and transactions, Big Data can help optimize supply chain management, reducing costs and improving efficiency.
• Predictive accounting and forecasting: Big Data analysis allows creating more accurate predictive models to forecast revenues, expenses, and other important financial metrics.

It is time to change our mindset and move from the desk to the board room, to go from reporting what happened to trying to predict what might happen. If we do not make this change, our days will be numbered.