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Industrial Revolution 4.0 - Opportunities and challenges for the accounting profession
Posted date 14/04/2018
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Posted date 14/04/2018
4.325 view
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“Industrial Revolution 4.0” is taking place in many countries around the world and is a phrase often mentioned in the media and social networks. The wave of industrial revolution 4.0 has created many “life-changing” opportunities for businesses if they can grasp this wave.
MSc. Vu Thi Mai NhiLecturer of Accounting Department
“Industrial Revolution 4.0” is taking place in many countries around the world and is a phrase that is often mentioned in the media and social networks. The wave of industrial revolution 4.0 has created many “life-changing” opportunities for businesses if they can grasp this wave. However, it also creates many challenges for those participating in the labor market.
Analyzing the impact of the 4.0 revolution on the finance - accounting department can be clearly seen in the following aspects:
- Data Analysis: If Excell was widely used and familiar before, the development of technology will create more modern tools and software.
- Automation Process : Most of the accountant's work is standardized records, automation technology can replace humans in many jobs.
- Cloud technology: Store information in real time 1 , large volume and not much limited in memory.
- Artificial Intelligence: Artificial intelligence can handle complex accounting operations (valuation, provisioning, etc.). This helps reduce human resources.
- Blockchain Technology 2 : Linking all data of the finance - accounting department together.
Be proactive in updating necessary and appropriate knowledge and skills (Excel skills, foreign languages, office computer skills, etc.). At the same time, review the company's current financial and accounting models to see if they are suitable for market trends as well as core business activities.
- The need to develop professional ethics skills is urgent. According to the survey data of the American Association of Fraud Investigators conducted in 114 countries, including Vietnam, fraud has a negative impact on the quality of financial statements and affects the decision-making of information users. The cause of this situation is due to loose control and lack of professional ethics of managers and accountants. Every accountant needs to clearly understand and remember the principles of professional ethics in all cases.
- Wireless network systems and digital data have narrowed the gap between countries. Accounting and Auditing are not limited to a single country but can be expanded worldwide. Career opportunities are expanded for those with professional competence and understanding of accounting systems in different countries.
- It is necessary to strengthen risk prevention measures. Enterprises need to establish Internal Control to prevent risks from harming the ethics of accounting and auditing. This helps accountants and enterprises protect themselves from the intervention of forces outside the enterprise.
- The role of management accounting needs to be given more attention, especially in planning and managing cash flow. Accountants need to be good not only at financial accounting but also at management accounting to be able to advise those in management positions.
Faced with the changes of the 4.0 industrial revolution, accountants, more than anyone else, must change to keep up with technological trends and meet the requirements of the accounting profession.
REFERENCES
REFERENCES
- Ministry of Finance, Professional Ethics Standards for Accounting and Auditing, (2015), issued with Circular 70/2015/TT-BTC dated May 8, 2015.
- “The role of management accounting in listed companies and applications of management accounting in business operations”, HOSE, (2017)
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