3E Accounting Suggests Malaysian Accounting Firms to Embrace More Technology to Be Competitive in Today’s Fast-changing Market
3E Accounting was honoured to be featured in ACCA Global April 2019 write-up on “Finance Professionals Must Understand the Power of Technology”. Read more in PDF.
Technological has reshaped our lives in many aspects, including our daily routines, as well as our workplace. The evolving technology landscape has, in fact, transformed our task-oriented jobs to a newly automated workforce. The dynamic shift in technology has led to productivity optimization in many industries, including the accounting industry. Thanks to the technology evolution, the accounting profession is currently undergoing monumental transformation with newer accounting technologies and advanced accounting software programs. While accounting processes are becoming more automated, the accountant’s role is also evolving to that of a business advisor.
Embracing Changes in Technology Will Revolutionize an Accounting Firm
In Malaysia, most accountancy firms are joining the latest waves of technology adaptation by incorporating technology in their daily operations. The rapid tech changes are re-introducing a completely new level of accessibility, efficiency, and adaptability, which has, in turn, improve business growth and cash flow, as well as increase accuracies in the accounting work. Having said that, the recent MIA digital technology blueprint by the Malaysian Institute of Accountants’ (MIA) has revealed the penetration and adaptation of high-level technologies remain low among Malaysian accounting firms.
According to the report, 92% of respondents have occasionally or frequently used accounting software. Meanwhile, the adaption rate of other technologies such as data analytics, Fintech and Artificial Intelligence (AI) was below 25%. The report has uncovered that there were accountants who were uncomfortable to embrace changes in terms of technology, despite the rising interest in technology within the accounting industry.
Lawrence Chai, the founder and partner at 3E Accounting, commented that inadequate knowledge on technologies is a major showstopper of the technology adaptation. He added that many practitioners are not aware of such tools or technologies in the market, let alone incorporating the technology in their business operations.
Though it is a known fact that accountants of Generation Y are more tech-savvy and inclined to adopt new technologies as compared with senior accountants, Lawrence believed that management’s attitude towards technology evolution is more important than the age factor. He commented that it is more about the mindset of the top management but has nothing to do with the age factor.
Lawrence has also debunked the misconception that only the bigger firms can adopt and afford advanced technology. In fact, smaller firms can access high-level accounting technologies, e.g. accounting software that provides data analytics as well as AI capabilities. In short, embracing changes in technology will revolutionize an accounting firm, and keep it competitive in today’s fast-changing market.