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The Future of Accounting and Business in the Digital Age

Nowadays, the role of accounting has changed, from mere records or book-keeping to competitive advantage. Therefore, accounting was not spared from technological developments. This role change will have an impact on the business world. In addition, the role of accounting in the future as well as the transformation of the accounting profession should be noted.

This is the background of the hosting of the 3 rdParahyangan International Accounting and Business Conference (PIABC) by Accounting Study Program of Parahyangan Catholic University (Unpar) in cooperation with the Association of Chartered Certified Accountants (ACCA). The event, held on 4-5 May 2017 at Sheraton Hotel Bandung, was entitled “The Future of Accounting and Business in Rapid Development of Information Technology”.

The 3 rd PIABC consists of a number of sessions, namely general seminars, panel discussions, special seminars for students, and paper presentations . The Keynote speaker for this event was Kabid Persandian dan Informatika Diskominfo (Head of Signal and Informatics of the office of Communication and Information) Bandung Dian Dhian, representing the Mayor of Bandung Ridwan Kamil who was unable to attend.

Invited speakers include ISACA Indonesia President Isnaeni Achdiat, Director of Software Asset Management and Compliance Microsoft Indonesia Sudimin Mina, CFO Datalogic Asia Pacific, Executive Committee, and Council of the Institute of Singapore Chartered Accountant Vincent Lim, Faculty of Accounting Universiti Teknologi MARA (UITM) Prof. Madya Mahfudzah Mohamed, ACCA Leo Lee Deputy President, IFAC Board Member Ahmadi Hadibroto, and Deloitte Indonesia Manager Abdiansyah Prahasto.

In the current era of information and technology, people are still not aware of the importance of risk management in cyberspace. Therefore, the 1st session of the seminar aimed at “Cyber ​​Risk Management” to provide insight to participants in managing risk in the cyber world. The development of information technology also affected the change of business model. In the pre-industrial revolution era, various jobs were done conventionally or manually. Entering the era of industrial revolution, human power began to be replaced by machines.

The Accountant professions that used to utilize the single entry book-keeping method switched to double entry book-keeping . Therefore, clients need information on income and wealth changes over a certain period. Meanwhile, single entry book-keeping method only provides asset and debt information at any given moment, so the client does not think about the amount of change in wealth and causes. The discovery of computers in 1955 had an impact on the development of double entry book-keeping because the time and cost of information storage and processing decreased significantly.

The next session discussed changes in business model due to technological developments, namely six business models in the future as well as the role of the accounting profession in dealing with these changes. Participants are invited to understand more about the current trends in technology that impact the accounting profession in the future in the third session. The speakers described five trends in the world of information technology today that are relevant to the accounting profession.

The panel discussion was held after three seminar sessions. The potential of technology to replace the role of the accounting profession is just a matter of time. Thus, the role of the accountant will shift to be strategic and consultative. Accountants need to have  the right mind and skill‘ as evidenced by certification as well as the right success tools, such as being technologically savvy, in order to survive in competition.

The special students’ seminar session entitled “Generation Next: What It Takes to Become Accountants of the Future” discussed key attributes, expectations, and aspirations of the young generation in accounting and finance. Some of the material discussed was taken from a study conducted by ACCA.

In addition, seminars and paper presentations for academicians were held on the second day. These seminar sessions provide some input for publishing scientific papers in international journals. Meanwhile, paper presentations are held in several parallel classes.

Future challenges are not merely about competition among accountants in the national scope, but also ASEAN and globally. In addition, there is the shifting the role of the accounting profession due to the development of information technology. Accountants today must prepare themselves well in the face of various changes that will occur.  Technological savvy is one of the key challenges of facing the future.

 

Source: KOMPAS – Griya Ilmu (Tuesday, 30 May 2017)

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