Changing Role Of Chartered Accountants In Today’s VUCA & Digital World
Are you a Chartered Accountant (CA)? Let’s revisit what these professionals have been engaged into. Specialising into accounting, meeting compliances, taxation, auditing, forensic auditing, fraud management reporting, management and also an extension in handling investor relationships. These amongst many or several are the key focus areas that these professionals engage into. Mind it, this will intensify.
Historically, a CA is engaged as a decision maker or nudges that encircles a financial portfolio of an incumbent organization be it a start-up, a corporate house, NGO, Government Organisation, individual etc. But the rules in the digital space, sparked upon by the volatile, uncertain, complex and ambiguous (VUCA) business environment, has evolved several changes. Let us first hover around in brief on both components that have impacted the traditional role of a CA.
The digital space
With the introduction of industrial revolution 4.0, the governments started chartering programs and roadmaps for the implementation of a digital economy. Most professionals were unware and could not comprehend that this digital revolution was about to challenge the most fundamental aspect of business and transaction. This was transparency and on being concurrent. Thus, the most fundamental role exhibited by these traditional accountants was in jeopardy, taken over by the digital interface by computer based softwares. To many who were taken by a surprise, were technically unprepared and relying on the tradition competence that was about to be challenged in a big way. This digital world produced vast technological innovations in both products, services and processes attempting to extinct the unprepared professionals like what happened to the dinosaurs. The Darwins’ evolutionary model in biology applied here, the survival of the fittest.
But the question arises here, if all businesses and professional services were impacted then would CA will also be extinct? Perhaps no! Research says that CA like others high ended professionals need to be agile and adaptable in this ever-changing world, which will be the new slam experience. They need to manage creativity and innovation, with their functional role and horizons increasing. Their services are being enlarged to newer heights in terms of financial reporting, proficiency in analysis, fraud management and creative reporting systems. As a strategic business analyst they can counter more complex problems. Supported by their hawks’ eye to digital details they can incise-visualise what traditional computing cannot.
What is this VUCA world?
In a turbulent world that is extremely dynamic by nature, it is extremely difficult to study patters, especially when they don’t exist! The most recent covid19 pandemic was one, that casted shadows in all spheres of human life and professional, with no signs and previous patterns. This was a form of volatile, uncertain, complex and ambiguous (VUCA) event, rather a black swan, absolutely out of the blue. None was spared, neither any organisation nor any kind of organisational leadership.
The transition must happen now, with vision, understanding, clarity and adaptability replacing the acronym VUCA. These CA’s must now be able to create a better financial health and picture of their clients. They must engage and mentor their clients for being effective in financial health. They have an important role on being transparent and hence, a deeper understanding on the subject with the client is required. A deeper embracing is desired. The level of simplicity is required as the next step of attaining clarity. With increasing rules on transparency in daily work this is plausible. Being adaptable is the next frontier that brings with its self an increase in flexibility and agility. For this, promoting a consistency in business culture should be the mandate. One must be an advocate of innovation and remember, in the world of digital revolution most things are transparent and at the same time the literacy amongst the incumbents has increased. The CA’s will have to rise in purpose.
Crafting foresight
In their new role they will have to wear the band of a strategic leader, with a clear focus on transparent reporting, understanding and adopting technology with increased stakeholder relations. For this they need a foresight. Have you started thinking on these lines?
According to the Institute of Chartered Accountants of India, the accounting firms must assess the current level of Digital competency and calibrate their functioning to stay contemporary. They should become their integral part scaling to a Digital Competency Maturity Model. This is a part of foresight thinking.
Foresight engages an orientation for future-oriented awareness, enabling any business, in a VUCA environment. Hence, these CA’s must response rapidly and effectively in the digital market place. If one does not want to be fixated in the world of chaos and be extinct, it is time to embrace the change and accept the new medium of digitalisation as a new weapon in profession.
Dr. Manoj Joshi is a Fellow Institution of Engineers, Professor of Strategy, Entrepreneurship & Innovation, Director, Centre for VUCA Studies, Amity University, with 31+ years of experience in industry & research. He has authored 100+ articles, co-authored four books “VUCA in Start-ups”, “The VUCA Company”, “The VUCA Learner” and “Technology Business Incubators” and is also on the Editorial Board of several international refereed Journals. His main areas are capturing weak signals, VUCA and developing a foresight.
