The digital accountant - ACCA Global

1 The digital accountant : digital skills in a transformed world 2020 Association of Chartered Certified accountants March 2020 About ACCA ACCA (the Association of Chartered Certified accountants ) is the Global body for professional accountants , offering business -relevant, first-choice qualifications to people of application, ability and ambition around the world who seek a rewarding career in accountancy, finance and management. ACCA supports its 219,000 members and 527,000 students (including affiliates) in 179 countries, helping them to develop successful careers in accounting and business , with the skills required by employers. ACCA works through a network of 110 offices and centres and 7,571 Approved Employers worldwide, and 328 approved learning providers who provide high standards of learning and development.

2 Through its public interest remit, ACCA promotes appropriate regulation of accounting and conducts relevant research to ensure accountancy continues to grow in reputation and has introduced major innovations to its flagship qualification to ensure its members and future members continue to be the most valued, up to date and sought-after accountancy professionals globally. Founded in 1904, ACCA has consistently held unique core values: opportunity, diversity, innovation, integrity and accountability. More information is here: digital accountant : digital skills in a transformed worldAbout this reportThis report considers the implications of the digital quotient, one of the seven quotients defined by ACCA in 2016, in the context of digitalisation of organisations.

3 A lot has been written about digital transformation and how that is important for future organisational growth. In that context, how much should accountancy and finance professionals know? What skills do they have and what skills do they need to develop?The insights in this report are based upon interviews and roundtables conducted with ACCA members and other interested parties. The report also draws upon the results of a survey of 4,264 accountancy and finance professionals, including ACCA members, affiliates and students, conducted in November United Kingdom 488 Russia 260 Malaysia 235 Pakistan 198 Brazil 174 Nigeria 137 Mauritius 125 Ukraine 105 Zimbabwe 105 Other 2,437 Mainly in-practice 32% (such as external audit, attestation, advisory / consulting, tax) Mainly in- business 68% (such as working in a finance team or providing finance services across the organisation, including internal audit and risk-management functions)

4 20 and under 47 21 25 625 26 30 920 31 35 849 36 40 693 41 45 495 46 50 296 51 55 165 56 55 101 61 55 39 66 55 15 71+ 134 ForewordThe digital agenda is transforming our lives in many ways. The ways in which we both interact and conduct business are radically different from those in the environment of ten, and perhaps even five, years ago. The ability to navigate these transitions is fundamental to continuing to be successful as accountancy and finance professionals. To ensure that professional accountants are effective, they need to broaden their knowledge base from the application focus that they may traditionally have had, to the understanding of how technology and data create value for organisations.

5 ACCA members have a clear opportunity to play a significant role in achieving that is a transformative journey: one where the pace of change means that professional accountants need to invest continually in their own development across a broad range of technology areas. This report explores the breadth and depth of these areas. It gives insight into how the combination of traditional accountancy and finance skills, and an ethical approach, together with digital knowledge and business acumen, puts accountancy and finance professionals in the right place to fulfil the potential this opportunity s Certificate in digital Innovation for Finance provides one opportunity for members to develop these broader technology skills.

6 The curriculum aligns closely to the drivers discussed in this report and provides a sound basis from which to continue to develop your skills. The focus on emerging technologies, future disruptors and digital transformation supports our digital thing is certain, digitalisation of our workplaces will continue apace. Either we are part of that journey or we run the risk of being left behind. We need to make sure that, as individuals and as professionals, we seize the Brand, chief executive, ACCAC ontentsExecutive summary 6 Introduction 71.

7 The digital challenge 9 Why the digital journey matters? 9 Impact of digital on the workplace 10 Changing business models 12 digital skills are essential 132. Defining our digital skills 18 The digital quotient 19 Evaluating the digital quotient 22 Existing and emerging technologies 23 digital capabilities 24 digital practice 25 Strategy 26 Overall comparison 273. The digital future now 28 digital is a way of life 29 digital in the business context 29 The evolving nature of digital in the finance workplace 30 Practical finance integration the digital core 31 Importance of data 32 Impact of digital skills on those in-practice 33 Understanding the digital strategy 344.

8 Embracing digital becoming a digital citizen 36 The continuous learning challenge 37 The challenge of understanding the business 40 Seizing the developmental opportunities 42 The importance of the storytelling narrative 43 The generational divide? 43 Developing your digital quotient 445. Conclusion 47 Appendix 1: Definition of ACCA professional quotients 49 Acknowledgements 50 References 51 Glossary 526 Executive summaryDigital is a way of life.

9 Almost everything, if not everything, that we do involves some form of interaction with technology. Similarly, we leave a data footprint. While this technology is not new, the pace of change that we are encountering is supplemented this with roundtables and results indicate that, as a profession, we are comfortable with older digital technologies, such as the spreadsheet and enterprise resource planning (ERP) applications. When considering emerging technologies, such as blockchain and the use of coding, though, we are often somewhat lacking in understanding and ambition. Fundamental to all this, however, is being able to speak the language of technology and appreciate how it now drives the business model.

10 If we focus our digital acumen solely on applications and tools, we ignore the fundamental business unique technical and ethical perspective that is developed through our qualification and on-going development, applied to a deep understanding of the business model that we learn from on-the-job experiences, positions us as professionals in a fast-moving world where commercial advantage is gained in moments not years, and we use our inherent business skills to raise questions and ensure that the organisation is doing the right professionals appreciate the digital landscape, are familiar with existing and emerging technologies and how these deliver strategic advantage.