Accounting practice in the new millennium: is accounting education ready to meet the challenge

Abstract

As the new century and millennium get underway it is appropriate to reflect upon, and plan for, expected changes in accounting practice and the implications of these changes for accounting education. This paper covers three broad topics. These are: • the future of business and accounting practice—a brief review of the predictions about how we will do business in the new century seems a necessary precursor to a discussion of changes in education; • in the light of expected changes in business, what skills will be required by the accountants of the future?; and • what are the implications for accounting education? Expected trends in business practice and the necessary skill set of accountants are reviewed in the light of recent literature from the United Kingdom, United States and Australia. These trends suggest that so-called ‘compliance’ work will form a diminished portion of accounting firms' revenues as technology means that even small businesses become more empowered with respect to their record-keeping needs. On the other hand, the main growth areas of accounting practice appear to lie in the fields of business advisory services. As such, future accountants will take on the role of ‘knowledge’ workers. Although a command of technology will be an important component of an accountant's skill set, of more significance will be skills in analysis, innovative problem solving, communication and client relations. Accounting educators need to anticipate the expected shift in accountants' skills and develop courses and teaching methods that are far more interdisciplinary and analytical in their orientation. This paper explores some ways in which this might be achieved and some of the challenges to effecting change in accounting education that will have to be overcome.