What Data Can Do for You

BY NATALIE ROONEY

Data and data jobs have been heralded as the new frontier, bringing transformation to the accounting profession. The World Economic Forum recently named data analysts and data scientists as the most in-demand positions across all industries.

Kacee Johnson, vice president of strategy and innovation for CPA.com, keeps a pulse on how accounting firms are adopting emerging technologies and the role that data plays in various practice areas.

“In speaking with firms, the trend of hiring data analysts is becoming more popular within firms,” Johnson says. There are distinctions in the roles of data analysts and data scientists. While a data analyst may spend more time on routine analysis, regularly providing reports, a data scientist may design the way in which data is stored, manipulated, and analyzed. Simply put, a data analyst makes sense of existing data, whereas a data scientist works on new ways to capture and analyze the data that analysts use.

“Firms are employing more data analytics talent so they can understand the already-processed data,” Johnson says. “Once the information is available, people need to know how to access, organize, read, and analyze it for their various business intelligence needs.”

Using The Data

Johnson outlines three practice areas where the accounting profession is using artificial intelligence (AI) to maximize the potential of their data:

1. AUDIT: New solutions enable the use and analysis of full data sets, not just a sample.

2. RISK AND FRAUD: Analysis can detect potential fraud by spotting anomalies or

“Today’s graduates need specialized skills such as data, cloud-based accounting, processes, programming software, and managing people. That’s where we’re headed,” Bontrager says, noting that students are looking closely at career options in industry rather than public accounting. “They enjoy accounting, math, and science, but don’t see themselves in a firm environment. They want to be in an industry that aligns with their interests.” deviations from “normal” behavior or patterns presented in the data.

3. CONSULTANCY/ADVISORY: Thanks to AI, firms and organizations can understand and make sense of numbers for clients, both predictive and prescriptive, and it’s happening across industries.

“Organizations are using data to understand their customers,” Johnson says. “They’re building out client personas to reveal the true nature of opportunities and trends, and becoming more sophisticated in their business development functions. Data offers a way to become more valued advisors. You can tell clients, ‘This is what we see, what we think is happening, and what will happen if you continue on this trend.’”

Johnson says while data offers opportunities to clients, it’s also beneficial internally. “We can absolutely use this data to grow our own organizations.”

Now Hiring

At the University of Denver’s Daniels Career Services office, Bob Kumagai, executive director of career services, and Jessica Bontrager, assistant director of career services, are keeping a close eye on hiring trends.

“Firms, specifically the Big 4, have told us consistently over the last three to four years that they see the need for higher data skills amongst their hires,” Kumagai says. “Data skills continue to increase in value.”

The DU School of Accountancy has been adjusting its curriculum to include more technical, data-intensive courses. A new master’s degree adjacent to the existing master of accountancy (MAcc) program also addresses the demand for data-savvy graduates. “It’s all in response to what firms are telling us, which is that data is still a big deal,” Kumagai says.

Bontrager says there’s good news for the profession: research shows those who go on to earn the CPA designation not only demonstrate their expertise and skills, but also enjoy a competitive edge and higher pay. “They have a more niche fit and higher job satisfaction as well,” she says. “It has always been a huge plus for accounting majors to pursue their CPA licenses, but even more so with regard to the industry. We see a continuing stable industry with the expectation to have more specialized skills such as AI.”

The topic of salaries continues to be at the forefront of conversations. “Students have expressed frustration about why salaries haven’t been adjusted for first-year MAcc students,” Kumagai says. “We continue to see leakage from accounting into other majors like finance or business analytics because students look at the starting salaries and wonder what the deal is.”

Data Is A Necessity

So, is data an absolute necessity? “I would say yes, 100%,” Johnson says. “Data is the future.” Smaller organizations that can’t afford to bring on a full-time person to do the work shouldn’t despair; technology is here to help.

“There are so many solutions available to serve as your data analyst,” she says. “You still have to understand what the data means, but software is solving a lot of the heavy lift and rote tasks for accounting professionals.”

Johnson encourages firms to learn about solutions that optimize available data, even though these solutions may seem daunting and involve unfamiliar terms such as “data lakes” and “data warehouses.”

“I read an interesting analogy: A data lake is like a rocket’s engine, and all the data is your fuel that keeps it going,” she says. “Everyone has a lot of work on their hands, and that can make it tough to prioritize those innovative initiatives. But in the future it makes you that much more valuable to your clients. Carve out time to lean into the technology and talent.”

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