Top 3 Accounting Myths Debunked: Learn What’s Changed and Where the Industry is Headed

TOP 3 ACCOUNTING MYTHS DEBUNKED ACCOUNTING IS PROBABLY NOT WHAT YOU THINK IT IS. LEARN WHAT’S CHANGED AND WHERE THE INDUSTRY IS HEADED.

TOP 3 ACCOUNTING MYTHS DEBUNKED ACCOUNTING IS PROBABLY NOT WHAT YOU THINK IT IS. LEARN WHAT’S CHANGED AND WHERE THE INDUSTRY IS HEADED.

By Michael F. Peters, PhD Chair, Accounting & Information Systems and the Alvin A. Clay Professor of Accounting Villanova School of Business For the past several years, the business world has undergone a period of unprecedented rapid change.

The pandemic further accelerated the pace of change, as organizations adapted to new ways of doing business. It seems every day we are hearing new stories about how the digital revolution and, specifically, areas like artificial intelligence and machine learning are changing our world.

I have nearly 30 years of professional and academic experience in accounting and it’s safe to say that the industry is nothing like it was when I first entered the field. At the Villanova School of Business (VSB), as we prepare our students for the current – and future – business environment, we also tackle some outdated notions about accounting.

Here are the top three accounting myths that exist today:

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MYTH #1: Accounting is a boring, isolating desk job that mainly involves number-crunching.

REALITY: Accounting is not an occupation but rather a multi-faceted skill set.

Virtually every aspect of business has accounting

On any given day, an accountant may be called

implications. Each business transaction has

upon to utilize any combination of these skills.

a corresponding effect on an organization’s performance and overall financial health;

Accountants are invaluable members of an organization who need to understand the different

therefore, individuals in any business field need to understand the basics of accounting and have foundational accounting skills.

processes that come together to make an organization run effectively: the relationships and interdependencies between functions, how business

The continued adoption and integration of

transactions result in accounting entries, and the

technology into the accounting field, particularly

associated risk and internal control requirements

through artificial intelligence and process

of each business. This broad understanding, with

automation, means that today’s accountants need

accounting at the foundation, sets up students and

– and are expected – to have a much broader

professionals with accounting skills to contribute

array of skill sets than ever. This includes diverse

to an organization in many unique ways.

business skills such as proficiency in data, analytics, technology, business ethics, financial analysis, and project management. Equally important are qualitative skills such as leadership, communication, teamwork, critical thinking and problem solving.

Instead of just crunching numbers, today’s accountant serves as a trusted business partner who offers strategic insights and informs decisionmaking regarding planning, risk, controls, process improvement, financial transparency, and more.

ACCOUNTING FRAMEWORK FOR THE NEW BUSINESS PROFESSIONAL

BUSINESS STRATEGY, GLOBAL BUSINESS ACUMEN & AWARENESS BUSINESS CONTEXT & FOUNDATIONAL SKILLSETS

Business Skills: Business Ethics, Technology, Data/Analytics, Financial Analysis, Project Management

Interpersonal Skills: Leadership, Communication, Teamwork, Critical Thinking, Problem Solving

STRATEGIC, OPERATIONAL & FINANCIAL LEADERSHIP ACCOUNTING CONTEXT, FOCUS AREAS & RELATED SKILLSETS

AUDITING

TAX

CONSULTING

Governance and Risk Management

Digital and Cyber Security

Deals

Forensics

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MYTH #2: Demand for accountants is decreasing with increased automation.

REALITY: Demand for accountants is higher than it’s been in years.

Automation has streamlined many basic accounting

At VSB, not only are we preparing accounting

functions but it has not eliminated the need for

students to meet today’s needs, but we are also

humans by any means. In fact, with access to new

anticipating where the industry is headed over the

and larger volumes of data, increased regulatory

next several years. We are equipping our students

and reporting requirements, and an increased

with the knowledge, skills and competencies to

need for digital and cyber security surveillance,

meet the challenges of the digital revolution,

accountants are in great demand. Those with the

combining fundamental accounting skills and

diverse skill sets mentioned earlier are in even

higher-level technological skills. We introduced

higher demand. Skilled accountants are needed

new elective courses at the undergraduate

to analyze and interpret data, offer insights into

and graduate levels to address changes in the

the cost-benefit analysis of technology adoption,

marketplace related to governance and risk

evaluate risk and provide expertise in financial

management, particularly in the areas of digital

reporting.

and cyber security, merger and acquisition

There are many areas of accounting that require

activity, and forensics.

a strategic perspective of the company, an

An additional area that is expected to drive

understanding of the markets in which each

significant demand for accounting skills is potential

company operates and the risks that are specific

new guidelines for environmental, social and

to each organization. The ability to address the

governance (ESG) reporting. To best prepare

many accounting-related areas that require

our students for where the industry is headed, in

judgement and the ability to consider a multitude

this and other areas, we developed new learning

of assumptions and areas of interpretation are skills

modules and have formed a strategic task force

that cannot be automated. As businesses become

that leverages the expertise of external companies

more complex, these areas requiring human insight

and alumni experts.

and expertise will continue to grow.

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MYTH #3: Career opportunities in accounting are limited.

REALITY: Career opportunities in accounting are endless.

Many people have an outdated view of the career

CAREER PATHWAYS FOR ACCOUNTANTS

opportunities that are available to accountants.

With so much change in the industry and the increased demand for diverse skill sets, accountants can now explore career paths that go well beyond

• CEO

the traditional tax and audit pathways. Economic

• Chief Financial Officer

factors, changes in regulations and reporting

• Chief Operating Officer

requirements, increased mergers and acquisition

• Forensics Expert & Consultant • Investment Banker • Internal Audit Leader

activity in the marketplace, and heightened focus

• Digital & Information Officer

on digital and cyber security, financial crimes and

• Chief Risk Officer

forensic activity all have created new and exciting

• Tax Attorney

• Financial Planning & Analysis Leader

• Audit Professional Partner

• Information Security Officer

• Tax Professional Partner

• Business Development Executive

opportunities for accountants.

Today’s accounting graduates that enter the workforce with versatile and well-rounded skills will have career options across many disciplines.

• Chief Ethics & Compliance Officer

I work on carve-outs and mergers for large companies and organizations.

I love the variety in my work from using analytics software, data visualization tools, to reading deal contracts and forming lasting relationships with my co-workers. The deals field is so dynamic that your opportunities and experiences grow right along with the business world.

Working in deals is also exciting because you get to have a hands-on role in major financial transactions that everyone will be reading about in the news in the months to come.

During my internship, I worked on two anti-corruption and bribery cases.

One of my projects involved a potential bankruptcy fraud where I was tasked with looking for inconsistencies in financial statements and investigating whether this company had any clear incentives or opportunities to commit fraud. Being an accounting major provided me with the foundation I needed to analyze the company and understand the investigation and it was great to see topics I learned in the classroom come to life.

EMMA WATSON ’22 VSB (Accounting), ’23 MAC Area of focus: Deal Advisory Services

SOPHIE SIMONE ’22 VSB (Accounting), ’23 MAC Area of focus: Investigations and Forensics 4

WHY YOU SHOULD CONSIDER AN ADVANCED DEGREE Now that we’ve debunked some of the top

you to acquire the higher-level, diverse skills the

accounting myths, hopefully you’ve gained a better

industry is seeking to meet the demands of today’s

understanding of the dynamic changes in the

business environment. These skills also increase your

industry and exciting career opportunities available

marketability across multiple business disciplines.

to accounting students. One of the most rewarding aspects in my role at VSB is the opportunity to talk with students about their future plans. While many students are eager to enter the workforce right away and get started on their CPA, I encourage them to keep a longer-term view and consider a graduate degree as an investment in their future.

At VSB, we offer two graduate accounting options: a Master of Accounting with Data Analytics (MAC) and a Master of Business Taxation with Data Analytics (MBT). Both programs give students the opportunity to expand their knowledge and acquire more in-depth technical and analytical skills.

Students can apply classroom learning to real-world

At the undergraduate level, you are learning

experiences, through complex case studies and

important accounting and business fundamentals.

opportunities to work with outside companies.

However, with a graduate degree in accounting you will build upon this strong foundation and take things to the next level, learning how to apply those skills and gain a deeper understanding of how different business concepts interact with each other.

Investing in a graduate degree, especially in pursuant of the CPA, will set you up for future success with diverse skill sets that lend themselves to a variety of exciting career paths. You will not only be prepared for the challenges of today’s

Studies show that an advanced degree in

fast-changing business environment, but will

accounting leads to higher promotion rates,

be well-positioned for success for many years

improved CPA exam performance, and preferential

to come.

hiring by recruiters. A graduate degree allows 5

For more information about graduate accounting programs at the Villanova School of Business, visit villanova.edu/gradaccounting.

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