# Utilising digital tools to close the finance and accounting skills gap
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-10-07
Category: TECHNOLOGY
Category URL: https://financedigest.com/category/technology
Meta Title: The Urgency of Digital Transformation in Finance and
Meta Description: Learn about the growing importance of digital skills in the finance and accounting industry, and how new technologies are shaping the future of work.
URL: https://financedigest.com/utilising-digital-tools-to-close-the-finance-and-accounting-skills-gaphtml

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_![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/233-1736815077295-compressed.jpg)_

_By Christian Müller, Chief Financial Officer at_ [_Moss_](https://uk.getmoss.com/accounting)

The rhetoric of digital transformation has been growing in urgency since the turn of the millennium, and the financial services and accounting sectors have found themselves slow to catch up, despite a positive start. The growing role of SMEs in economies across the globe has increased the bureaucratic burden, whilst larger companies have found themselves hiring as many IT staff as they are bankers, accountants and advisers. SMEs now represent about 90% of businesses and more than 50% of employment worldwide [according to the World Bank](https://www.worldbank.org/en/topic/smefinance#:~:text=SMEs%20account%20for%20the%20majority,(GDP)%20in%20emerging%20economies.), and it’s estimated that 600 million jobs will be needed by 2030 to absorb the growing global workforce.

We are starting to see job roles require a convergence of skill sets that were once held to be separate, with digital dexterity becoming a top priority, or even simply table stakes, for all employers in finance and accounting. Not only this, but the [need for digital skills across every](https://www.financedigest.com/10-secrets-every-entrepreneur-needs-to-thrive-in-2023.html "10 Secrets Every Entrepreneur Needs to Thrive in 2023") industry is increasing competition for new hires. Although it’s a lucrative market for potential employees, the [industry is struggling](https://www.financedigest.com/struggling-british-pig-industry-calls-for-tesco-to-step-up.html "Struggling British pig industry calls for Tesco to step-up") to cope. Despite initiatives to get staff up to speed, the desired skill sets are now more fluid. Employees not only need entry-level training, but are required to [keep pace with the rate](https://www.financedigest.com/dollar-bounces-as-fed-seen-keeping-up-aggressive-rate-hikes.html "Dollar bounces as Fed seen keeping up aggressive rate hikes") of technological change as well.

Unfortunately, the [UK government has reported](https://www.ukfinance.org.uk/news-and-insight/blogs/skills-and-talent-financial-services-impact-pandemic#_ftnref3) that financial services have one of the lowest rates of investment in employee learning and development, which is contributing to the widening skills gap.

**Changing tides**

The good news is that it isn’t all [doom and gloom](https://www.financedigest.com/its-not-all-gloom-and-doom-at-the-moment.html "It’s not all gloom and doom at the moment") for finance and accounting – in the face of immense uncertainty during the pandemic, the clouds began to part. The whole world was shocked by the strength with which our digital ecosystem held up during the outbreak of coronavirus in 2020, when the number of people working from home more than doubled to 8.4 million [according to the Office for National Statistics](https://news.sky.com/story/covid-19-84-million-were-working-from-home-last-year-as-pandemic-struck-12309068), with some of the largest banking groups including JP Morgan leading the charge on office closures.

Since then, we have seen the rate of innovation skyrocket, with new [technological solutions coming to market at a rapid pace to help ease the burden of the digital](https://www.financedigest.com/you-cant-get-faster-than-that-spring-statement-update-delivered-digitally-as-it-happens-with-app-driven-technology.html "‘You Can’t Get Faster Than That’ – Spring Statement Update Delivered Digitally As It Happens with App-driven technology") skills gap. New solutions driven by artificial intelligence (AI) that make the most of the finance and [accounting industry’s previously underutilised pools of data are powering-up automation](https://www.financedigest.com/5-common-mistakes-around-accounts-payable-automation.html "5 Common Mistakes Around Accounts Payable Automation"), delivering critical insights, and helping predict new trends and industry patterns. All this is helping [firms to streamline their operations and free-up staff](https://www.financedigest.com/uk-firms-plan-biggest-pay-rises-since-2012-to-fill-staff-gaps.html "UK firms plan biggest pay rises since 2012 to fill staff gaps") to focus on delivering better customer service, backed by data and an array of tools at their disposal.

**New** [technology for new challenges](https://www.financedigest.com/five-technology-challenges-that-are-holding-back-legal-innovation.html "Five technology challenges that are holding back legal innovation")

As [customer expectations have changed](https://www.financedigest.com/credit-chameleons-lenders-must-tune-in-to-changing-customer-attitudes.html "Credit Chameleons – Lenders must tune in to changing customer attitudes"), the need for new, agile solutions has become paramount for success. The use cases for AI-driven tech are endless, and we’re just beginning to scratch the surface on what it can [deliver for finance and accounting](https://www.financedigest.com/new-global-relationship-between-reckon-software-and-myfirmsapp-delivers-closer-interaction-between-accountants-and-their-clients.html "NEW GLOBAL RELATIONSHIP BETWEEN RECKON SOFTWARE AND MYFIRMSAPP DELIVERS CLOSER INTERACTION BETWEEN ACCOUNTANTS AND THEIR CLIENTS"). The tech can deliver on invoice management, reimbursements, cash flow insights, and automated [accounting to help businesses](https://www.financedigest.com/5-simple-ways-to-prevent-a-data-breach-from-putting-your-accountancy-practice-out-of-business.html "5 Simple ways to prevent a data breach from putting your accountancy practice out of business") streamline their internal operations and focus on their growth strategies. Not to mention the benefit of making [life easier for their accountants](https://www.financedigest.com/half-of-employees-aged-40-and-over-in-the-accounting-banking-and-finance-industries-think-they-will-have-to-work-longer-to-live-the-life-they-want.html "Half Of Employees Aged 40 And Over In The Accounting, Banking And Finance Industries Think They Will Have To Work Longer To Live The Life They Want"). Tedious document collection, cost allocation, receipt entry, and more can be reduced to a number of clicks, whilst [finance teams can now easily manage](https://www.financedigest.com/how-parents-can-help-students-manage-their-finances.html "How Parents Can Help Students Manage their Finances") all corporate expenses centrally in one place. By having a centralised platform, [accountants and finance teams](https://www.financedigest.com/what-can-accountants-learn-from-great-britains-olympic-team.html "What can accountants learn from Great Britain’s Olympic team?") can have full visibility of transactions and expenses, so getting to the bottom of invoicing mysteries has never been easier.

On top of this, technology has powered an Open Banking revolution, which has opened the doors for new conversations around utilising [financial data](https://www.financedigest.com/data-fake-will-be-the-new-real-in-financial-services-in-2023.html "Data: Fake will be the new real in financial services in 2023") for greater innovation efforts. Time-saving is being powered by the digitalisation of taxation, which is making it easier for [businesses to eliminate common errors and save time managing their tax](https://www.financedigest.com/5-common-tax-mistakes-small-businesses-make-in-australia.html "5 Common Tax Mistakes Small Businesses Make in Australia") affairs. The use of technology to support auditing reforms is also helping [firms stay on top](https://www.financedigest.com/top-north-east-financial-adviser-firm-talks-corporation-tax.html "Top North East financial adviser firm talks corporation tax") of compliance and bring in new customers.

It is a truly exciting time for [financial services](https://www.financedigest.com/the-future-of-financial-services-tech-evolution-not-revolution.html "The future of financial services: Tech evolution not revolution ") and accounting. However [firms must get on board with the culture of digitalisation and open themselves up to trialling new solutions](https://www.financedigest.com/aon-completes-acquisition-of-health-and-benefits-brokerage-and-solutions-firm-admix.html "Aon completes acquisition of health and benefits brokerage and solutions firm Admix"). Of course, this also requires a willingness to set aside more budget for bringing new capabilities to the business, but the [rewards are becoming](https://www.financedigest.com/can-rewards-become-the-next-currency.html "Can rewards become the next currency?") harder and harder to ignore. Those that dig their heels in will only find themselves further behind the curve, whilst the champions of this new era in finance and [accounting will be those who onboard tailored solutions that compliment the needs](https://www.financedigest.com/5-countries-you-need-to-have-an-offshore-account-in.html "5 Countries You Need To Have An Offshore Account In") of their workforce.

Now is the time to retire legacy systems and look at [investing in agile solutions that can evolve to keep up with new business](https://www.financedigest.com/why-investing-in-employee-health-can-be-good-for-business.html "Why investing in employee health can be good for business") and customer demands. This is not only going to improve the day-to-day experience, but it helps to better prepare the industry for future unpredictable events – a [lesson well learned](https://www.financedigest.com/learning-the-lessons-of-the-bangladesh-bank-heist.html "LEARNING THE LESSONS OF THE BANGLADESH BANK HEIST") over the last few years.


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