In a fast-evolving digital ecosystem, where technology is reshaping industries at the speed of light, the accounting profession in India stands at a crossroads. Sajid Khan, Director of the Association of Chartered Certified Accountants (ACCA) in India, sheds light on the critical issues confronting the sector, from the growing influence of Artificial Intelligence (AI) to the country’s aspirations for its own “Desi Big 4.”
Khan issued a stark warning, saying accountants who fail to embrace and integrate AI into their work risk becoming obsolete.
Khan cautioned: “Artificial Intelligence is going to replace professional accountants who do not understand and embed these technologies,”
However, he was quick to point out that AI cannot supplant the strategic thinking, decision-making, and emotional intelligence that human accountants bring to the table.
“Accountants don’t just crunch numbers; they can leverage technology to avoid mundane, routine tasks,” he emphasized, suggesting that those who master AI can elevate their roles to focus on more valuable, high-level activities.
Rising Demand Amid Employment Concerns
The demand for skilled accountants in India is surging, even as the profession grapples with an unsettling paradox: unemployment coexists with a significant shortfall in qualified professionals. Khan highlighted that the Indian accounting market, valued at $13.6 billion in 2020, is projected to grow to $20 billion by 2025. Yet, despite this expansion, the industry faces a critical skills gap.
“There is an acute shortage of accounting professionals in India, and we see a surge in demand,” Khan noted. However, he underscored that the issue lies not just in employment numbers but in employability. “The issue is with people with the right skills; employment is a problem, and employability is a crucial concern,” he said, stressing the importance of aligning the workforce with global standards.
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Khan also pointed out the need for better application and communication skills among new graduates, attributing the gap to the rapidly changing landscape. Effective collaboration and diversity, he argued, are essential for the future of the profession.
India’s Quest for a “Desi Big 4
As India continues its push to establish a “Desi Big 4,” Khan reflected on what truly matters: the extent to which local talent and values are harnessed. “Big 4, Big 5, or Big 6—what is more important is how much local talent is involved and how much local values and services are utilized,” he asserted, noting that the involvement of Indian talent is crucial, regardless of whether the firm is Indian or a global entity operating in the country.
The Shift Towards Specialization: A New Era for Accounting and Consultancy
Another significant trend Khan discussed is the growing separation between accounting and consultancy services, driven by a demand for specialized expertise and regulatory requirements. “Clients are increasingly selective about their consultants, seeking specific expertise rather than general knowledge,” Khan explained. He highlighted that businesses are responding to this demand by splitting into more specialized entities, allowing them to offer targeted skills and expert advice in their particular fields.
The era of the “jack-of-all-trades” consultant is fading, as clients now prioritize depth of knowledge and precise expertise, reflecting the broader changes sweeping through the accounting profession.
