This week I answer a common question… Are Computers taking Accounting Jobs??
VIDEO SUMMARY
I get asked this question a lot. “Are computers taking accounting jobs?” And when I get asked this question, I actually chuckle to myself, because it is something I never worry about. But there are a lot of people out there who worry about this. So I wanted to share my perspective.
The simple answer is, YES, computers are taking accounting jobs. But there is no reason to worry about it. So let me explain what I mean. You really have to look at this from a historical perspective. Imagine how accounting was done before computers. Companies would have these massive rooms that were full of accountants. And these accountants would have these ledger books, and they would write by hand every transaction that happened in the company. Then you would take all these books, add them all up, and that is how you would create a set of financial statements. This took an enormous amount of man power. Then computers come along. Nothing is done by hand anymore. When a transaction happens it is instantly recorded in a computer. So all these jobs instantly become obsolete. None of these accounting jobs exist anymore. So this happened in the 80s and 90s. And here we are today in 2017, and we have more accounting jobs than ever before. So computers destroyed all these jobs but we still need more accountants.
So that’s why I never worry about it. Because we have lived through incredible technological advances, and the role of the accountant continues to be in demand. The reason for this is there are business owners around the world. And these business owners need a physical person in their business to watch the money. It doesn’t matter how advanced your computer system is, there still needs to be someone sitting there watching the money. And that accountant, needs another physical person from outside the company to come in and audit them. And then both of those accountants need another accountant to come in and do all of their taxes. Technology will always advance, but accounting jobs are also constantly changing. Business is becoming more complex, and there is more demands on accountants then ever before.
I don’t think this question is really about computers. Computers are just a scapegoat. What this question is really about, is job security. Accountants tend to be practical people, and so job security is something they really care about. Job security is one of the reasons people are attracted to accounting. And so when you threaten job security, accountants freak out. So if this is you, if you are worried about job security, there is a couple of things you need to realize.
- There is no such thing as 100% job security. So stop worrying about. Things happen in life. Your company could unexpectedly go bankrupt, and you would be out of a job. And you know what? You just deal with it. You just go out and find another job. Now I am not making light of being unemployed, because I know it’s difficult and scary. But there is no point in making life choices, based on the fear of something you have no control over.
- Don’t choose a career by trying to predict the future. Choose a career based on what you love and jobs people are paying for today. Your career is going to be 30-40 years long. You have no clue about what the business world is going to look like in 30-40 years. So stop worrying about it. If accounting stops being a thing in 40 years, than go find another job.
- Never stop learning. What you learn in college will become obsolete in five years. If you take your first job out of college and never improve your skills, you probably should worry about job security. The world is always moving forward, and you want to make sure your skills are always in demand.
- Generate tremendous value. If you are generating tremendous value at your job, you will always have job security. If you are making 100k at your job, and you are generating 200k of value for the company, that company is never going to let you leave. So instead of worrying, you should be thinking of ways to really excel at your job. Find every opportunity around you to create tremendous value.
I am hoping my message here is hopeful. The world is always changing, but you have control over your destiny. You have the choice to continue improving your skills. You have the ability to create tremendous value at work. So don’t be scared of job security, and don’t be scared of computers.
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Neither Zach De Gregorio or Wolves and Finance Inc. shall be liable for any damages related to information in this video. It is recommended you contact a CPA in your area for business advice.
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