The Future of Accounting: An Academic Assessment with Liz Cowle

Automating Accounting

“AI and automation have the potential to fundamentally reshape the accounting and finance industries.” Cowle emphasizes. She explains how “routine tasks like data entry, reconciliations, and transaction categorization can now be largely automated.,”. Xledger is an accounting and financial management software that automates up to 75% of manual tasks previously performed by accountants.

While this may strike fear in some, Cowle assures us that “the rise of AI does not eliminate the need for accountants.” She describes how accountants’ roles are now elevated in the way that they no longer need to spend hours compiling reports or entering data but “are now expected to interpret data, provide strategic recommendations, and guide businesses through complex financial decisions”.

Automation and AI have transformed the accounting and financial world, but they are not removing the need for accountants. There now becomes the need for talent who can properly interpret information for their peers and strategize amongst their superiors. Cowle predicts that “the demand for accountants who can work alongside AI and leverage automation will continue to grow.”

The Secret Challenges of the Accounting Industry

While some may have predicted that the implementation of AI and automation into the accounting world is the biggest challenge for accountants today, Cowle thinks otherwise. She proposes that human hesitancy to technological change and a decrease in career interest and retention are what more accounting professionals and educators need to be paying attention to.

Human Hesitancy to Technology

Due to rapid technological advancements such as automation and AI, “many accounting professionals are struggling to keep up or don’t know where to start.” Xledger has spoken with accounting firms throughout the country that utilize ancient systems, which describe an unsureness of newer technology due to naivety. By not utilizing new technologies, businesses run the risk of falling behind the competition. Xledger customer Ben Stopper with Fontis Energy stated, “If you’re still using these other systems, you have absolutely no idea how far behind you are. You might feel current, but the reality is you’re not—you’re way behind.” With advancing technology, advisory and strategic functions are becoming more essential since many of those manual tasks are now being automated through software like Xledger.

Negative Perceptions and Burnout

Cowle also points to the decrease in career interest and retention as a challenge for those in the profession. In the 2021-2022 academic year, students pursuing a bachelor’s degree in accounting decreased by 7.8% from the prior year and by 6.4% from a master’s degree in the same major*.

“The CPA licensing requirements, long work hours, and evolving expectations have made it harder to attract and retain top talent. Over the past decade, fewer students have been choosing accounting as a major,” explains Cowle. She points to negative perceptions and discipline competition as the primary reasons students are opting away from pursuing a career in accounting.” Cowle describes how accounting has been painted to be “rigid and uninspiring,” making the major unappealing to incoming undergraduates. Students are opting to choose other disciplines that they perceive to have “higher salaries and more engaging careers,” such as data analytics, finance, etc. She also explains that even if a student chooses to pursue a career in accounting, the retention rate in the field is poor.

Cowle believes that the public accounting retention rate exists primarily for two three reasons: burnout, perceptions of poor work-life balance, and perceived compensation disparities. She describes early career accountants often experiencing heavy workloads during busy seasons with long hours occasionally exceeding 55+ hours in a work week. This sort of work environment breeds burnout. Between 2019 and 2021, 300,000 accountants quit their jobs*. Regarding compensation disparities, Cowle explains how starting salaries in accounting “are often lower than those in finance, consulting, or technology roles, though firms have made advancements in recent years to address this.” Those with accounting or finance degrees may opt out of accountant roles for better pay and a better working environment.

Solving the Problems of Tomorrow

As technology advances and negative stereotypes continue to persist, these issues are not going anywhere. Cowle expresses that educators and accounting professionals are those who must work alongside these issues.

Cowle calls her fellow educators up to the challenge, stating, “As educators, we need to integrate more technology-focused coursework, including AI and data analytics, into our accounting programs. Students need hands-on experience with real-world tools that they will use in practice.” Cowle has become a part of this movement towards integrating more technology into the classroom through developing data analytics for accounting course “designed to equip students with the skills they need to thrive in a rapidly evolving business landscape.” Cowle teaches in this way to hopefully achieve her secondary goal of aiding her students to develop critical thinking skills. She believes that this is essential to their success “if they wish to excel at tasks that cannot be replaced by AI.” In this way, Cowle not only sets up individuals for success in their careers but also the future of accounting by sending out graduates who can offer unique value.

In addition to this, Cowle encourages accounting professionals to showcase how exciting, dynamic, and rewarding a career in accounting can be. She believes that “By rebranding the profession and making career paths more flexible, we can attract the next generation of talent.”

From here, she believes that professional firms and organizations along with universities need to continue to collaborate more closely. Experiences such as mentorship programs and internships can help students see how valuable and rich opportunities are in the profession.

Predicting and Advising the Future

With technology developing before our eyes, it’s hard to keep up with the latest advancements, let alone trying to predict what is to come. Cowle takes on this challenge as well.

Moving forward, she predicts a greater emphasis on data analytics and advisory roles. She describes accountant roles shifting to take on more advisory and decision-making roles. She predicts that business intelligence, financial storytelling, and critical thinking will become core skills and differentiators for future candidates. She advises future accountants to embrace technology and develop important soft skills such as communication, problem-solving, strategic thinking, etc.

Cowle also imagines that accountants will begin to play a more pivotal role “in ensuring transparency, compliance, and the accuracy of sustainability disclosures.” as environmental, social, and governance (ESG) reporting is becoming a greater focus for regulators and investors. She foresees that the blockchain could potentially revolutionize the auditing process and that auditing may move towards real-time checks with the help of AI to reduce fraud risk and improve accuracy.

She predicts that accounting professionals will adapt to modern workforces in continuing to offer more hybrid work environments in order to combat the previously mentioned challenges to emphasize a healthier work-life balance for employees. Gallup cites that in November of 2024, 55% of U.S. work environments function from a hybrid model and that 76% believe to have experienced an improved work-life balance**.

Thank You

Thank you, Professor Cowle for speaking with us about your experience in the classroom and the field, your advice for accounting professionals in every stage of their career, as well as where and how you hope to shape the industry from Colorado.

Sources

* Maurer, M. (2023, October). Accounting graduates drop by highest percentage in years – WSJ. The Wall Street Journal. https://www.wsj.com/articles/accounting-graduates-drop-by-highest-percentage-in-years-5720cd0f

** Gallup. (2025, February). Indicator: Hybrid work. Gallup.com. https://www.gallup.com/401384/indicator-hybrid-work.aspx