The Future of Accounting: Exploring Educational Efforts with Professor Patrick Badolato

Badolato previously worked in public accounting and has been teaching at the University of Texas for just over fifteen years, having taught nearly 240 classes (what would be equivalent to almost 80 years of teaching for many professors). He holds his bachelor’s degree in accounting and economics from Villanova University, a Ph.D. in accounting from Duke University, and his CPA license.

Badolato has taught accounting at every level, from introductory freshmen classes to more high-level master’s classes including in the university’s fulltime, working professional and executive MBA, MSF, and MSTC programs. While it can be challenging to teach diverse audiences at differing levels, Badolato believes that this provides him with insight into students throughout their exploration of the accounting world. He explains that teaching is a two-way street in that he learns through having discussions with his students daily. It is clear from speaking with Badolato that he not only has a passion for the language of business but also for educating.

Challenges in Educating the Accountants of Tomorrow

There are plenty of challenges for educators in general but, specifically those in accounting field face an uphill battle. In the 2021-2022 academic year students pursuing a bachelor’s degree in accounting decreased 7.8% from the prior year and 6.4% in a master’s of the same major*.

Want to learn more about the state of accounting? Discover more here.

Confronting Stereotypes

Badolato explains that there are negative stereotypes against accounting that affect a student’s decision when choosing a major. He references negative attitudes depicted in movies and pop culture but also from business school professors throughout the country. He expresses an ongoing challenge with professors who choose to emphasize the tedious and mundane rather than dynamic and relatable content. “We are a great accounting programs and have an amazing reputation but it’s difficult to change the trend and perception of the field in society.” Badolato reveals. He continues and states that “the burden falls on educators to lead by example and show students that this is so much more than journal entries and transactions”.

Facing a Lack of Synthesizers, Integrators, and Communicators

As AI and automation continue to be implemented into accounting systems, this begins to eliminate the manual task work that accountants were known to be slaving over in past decades. Because of the continually growing impact AI and automation are having on the industry. Anyone can have strong technical skills, especially AI. Badolato concludes that students and professionals need to adjust to this and provide skills that (as for now) AI cannot. He describes that there is a great opportunity for individuals who are willing to ask questions, synthesize, integrate, and communicate well. While accountants can find success in a career surrounded by other accountants, as they grow in their role and begin to lead others or become involved in more strategic conversations, they will need to adapt. Learning how to communicate with non-accountants is crucial in developing one’s career and according the Badolato, that there is a huge opportunity for those who communicate effectively and simplify their explanations of financial complexities.

How Accounting Educators Can Create Change

To combat these challenges, Badolato shares his perspective on how educators can highlight the value of accounting for students.

Providing Real-Life Relatable Insights

Sometimes learning new information can be dull or confusing if it is not applicable or found relatable to one’s own life, especially if there are already negative preconceived notions surrounding the topic. “Everything has to be real-world examples” confesses Badolato, as he explains that many of the examples given in textbooks reference manufacturers or other companies versus fast-casual restaurants that all students have an experience with. Badolato believes that by providing real-life insights into businesses that the students can develop not only a better understanding of the concepts but also a genuine interest in the topic.

This could be illustrated by Badolato asking his students, “Why does Starbucks has a reward program? And how could that benefit them for us to upload our payments onto the app prior to purchasing?”. He explains this as “teaching an awareness of strategy and covering ‘how do you get into an understanding of finance, operations, and everything else through accounting’s unique insights into the business?’”. It seems that one way to combat the negative stereotyping against accounting is to provide students with real-life relatable insights that they can apply and consider when they interact with companies and brands.

Another example Badolato shared was analyzing the cost structure differences between Shake Shack and Wingstop and that he chose these examples so that the students “see and realize ‘oh this is giving me insight or does relate to my life in some way’”.

Demonstrating What It Means to Be Different

In a world where AI and automation continues to develop and eliminates the need for humans to complete manual tasks, it is more difficult for professionals to stand out on their technical skills alone. Badolato believes that to address this challenge he, and other educators, must encourage students to prioritize differentiating themselves. He states that “the workforce will continue to change and it’s going to benefit those who have a differentiated and harder to replace skill set and it might be at the cost of those who don’t”. He continues by stating that “even if someone never prepares financial statements in their career, I want to ensure that they still walk away from the intro-level accounting class with a ton of value”. Students at every level need to ask themselves how they can add unique value to potential employers.

Badolato encourages students to become perpetually curious and ask not only what is happening but why. Badolato does not default to giving his students all of the answers but guides them in asking the right questions. Badolato’s relatable and Socratic method of teaching has made an impact on his students and their education. He urges students to “be an individual who can thoughtfully ask questions” since “all accounting professionals and really all humans need to be able to make decisions with financial information.”

He also points out that with the increasing amount of tasks becoming automated, professionals and students alike should have more time on their hands. He inquires about what people are doing with that saved time; are they utilizing it to continue to educate themselves about the industry or work on their professional communication skills? Badolato affirms that “learning doesn’t end because you get your degree or pass an exam. I am still learning from my students all the time. In any job I take, I know that there is so much more to learn”.

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Looking Towards What’s Ahead

The future is difficult to predict but Badolato humbly speculates that the workforce will continue to change and need to adapt due to technological advancements. Proactively, he questions what he and other educators can do to help students, knowing that AI and general technology will continue to change every profession. He reiterates the importance of broadening one’s skill sets but also optimistically believes that as technology will continue automate mundane tasks which may allow for better decision makers.

With increased time availability, people will have more bandwidth to be more cognizant and aware of a variety of human and financial factors. Perhaps the field will evolve into an occupation where individuals focus more on the pressure, stress, and incentives of a business, rather than getting absorbed in the details of financial statements. He then wonders if education will adjust in implementing a more interdisciplinary approach in the early stages of one’s career.

Regarding ERP software he hopes that providers continue to develop dashboards that provide accounting professionals with real-time insights, as well as quality and adaptable data.

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Strategic Direction for Future and Current Accounting Professionals

Thank you, Professor Badolato, 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 the University of Texas at Austin.

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