From accounting machines to artificial intelligence: The battle of generations for accounting

The Department of Accounting of Corvinus University of Budapest organized the Accounting Club for the first time this spring, which has already been organized four times. The events of the club are usually attended by the departmental colleagues, current and former students, as well as accounting teachers and students of other universities, as well as practitioners, in varying numbers and circles. 

The most recent meeting was held on October 14, entitled “The Battle of Generations for Accounting”, where three colleagues from different generations – Csaba Adorján, Kristóf Mente and Anett Zanócz – talked about the accounting profession, their relationship to it and the changing role of accounting. The gathering kicked off with an exciting film insert from the film Accountant, which outlined the creative but less legal side of accounting. Éva Gulyás, master lecturer at the Department of Accounting, immediately stated that this type of accountant will not be discussed at the event. 

Numbers and logical thinking 

During the discussion, it turned out that the logical nature of accounting, the example of older professionals and educators significantly influenced the choice of profession of the interlocutors. They all emphasized that the most difficult but exciting feature of professions related to accounting is continuous change and adaptation, which is understandable for professionals who have been pursuing the profession for 20-50 years, but is still surprising for PhD students who have been in the profession for a few years. 

Csaba Adorján, who has been dealing with accounting for 50 years, shared that a young instructor finally turned his interest towards the profession: “Accounting is a logical and closed system that constantly presents new challenges. I always knew that I wanted to have a good understanding of economic processes, so I had to understand accounting.” Kristóf Mente, a representative of the middle generation, said that he attended a secondary school of economics, but he only at university did realize how fascinating the world of accounting is: “I realized that if I know accounting thoroughly, I can actually understand the circulation of the economy”. Anett Zanócz mentioned that when she was a child she wanted to be a dentist, but she was carried away by the world of numbers. She emphasized that during accounting work she likes to deal with complex tasks, such as consolidation tasks, IFRS conversions, and he also tries to gain experience in sustainability reporting, which is a constant challenge due to the ever-changing regulatory environment. 

The role of accounting in companies 

Accounting professionals play a key role in the operation of companies, as accounting decisions fundamentally affect a company’s performance and financial position. According to Anett Zanócz, accounting should be part of everyday decisions in companies, Kristóf Mente said that “An accounting professional must understand the whole activity of the company and may even have a say in the conclusion of contracts.” He also highlighted that analytical skills have become important today. “Corvinus-educated accounting professionals are in demand because they it is well-known that they are well trained and can be counted on,” he added. In addition, it was emphasized that international accounting knowledge is now essential for accounting professionals. Interestingly, this year for the first time a one-year English-language master’s program in accounting, titled International Accounting and Audit, was launched at the university. 

Appreciation is an eternal question 

During the discussion, it became clear that participants, regardless of generation, perceive the variance in the esteem of the profession. Csaba Adorján told the audience that many people ask him for a good accountant recommendation, and his first question is always how much the current accountant is paid. “If that’s all the accountant asks for, look for another one, because he or she can’t do a good job responsibly for that,” he warned. Those who are not accountant often identify the profession by recording data and generating accounting entries, while economists recognise that the knowledge and experience of those working in accounting can help increase the value of a company by setting up appropriate contractual structures and solutions. 

It turned out during the conversations that start-up salaries in the audit and IFRS areas are already higher than in the past. “At the beginning of the career, the recognition of professionals is a little lower, but the career path is rising, so in the long run it is also financially worthwhile,” Kristóf Mente stressed. 

The gender balance in the profession was also discussed: in many companies, around 75% of employees in this field are women, but the proportion of women in management positions is much lower. Participants agreed on the importance of increasing the proportion of women managers in the accounting sector. 

Precise, flexible, creative 

Towards the end of the event, the question arose: what are the three most important qualities that a good accountant should possess? All participants responded via their phones, and the result quickly became clear: precision comes first, followed by flexibility and creativity. 

Past meets present 

The atmosphere of the event was made special by the interaction between the participants. The old accounting tools made the event extremely interesting for younger people as well, as they could get acquainted with manual accounting tools such as the Evolut board, accounting logbook, indigo, and with the devices supporting the machine bookkeeping of the time (accounting machines, the “riders” used to program them) that they had never encountered before. 

After that, the participants also discussed the future of the accounting profession. The emergence of artificial intelligence opens up new dimensions in the profession. According to Kristóf Mente, AI will facilitate processes that can be easily standardized, while Csaba Adorján highlighted the advantages of automating routine operations. “Accounting professionals must constantly adapt to changing technologies,” he added. According to Anett Zanócz, AI is a tool that can reduce the amount of work, but you will always need a good accounting expert behind it. 

The theme of the next Accounting Club event will be artificial intelligence, which will be discussed by PWC experts and researchers from other universities, in addition to lecturers from the Department of Accounting. The event will take place on November 11, 2024, 6. P. M. at Faculty Club, Corvinus Main Building.