THE FUTURE OF ACCOUNTING

1. What is your prediction about the future of accounting? Would that be

good?
2. Will there be any application used in accounting work in the future?
3. Will be working in accounting field promising?
4. If you have to set up a new business in accounting, what business will
you establish?

PART A
Listen carefully and fill in the blank with appropriate word

Since man started conducting business almost 7000 years ago, there has
been a need to record and track these transactions - from this need came
accountancy. As business changes so, too, does accounting and prior 1

methods are forced to change- so the question is: how will accounting
change as we move into the future?

There are many predictions on this topic, but in this article, we have selected
our top 5 for you.
1. Web-based technology
Although there are already web-based accounting solutions, we expect to
see the number and functionality of them improve greatly in the coming
years. These solutions will include software which integrates with the various
government taxation organs. The result of which will be a system where
compliance 2 work is automated. Current predictions are that this will reduce
the amount of time spent on compliance work by 10% - 40%. As such firms
will need to undertake 3 new services which will offset this loss in billable 4
hours and make it possible to stay afloat 5.

2. Simplified compliance
The trend 6 of simplified compliance isn't new, and shouldn't come as a
surprise to anyone. The simple truth is that governments want to be
reelected, so it is in their own best interests to satisfy the people, and one
way of doing that is to reduce the amount of red tape 7 associated with
owning and running a business. We already have online filing of tax forms,
and online help desks in taxation authorities - so the continuation of this
trend may see a complete shift to a paperless system of accounting.

3. Fewer, but larger firms

Unlike the majority of professions, the accounting profession is still a cottage
industry 8 comprised primarily of thousands of small firms. In fact, it is
estimated 9 that there are over 1.2 million accounting firms worldwide, but
only 60,000 have revenues of over $3 million, with most firms having fewer
than 5 staff. Most small accounting firms are currently made up of 2
partners and a handful of staff, who are only capable of offering limited
services. Arising from the reduction in compliance work, these firms may
find it unprofitable to continue in this sector so we are likely to see smaller
firms merging 10
to form companies which can offer an extended range of 11

services.

4. Additional services
In conjunction with 12 point 3, larger firms will find themselves competing for
clients by offering services which were traditionally offered by financial
advisors, or even legal council. We expect these services to include:
 Growth - helping with the development of the clients company by
advising them on methods to grow the business.
 Succession - aiding clients in selling commodities 13 , or part or all of the
business when the time is right.
 Planning - developing strategic plans for the company including asset and
the owners, this is likely to take in retirement planning.
These additional services will aim at integrating all clients needs in one
place, and will add to the growing trend for such work to be outsourced 14.

5. Business success center

By offering the additional services mentioned above, the accounting firm will
be transformed into a center for business success. We speculate 15 that
these centers will be much more client friendly and each client will have
their own relationship manager who will be responsible for advising on the
best package of services for the client. This will avoid the current system of
duplication 16 of questions, when a client speaks with an accountant, a
lawyer and a financial planner separately. While these are only predictions of
what will happen in the coming years and do not take into account 17 any
unknowns, one thing is for certain: the future of accounting looks exciting.

PART B
1. Find at least ten sentences which used “will” from the text above

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10) …………………………………………………………………………….......

2. Make 3 questions from the text and have your partner answer them

3. Write 5 things you want to do or achieve after leaving college