Accounting practises has been there in practise since the first farmers started making track records of their sheep or cows and ever since merchants started keeping records of their inventory. Fast forward thousands of years and Accounting has become one of the most sophisticated professions. . Accounting is a system by which financial information is identified, recorded, analyzed, summarized, and reported for the use of decision making. In other words, it is the language of finance and business.
Tax and Accounting consultants are examples of some of the earliest form of outsourcing. Business firms and their managers have been seeking advice from management consultants for planning critical business strategy and also for seemingly procedural measures such as book-keeping, accounting and tax. Though the Accounting industry has been in existence for decades now, it has not received enough research or academic attention. One of the reasons for this is the fragmented nature of tax consultancy firms. Of late, diversified corporations have employed corporate staff with titles that include “tax-consultants” as full-time exclusive contracts.
Such internal consultants provide firms with specialized expertise.Tax and accounting consultants add value to the organizations – be it, public sector or government sector by providing them with valuable insights and unique expertise regarding how to better manage its financial operations and dealings. Likewise, the natures of the tax management consultants are characterized by consultants who are-:
Despite the dynamic nature of the field, the common notion among the public regarding that of accounting consultant is that it is filled with maths geeks who loves crunching numbers in an otherwise tedious and boring profession. The basic mechanics and technicality of accounting can be boring and tedious sometimes but these tasks are easily fulfilled by AI –based software nowadays. Automation has revolutionized the tax and accounting industry in recent years, so much so that tax accounting consultants have broken through the arbitrary national borders and are setting up their bases in developing nations such as India, Korea and China. ‘Outsourcing’ is the new trend for the tax accounting consultants. This can be validated by the fact that at present this domain is dominated by four companies’ world over. The Big Four is comprised of Deloitte, EY (formerly Ernst & Young), KPMG, and PricewaterhouseCoopers. Accountants, however, don’t work just for the Big Four; there are thousands of accounting consultants in the world.
The accounting industry is in a constant state of flux – as such many of the accounting consultants have gone paperless and have evolved their business operations according to the tune of the time. They interact with their clients via cloud computing, collaborative software and social media. The industry is in need of accounts that not only have the necessary expertise in taxation and accounting but also should have technical abilities, good communication skills and also problem solving skills. Employment rates in the tax and accounting sector will be at a high rate of 11 percent between 2018 and 2024 – highest among all the other sectors. These are some of the trends that may shape the future of this industry.