The results of this poll were a very positive surprise for the PACE directors. We had anticipated many more resources focused on financial reporting. Financial reporting was meant to encompass the entirety of financial accounting work…I hope that was how it was interpreted. The results are not consistent with the anecdotal evidence that I hear…perhaps PACE followers are “above average”! And are the leading edge of a favorable and hopeful trend.
PACE (and most major accounting organizations) believes that routine financial processing and reporting work will shrink as technology and automation become more accessible. It is critical that the accounting profession prepare for this eventuality by upping its engagement as a business and strategic partner. The Profitability Analytics Framework and its supporting components are entirely focused on creating an environment where causality, decision science, operational modeling, and economic reality form the basis of analytics…not accounting and audit rules and standards. This is one skill set that will endure and expand as automation increasing encompasses the standardized, compliance oriented components of accounting work.
Defining the decision support world of work is a challenge for many organizations and their CFO’s. The value proposition (really, the requirement for) regulatory reporting is clear and unambiguous. Decision support work requires proving your value continuously, and to some extent, competitively in the organization. Accounting will always have the greatest insight into financial results, but we need to leverage that knowledge into a decision support framework that looks longer term and applies more directly to the daily decisions made throughout the organization. Accounting needs to become a facilitator and partner in performance. That is what the Profitability Analytics Framework is designed to do: provide a roadmap for finance and accounting organizations to improve their relevance as business partners throughout the organization without the aid of accounting rules, standards, and requirements.