The Changing Accounting Landscape

It should come as no small surprise, especially to those of you reading this book, that the business landscape at large is in the midst of a technological paradigm shift. That phrase may appear to be excessive or perhaps a little buzzworthy, but it is difficult to think of a word or phrase that would be equally appropriate. In addition to the underlying trends that are redefining society and business at large, namely, demographic changes, the machinations of global trade, and the increased digitization of information, there are new areas of business and science being developed as we speak. Even with the new technology tools that are the focus of this text, however, it is important to note that the evolution, iterations, and developments of accounting and financial services are not necessarily new; the tools have continued to change rather than the goal of the tools themselves. With every new development, however, comes the proverbial push and pull of innovation and regulation; blockchain, cryptoassets, and artificial intelligence are not exempt from this market reality. These dynamics, specifically as the relate to the accounting profession, represent forces and changes that must be acknowledged and addressed in a proactive manner. Accounting professionals seem to be aware of, from the number of articles and discussions focused around the emerging technology space itself, but action steps still seem to be a work in progress. Even with the legislative and regulatory steps taken by the AICPA, the FASB, and even the SEC (via approval of ETFs), there is substantial work yet to be performed for practitioners to keep abreast and in pace with these technological changes (Fig. 2.1).