Over subsequent centuries, accounting has evolved into a recognized profession with the Industrial Revolution having a significant influence.
Large companies that emerged during this period had to account for external funding and carry out complex financial forecasts. This, in large part, drove the demand for professionals with specialized knowledge, including a solid understanding of the relevant laws.
The first professional accounting bodies were established in the 19th century, beginning with the Institute of Chartered Accountants of Scotland in 1854. The Institute of Chartered Accountants in England and Wales was founded in 1880 -- followed by the American Institute of Certified Public Accountants in 1887.
Under these organizations, ethical and technical standards were created for accountants and ensured that those entering the profession had the necessary qualifications and training. The first accounting examinations and designations emerged soon after, including the FCA (Fellow Chartered Accountant) and ACA (Associate Chartered Accountant).
On Sunday, November 10, the world celebrated how far the profession has come, particularly reflecting on what the future holds.
With the advent of technology and the increasing complexity of global finance due to the likes of Pillar II reporting, accountants are set to take on even more critical roles in the years to come.
"International Accounting Day is all about promoting the accounting profession. It seeks to give people the opportunity to network among their colleagues and aims to provide the opportunity to continue education for those interested in the industry," said Christian Munyabitabo, Founder and Managing Director at M&C Consultants.
Munyabitabo is among the young entrepreneurs who, in 2014, founded the consulting firm in Rwanda. Based in Kigali, M&C Consultants prides itself on being a one-stop center for key services including auditing, tax advisory, accounting, and business advisory.
"In Rwanda, the accounting profession continues to grow leaps and bounds courtesy of ICPAR (regulatory). Today, we reflect on the journey but more importantly, integrate new solutions that will propel the profession further."
Where Rwanda stands
The Institute of Certified Public Accountants of Rwanda (ICPAR) was established in 2008 by the Rwanda Government to promote the development of the accountancy profession, ensuring that it meets international standards.
ICPAR is the body responsible for the regulation, oversight, and professional development of accountants in Rwanda. It grants the Certified Public Accountant (CPA) and the Certified Accounting Technician (CAT) designation to qualified individuals and provides ongoing education and support to help professionals meet the evolving demands of the industry.
"Happy International Accounting Day! Today, we celebrate the dedication, integrity, and expertise of accountants who play a vital role in driving transparency, accountability, and economic growth. At the Institute of Certified Public Accountants of Rwanda (ICPAR), we honor the commitment of professionals who uphold these standards daily, fostering trust and financial stewardship in our communities. Here's to the accountants who continue to shape the future!," ICPAR noted in its message.
Official numbers indicate that the current CPA and CAT Ongoing Students is 6,921 (both Certified Public accountants as well as the Certified Accounting Technicians) having graduated over 1500 professional accountants.
The Institute currently has 1,127 members, reflecting the urgent need for more certified accountants in the Rwandan market.
However, in a bid to increase the numbers, ICPAR says it is leveraging on technology to ensure its qualifications are globally access and hence currently developing its Computer Based Exams system as well as the Learning Management system.
The Institute has 2 primary qualifications; CAT and CPA and just introduced the Public Sector Financial Management Certificate (PFM) for the Public Sector financial management staff.
ICPAR also works closely with the Rwanda Revenue Authority to ensure that there is a pool of professional tax advocacy.
ICPAR supports the national efforts in fighting against Anti Money Laundering and counter-terrorism financing by carrying out inspections among its member firms to ensure they are advisors as well as a clear understanding of tax policies and practices by the Institute members and stakeholders.
What the future holds
Cloud-Based Accounting Solutions
Cloud-based accounting solutions continue to transform the profession, allowing businesses to access real-time financial information from anywhere in the world, making it easier for accountants to collaborate and provide up-to-date advice.
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Automation and Artificial Intelligence
One of the most significant changes in the profession is the rise of automation and artificial intelligence (AI). Tasks that once took hours -- such as data entry, reconciliations, and financial reporting -- can now be done in a matter of minutes using AI-driven software.
While some may fear that automation will replace accountants, the reality is that these technologies are designed to assist, freeing them from repetitive tasks so they can focus on strategic activities. Such innovations also increase accuracy, reducing the time spent on correcting errors.
Data Analytics
As businesses generate more data than ever before, accountants are increasingly relying on analytics to make sense of financial information. For example, analytics can assist with identifying trends, forecasting financial performance, and pinpointing potential risks or opportunities more effectively.
Accountants of the future will be expected to have strong analytical skills to interpret and apply data-driven insights.
