Skills for entering the Metaverse - yes, accountants need them too

Skills for entering the Metaverse - yes, accountants need them too

As businesses begin exploring the metaverse—a new, immersive virtual reality—accountants are facing a pivotal question: how do we prepare for a future where finance happens both in the real world and the virtual one?

With significant technological advancements on the horizon, the metaverse could soon reshape traditional business models, making it essential for accountants to acquire new skills to navigate this evolving landscape.

The metaverse, powered by blockchain, decentralized finance (DeFi), and non-fungible tokens (NFTs), is more than just a playground for tech enthusiasts. It’s a virtual realm where businesses conduct transactions, buy and sell assets, and even set up virtual offices. For accountants, this creates a new set of challenges and opportunities that demand forward-thinking skills development.

The Role of Blockchain and Digital Assets

At the heart of the metaverse is blockchain technology, the decentralized ledger that underpins cryptocurrencies and NFTs. While blockchain offers benefits like transparency and tamper-proof recordkeeping, accountants need a deeper understanding of how to audit and account for transactions in this digital ledger. “Blockchain technology will be central to how companies manage financial reporting in the metaverse,” says Jonathan Levy, Director of Product Development at the ICAEW.

Accountants will need to develop skills in blockchain analytics, which enables the tracking and verification of transactions across decentralised networks. This involves not just understanding how to read a blockchain but also mastering tools to audit decentralized platforms, ensuring financial integrity across these new environments​.

In addition, with digital assets such as NFTs gaining value, accountants must get comfortable with accounting for these unique assets. “NFTs challenge traditional notions of value because they are not fungible like traditional assets,” notes Garrett Wasny, a digital skills advisor. “Senior accountants will need to rethink how to apply standards like IFRS to these emerging digital assets”.

Navigating Smart Contracts and Automation

The metaverse relies heavily on smart contracts—self-executing contracts that trigger transactions once specific conditions are met. While these contracts can streamline operations, they also raise complex issues for accountants when it comes to revenue recognition and auditing. For example, a smart contract might automatically transfer funds once a product is delivered in the metaverse, leaving accountants to determine when revenue is realised.

To adapt, accountants will need to understand the fundamentals of coding smart contracts and the technology that drives them. While you don’t need to be a full-fledged programmer, basic literacy in decentralised platforms and contract automation will be crucial for verifying transactions and ensuring compliance​.

Additionally, smart contracts bring new risks, such as potential errors in contract code that could trigger unintended financial consequences. Auditing such contracts will require specialized tools and expertise.

Developing Data Analytics and AI Competence

The volume of data generated within the metaverse will be staggering. To stay competitive, senior accountants will need to shift their focus from manual data entry and reporting to mastering data analytics and artificial intelligence (AI). “As automation increasingly handles transactional tasks, accountants must step up to higher-value activities like interpreting real-time data and offering strategic insights,” explains Levy. ​

Data analytics can help accountants provide clients with deeper insights into financial performance in the metaverse. For instance, AI-powered analytics tools can track market trends, flag risks, and even predict future financial outcomes in a virtual economy. Visualizing this data in ways that senior executives can understand will become a key differentiator for accountants who want to position themselves as forward-thinking advisor.

Soft Skills for Virtual Engagement

While technical skills are vital, accountants must also develop new soft skills for engaging clients and teams in virtual settings. Virtual meetings, client consultations, and collaborations in the metaverse will likely involve avatars and digital representations, requiring accountants to adapt to new communication norms. Building rapport with clients in virtual offices will demand a blend of emotional intelligence, adaptability, and an understanding of how to navigate immersive environments​

“The human side of accounting will become more important than ever,” says Wasny. “Accountants will need to focus on creativity and strategic thinking, which are skills that machines can’t replace.” As automation takes over more manual tasks, senior accountants will be expected to step into leadership roles that involve guiding clients through strategic decisions in the virtual world.

Staying Ahead of Regulatory Changes

The regulatory environment for the metaverse is still in its infancy, but accountants will need to stay on top of changes to remain compliant. As virtual assets like cryptocurrencies and NFTs become mainstream, tax and reporting standards will evolve, creating a need for ongoing education in this area. “The challenge lies in applying existing financial regulations to decentralized and anonymous transactions,” notes Paul Gilmour, a researcher in cybercrime and economic crime​.

By staying ahead of regulatory updates and understanding the nuances of virtual transactions, accountants can guide their clients in managing risks while capitalizing on new opportunities.

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Skills for entering the Metaverse - yes, accountants need them too - Accountancy Age