THE IMPACT OF DIGITALIZATION ON THE TRANSFORMATION OF THE ACCOUNTING PROFESSION

Abstract

Accountancy has traditionally been a profession in demand on the labour market. Interest in the accounting profession remains high among students and employers. However, with the digitalisation of the economy and the automation of routine processes, the content of the accountant's professional activity is changing significantly. These changes are defining a new profile for the accounting professional. Accountants now support organizations in adopting digital systems and integrating financial technologies into daily operations. This technological transition also influences the soft skills required in the profession, including communication, adaptability, teamwork, and problem-solving — competencies essential for translating digital data into meaningful insights for managers and stakeholders. The aim of this study is to investigate how digitalization reshapes the professional competencies required of accountants, focusing on the interaction between soft skills and digital capabilities, and to validate these trends using empirical evidence from the Latvian labor market. The results show that while automation reduces routine tasks, it amplifies the need for accountants capable of analytical thinking, effective communication, and digital literacy. Employers strongly emphasize education, prior experience, English proficiency, and problem-solving abilities.