Let’s face it, we are now in the golden age of relying on technology-based systems in operating our businesses and firms. These systems have helped a lot of us with sales and productivity over the years. While some employees and companies have adapted, others are still struggling with IT, especially those firms that, from the start, can independently operate without any help from any of these systems. For instance, CPA firms. The constant need for automated accounting processes has been a struggle to some accounting firms. Although it’s main purpose is to make work easier, these companies along with their employees are having issues with how to keep up with technology’s constant and drastic changes.
Here are 7 problems faced by accounting and CPA Firms when it comes to IT:
1. Lack of IT Literacy
The financial industry is now going online more than ever. The accounting profession has evolved to become increasingly technical. So much so that failing to use cloud technology could seriously jeopardize an accountant’s ability to maintain their current position. Cloud-based accounting solutions are more often used now than ever, both locally and remotely. Being able to use cloud accounting software and work effectively in a cloud environment is one of the main issues that accountants confront. Not everyone is tech savvy. The significance of collecting, storing, and analyzing financial data from various business applications is becoming increasingly important. A complete financial picture of the firm depends on defining which business tools must communicate with the accounting solution and what data must be tracked.
2. Automations in Accounting
To increase productivity, automations are now used in accounting. Being able to use more automated functions to increase the value of accounting procedures is one of the major issues facing financial professionals.
3. New Skill Requirements
Accountants must contend with a world that is far more linked in addition to increased technological demands and requirements for basic accounting knowledge. In particular, this entails improving one’s capacity for comprehending business needs, procedures, and even client conduct. Today’s accountant is more keen on data analytics than bookkeeping.
4. Financial Data Cybersecurity
Cybersecurity should be one of the main focus of the financial industry today as we are talking about sensitive data and money. As accounting businesses are continuously on the radar of cybercriminals, it is becoming more difficult for them to protect their data from hackers. The use of cloud services by CPA companies to keep their private data has made cybersecurity a significant concern for them.
CPAs won’t be able to protect their clients’ data if they don’t take proactive security steps like employing VPN services or antivirus software to defend their interests. This will eventually tarnish their company’s reputation.
5. Ever-changing Tax Laws
Keeping up with tax laws is a great struggle for accountants. Accounting professionals and CPAs at all levels should be aware of changes and capable of using tax management software and accounting technology to process taxes online. Accountants should therefore be knowledgeable about the underlying technology and operating principles.
6. The Rise of AI
Artificial intelligence is not here to replace accountants but to help them. Just about 2% of large companies have used machine learning or artificial intelligence, but approximately one in five say they intend to. Using AI can help with workforce shortages, automate laborious operations, and provide more meaningful data. The struggle is the adjustment from manually working on data to getting help from artificial intelligence.
7. The Cost
Another issue that has slowed the expansion of CPA businesses is the price decrease. It is exceedingly challenging for accounting firms to continue being cost-effective with the everyday availability of new and lucrative technology. Also, the intense rivalry is pushing companies to adopt new technologies in order to keep the business going.
Moreover, businesses must spend money on infrastructure, office space, digital marketing, hiring new workers, and running their day-to-day operations. So, it presents a difficulty for businesses to become cost-effective after bearing all of these charges.
One of the most significant occupations in the world is accounting. Businesses and economies would collapse in the absence of precise and trustworthy financial information.
Is your accounting firm struggling with IT? Tell us about your firm’s specific problems involving technology.
