Last updated on January 16th, 2023
The advent of spreadsheets changed the way accountants work, letting them quickly analyze data sets, track payments easily and forecast results. Now, with the emergence of cloud technology, accounting and CPA firms are heading for another shake-up.
Hiring accountants to file tax returns is not an attractive business model anymore. Today, CPA firms want their employees to produce greater profits to replace compliance work. Cloud technology can be the solution.
Since these programs are an intrinsic part of the businesses’ IT systems, they offer numerous opportunities for the savvy. Accountants can leverage their expertise for higher-margin, skill-based roles such as information analysis and consulting to maximize the advantages of cloud technology connecting to the core of accounting programs.
Here are some advantages technology offers for accountants and CPAs.
Expand professional network
A few years ago, doing business in a foreign country was a big undertaking for small businesses like CPAs and accounting firms. Today, with the evolution of digital technology, the whole world is easily accessible. Even the smallest firm can expand its services on a global scale.
Technology plays a vital role in the planning of accounting firm’s growth which further helps them reach a larger audience. One of the common factors running throughout all the successful CPA firms is that cloud technology pulses through the heart of them.
It has allowed them to reach the whole new range of clientele. The firms who are digitally engaging their clients to be it through email marketing, online advertising or social media are the ones being highly successful.
Focus on core business for profitable growth
Bookkeeping or data entry has always been and crucial but a time-consuming task which requires more focus. Evolving technology is rapidly changing the way accounting firms work by streamlining such processes. Firms no longer need employees to keep a track of their financial data. This enables businesses to focus on their core competencies.
In periods of rapid growth, various back-end tasks have increased which need a high expenditure of resources. By allocating more resources to get the secondary tasks done, businesses have less money to offer quality services. Technology frees up these resources so that CPA firms can use them where it counts.
With cloud accounting, data can be integrated in real-time which allows businesses to search, aggregate and create reports whenever required. It has resulted in the improved focus on core competencies, greater agility, and improved information through attention to control and process.
Keeping up with the change
Running applications like QuickBooks online rather than on-premise – is one of the biggest technology developments in the past 10 years in the accounting industry. According to a survey report by Robert Half Management Resources, more than 2,000 US CFOs believe that rapidly changing technology has become the biggest source of pressure in Accounting and Finance.
Today’s technological developments have surpassed the thought of desktop-based software and outdated financials. The ability to take advantage of the latest in cloud-based technology with the help of platforms such as QuickBooks Hosting has completely changed CPA and accounting firms.
For example, the cloud has transformed the way business-to-business consultation work as regular visits were usually implied as means of connection between a CPA and the client. But cloud allows feeds to become integrated in real time which both accountant and the clients can view or edit.
A survey conducted by Accounting Today shows the number of firms that will implement cloud accounting in 2017 or that have already implemented.
All these changes come with complimentary prospects for forward-thinking professionals.
In the nutshell
Stakes have never been higher for accountants and CPAs. Fortunately, updated technology provides numerous opportunities to play a bigger role in the overall transformation of the firm’s growth. Organizations that find ways to make use of cloud and digital tools would drive increased productivity, great performance and steer the firm’s innovation.
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