How CPA Firms Will Change

Source: Journal of Accountancy

The accounting profession was transformed in the 1980’s by technology, which changed not only how, but what CPAs do. Much of the basic work done by CPAs throughout the 20th century is now done by the clients, allowing CPAs to deliver other, higher value, services such as strategic planning, litigation support, business valuations, and technology consulting. CPA’s training regimens have also changed, from technical matters to the inclusion now of soft skills in leadership, management, and business development. Now there is a mini-revolution created by Sarbanes-Oxley, which has inverted the trend away from audits and sent the profession back to where it started.

Technology will continue to change the CPA firm over the next 10 to 20 years. Specialization will become even more important. Small firms will operate globally. CPA firms will operate in a virtual world, needing offices only for client meetings.

CPAs will operate in real time. Instead of correcting past reports and records, they will correct errors as they are made. Advisory work will also be done in real-time using dashboards to monitor the clients’ accounting systems and overall business strength. Using XBRL software will so automate business’ record keeping that information will flow directly into tax returns.

The CPA firm 10 years from now will have more minorities and more women in leadership, and more flexible work schedules for work/life balance.

From Journal of Accountancy, October 2005. For the complete article, click on the following link: http://www.aicpa.org/pubs/jofa/oct2005/myers.htm.