Are You Realizing an Adequate Return on Technology Investments?

Source Accounting Today

Investments by CPA firms in technology, including telephone systems, maintenance, and training fell from about 6 percent in 2002 to about 5 percent in 2004. Investments in document management systems may cause it to increase this year.

• Successful technology spending requires:
• Defining the problem to be solved before deciding on which system will best deal with
  the problem.
• Determining the return on the investment—is the new system worth the cost?
• Implement training not only on the new technology, but on any other system it
  may affect.
• Get buy-in from everyone who should use it. Technology will not solve problems unless ineffective processes are also corrected.
• Do a post implementation analysis to determine whether the system is providing the intended benefits.

For document management systems, firms should consider whether their new systems can be more economically hosted by outside parties instead of investing in new hardware.

Remote access is an attractive feature of many systems for CPAs. But it can only work with a wireless router. In the near future, wide area wireless access will allow connection wherever there is a signal (like cell phones operate).

From Accounting Today, October 24, 2005 For the complete article, click on the following link: http://www.webcpa.com/article.cfm?articleid=15851&;pg=acctoday.