L. Gary Boomer of Boomer Consulting in Manhattan, Kansas, says new technology can be so exciting that accounting firms may be too quick to invest in it. At the other extreme, they can be so complacent that they ignore them. Firms should, instead, make their decisions based on the realistically projected return on investment. Investing too early can reduce the return. Waiting too long can also reduce the return by causing the firm to be non-competitive.

In the next five years, technology will significantly change the use of telephones, facilitate the submission of data by clients, see replacement of desktop computers with WebTop computers, and enhance the ability to utilize real-time information.

Firms will need more than electronic files. They will need content management systems to manage and retrieve data.

Clients increasingly want real-time information, but many accountants resist it because instant information is of no value if it is inaccurate. But the trend towards real-time data is apparent. "Now is the time for firms to step up and control the client portal," says Boomer.

For 2006 and 2007, he sees the following priorities:

• Content management systems that include portals.
• Using technology to increase revenues per FTE.
• Consolidation of data bases.
• More automated financial reporting.

From Accounting Today, April 3, 2006, SourceMedia Inc., One State Street Plaza, 27th Floor, New York, NY 10004.