The Future of Technology for CPA Firms

Source: Journal of Accountancy

The Journal of Accountancy asked a panel of distinguished technology experts to identify key technology trends CPAs should follow closely over the next 10 years. Here are some of the highlights:

• In what's known as “pervasive computing,” CPAs increasingly will rely on smartphones, tablets, and other mobile devices to communicate and to access cloud-based applications and data.
• More robust business intelligence and data analysis tools will become available, and relationship management and content management tools will grow in importance.
• Most data entry and aggregation will be automated and tax preparation and other lower-margin services will become commoditized, pushing CPAs into “higher-margin, knowledge-based jobs.”
• CPAs will receive real-time information that will support better real-time business decisions.
• Firms should embrace employee use of personal devices for work, which can lead to more satisfied employees. Firms will need to take steps to reduce security risks while enhancing the benefits of allowing employees to use these devices.
• One expert believes that “the term ‘software' will go away as customers instead pay for access to applications, data, and other resources.” Another predicts that “transactions will record themselves, using logical and database references to assign account numbers” and that “as the recording of transactions becomes more automated, the focus of accounting software will shift to analyzing trends and improved reporting.”
• Several experts expect integration between different software applications to improve.
• Social media sites will grow in importance, serving as “essential parts of the CPA's work tool kit in the years to come.”
• Some experts believe that CPA firm websites will need to be client portals. Others believe that CPAs should shift from static websites to “customizable sites with up-to-date content, including videos and blogs.” Firms should also take steps to make their websites more useful on mobile devices.

For the complete article, read “Technology and CPAs: Visions of the future.”

From Journal of Accountancy, American Institute of Certified Public Accountants, June 2012, http://www.journalofaccountancy.com/Issues/2012/June.