Today's Technology for Tomorrow's Firm.
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34 June/July 2015 • www.CPAPracticeAdvisor.com BRIDGING THE GAP By Jim Boomer, CPA.CITP Is Your Firm Ready for Automation? In Januar y 2014, Te Economist publ i shed a n a r t ic le t it led " T he future of jobs: Te onrushing wave." In a sidebar to that article, a study was referenced that indicated a 94% probabi l it y t hat computer ization would lead to a loss of accounting and auditing jobs w ithin the nex t two decades. W hether this predic- tion becomes reality or not is up to u s . We mu st embrace new tec h- nology and prepare for the impacts automation will have on our profes- sion in the near future. The Machine Tis proliferation of technology and a u t o m a t i o n h a s r e g u l a r l y b e e n referred to broadly as the machine. Ma ny use t he ph rase t hat we a re racing against the machine. How - e v e r, t o c a p i t a l i z e o n t h e v a s t o p p o r t u n i t i e s t h a t t e c h n o l o g y presents now and in the future, we must embrace automation and build s t r ate g ie s to r ac e a lon g s ide t he machine. T hat w i l l li kely mean a c ha nge i n ser v ices a nd bu si ness models for traditional CPA frms. In other words, we have to start ident i f y i ng a nd of fer i ng ser v ices that move us up the value chain with our clients and start living up to the label of Trusted Business Advisor. Ma ny f i r ms st i l l rely on t ra nsac- tiona l and compliance-based ser- vices. Several of these services have already become commoditized and those that haven't will become so in the coming years. Tis opens us up to the very real risk outlined in the Economist article, being replaced by a computer. Focus on What Humans Are Good At More and more computers are doing those things at which they are good. Tey are automating tasks that are repetitive and can be systematized by an algorithm. On the other hand, humans are lef with the duties that t he y do be s t . T hose t h i ng s t h at require professional judgement and ex pertise. A nd, fortunately, those are also the things on which clients place the most value and are willing to pay. Flip the Risk to Opportunity Today, we can accomplish amazing things by simply taking a picture of a document w ith our smartphone and leting a mobile app do many of the tasks that were, frankly, a waste of ou r t i me . T here i s a g row i ng i nterest i n automat ion tools l i ke ex pense repor t i ng , bi l l pay ment, electronic signature and even gen- erating a simple ta x ret ur n. I f we ignore these technolog y advance- ments, the predication in the Econo - mist will likely come true. On the ot her ha nd, i f we embrace t hese tools and let them do the tasks for which they are made, we have the opportunity to use our time, energy and focus to act as a true advisor to our clients Become a Hero Even though these automation tools are gaining traction, there is still a large number of people that don't recognize the benefts or don't even know about them. A fer all, most of them replace a small task that, at frst glance, doesn't seem that impactful to automate. However, when you do i t r e p e a t e d l y, t h e t i m e s a v i n g s qu ick ly add up. Ta ke a n ex pense report or obtaining a signature for example. Many don't see either task as overly cumbersome to do manu- ally. But when you scale the process, the small increments of time savings quickly turn into a big number. Automation will not only free up time to focus on higher value work but you also can become a hero to your clients and co-workers. We are hearing from CIOs about the praise they are receiving in their frms afer t hey've i nt roduced t hei r CFO or controller to automation tools. Cli- ents are also most appreciative when you give them back some of their most precious resource – time. Don't let yourself get into a race against the machine, you will likely lose and turn the 94% probabilit y i nto re a l it y. But i f you embr ac e automation and build a strategy to run alongside the machine, you'll set your f irm up for grow th, increase proftability and maintain relevance into the future. 3 4 J u n e / J u l y 2 0 1 5 • w w w . C P A P r a c Jim Boomer is a shareholder and the CIO for Boomer Consulting , Inc. He is the director of the Boomer Technology Circles™ and an expert on managing technology within an accounting frm. He also serves as a strategic planning and technology consultant and frm adviser in the areas of performance and risk management. In addition, Jim is leading a new program, Te Producer Circle, in collaboration with CPA2BIZ and the AICPA. jim.boomer@cpapracticeadvisor.com T he opportunities for automation created by advances in technology are greater than ever before and this is changing the expectations of clients, employees and partners about how they exchange data with your frm. It will also continue to have a major impact on the entire accounting profession as we know it today.