Today's Technology for Tomorrow's Firm.
Issue link: https://cpapracticeadvisor.epubxp.com/i/555302
August 2015 • www.CPAPracticeAdvisor.com 17 Te most accurate predictions are rooted in trends happening right now. Rather than extrapolate on what the future holds for accounting frms in 3015 (for example), I see a clear ben- eft in focusing on the near-future – 10 years from now in this case – to spot mea n i ng f u l t rends t hat f i r ms ca n embrace for long-term success. Fol low ing are three undeniable trends t hat w i l l hold considerable sway not only on consumers but also on accounting practices in 2025. Pervasive Connectivity W i t h b r o a d b a n d a c c e s s a n d e x p a nd e d c e l l p ho n e a nd W i - F i net works, we are nearing the point of seamless, continual and ubiqui- tou s con nec t iv it y. By 2 025, we' l l have achieved it. It w ill be a w ireless world, w ithout the rat-tails of coiling cables. Technolog y such as nation- w ide or cit y-focused net works and/ or Wi-Fi w ill trump dead zones, and the connection bet ween electronic dev ices w ill multiply and strengthen because of this. Internet-enabled dev ices beyond laptops, sma r t phones a nd tablet s (think watches and other wearable t e c h n o l o g i e s) w i l l b e c o m e t h e standard not the exception. Imagine your home telling you to change the air flter or reminding you to order more animal crackers. How does pervasive connectivity translate for accounting frms? For accou nt i ng f i r ms, t h is con- nectiv it y w ill spur an even stronger abilit y to practice w ithout borders. No more shoeboxes f ull of paper or driv ing to the client to rev iew docu- ments. Beter yet, prospective clients w o n't b e l i m i t e d t o a p a r t ic u l a r geographic area. Firms w ill transi- t i o n f r o m c o n s o l i d a t e d h u b s t o divergent models spread across more locations and w ith fewer employees in each location. Employees w ill be hired for their sk il ls, regard less of where they reside. Video w ill be even m o r e i n t e g r a l w i t h t h i s r e m o t e work force as a means to meet and collaborate. Omnipresent Mobility Om n ipresent mobi l it y isn't about hav ing a smartphone or tablet. It is the ubiquitous expectation that you can do whatever you need to do no mat ter w here you a re. T h i s st i l l- developing trend – which is inter- t w ined w ith per vasive connectiv it y – relies on hardware such as smart- phones, tablets and watches. Ye t , t h e r e a l p o w e r b e h i n d i t comes from cloud-based technolo- gies and applications and the abilit y to access and sync w ith sof ware and documents as needed. I f y o u t h i n k A m e r i c a n s h a v e u n h e a l t h y r e l a t i o n s h i p s w i t h smar tphones now, be prepared for 2025. T he f unctiona l it y of smar t- phones w i l l vast ly increase due to more i nterc on ne c t i v it y bet we en apps and numerous dev ices at home a n d w o r k . T h e f u n c t i o n a l i t y encompassed in the smartphone w ill pract ica l ly be g lued to ever yone's hands (or w rists or eyes). Mobile pay ments – the last barrier to true mobilit y – w ill have entered i n t o w i d e s p r e a d a c c e p t a n c e b y consumers in 2025. Consumers w ill fnally ditch the plastic and reach for their smartphones instead. How does omnipresent mobility translate for accounting frms? Practitioners w ill rely less on PCs and laptops and more on tablets or large smartphones. Tis technolog y w ill be productive as standards for W i-Fi- enabled veh ic les a nd ma ss transit evolve. Spurred by the need for increased m o b i l i t y, t h e c l o u d w i l l h i t t h e ma i nst rea m for accou nt i ng f i r ms a nd t he i r c l i e nt s b y 2 0 2 5 . I t 's a technolog y that perfectly suits the expectations of mobilit y, including increased collaboration and always- available access. Most i mpor ta nt ly, busi ness-to- b u s i n e s s e l e c t r o n i c a n d m o b i l e pay ments w ill reach the mainstream as wel l. Cl ients w i l l ba l k at check pay ments and demand the abilit y to pay more efciently at any time and from any dev ice – regardless of their location or the time of day. Paramount Focus on Security Ta r get . Home De pot . J PMor g a n Chase. Major data breaches in these orga n i z at ion s have elev ated con- sumer awareness and concern for the s e c u r i t y o f p r i v a t e o r p e r s o n a l i n for m at ion . C on s u mer s , fe d up w ith these breaches, are turning to the government to enact standards around the securit y of their personal information. Da i ly processes a nd habits t hat are the norm today w ill soon open p r a c t i c e s t o s i z a b l e r i s k s . F o r example, 25 percent of practitioners cont i nue to del iver ta x ret u r ns to their clients v ia unencr y pted email (S o u r c e : 2 01 5 A c c o u n t i n g F i r m Operations and Technology Survey). T is practice clearly ex poses f rms to unnecessar y risk and the potential for costly fnes. Government oversight w ill have e v o l v e d b y 2 0 2 5 , a nd m a nd a t e s sur round ing secur it y and compl i- a nc e w i l l b e c o me s t r i c t e r. T h i s includes the t y pe of information that is considered protected. Tere w ill a l s o b e s w i f t e r a nd mor e s e v e r e penalties lev ied against practitioners who store or transmit this informa- tion v ia unencr y pted or unsecured manners. H o w d o e s a m o r e p a ra m o u n t s e c u r i t y f o c u s t r a n s l a t e f o r accounting frms? T h i s p u s h t o w a r d i n c r e a s e d securit y w ill guide accounting frms t o s c r u t i n i z e t he i r p r a c t i c e a nd secure the data they hold on behalf o f t h e i r c l i e n t s . Aw a r e n e s s a n d technolog y w ill play critical roles in t h i s e f f or t . " L i a b i l i t ie s" s u c h a s paper-based processes and unlocked f ling cabinets that expose protected i n for mat ion w i l l be re-ex a m i ned. Most w ill be migrated to electronic pro c e s s e s , i n t he f or m of c lou d - based technologies including docu- ment ma nagement, work f low a nd bill pay ment. Te cloud w ill become a n especia l ly i mpor ta nt tool w it h regard to securit y since updates are automated a nd sec u r it y measu res that are required are already put in place. Prox y prac t it ioners w i l l be able to be in compliance w ith regula- tions w ithout hav ing to build their own technolog y fail-safes. Conclusion Te grow ing infuences of connec- tiv it y, mobilit y and securit y present a u n i q u e c h a l l e n g e f o r t o d a y 's prac t it ioners. I f you ig nore t hem, your practice could sufer. However, if you meet them head-on, you w ill have a hea lthy business tomorrow – a nd b e y ond . Ta k e t he t i me t o rev iew your current processes and technolog y to ensure you are set to meet and address these undeniable trends. THE GROWING INFLUENCES OF CONNECTIVITY, MOBILITY AND SECURITY PRESENT A UNIQUE CHALLENGE FOR TODAY'S PRACTITIONERS. SEEING THE FUTURE