Today's Technology for Tomorrow's Firm.
Issue link: https://cpapracticeadvisor.epubxp.com/i/825759
MAY 2017 ■ www.CPAPracticeAdvisor.com 33 to cloud computing will continue to be among important tech trends for accountants to watch. "We're see- ing broad pickup in cloud services and other emerging technologies," Asgeirsson said in a recent news release describing results from a recent survey by CPA.com and the AICPA's Private Companies Practice Section. "The next wave that leads to greater productivity and capa- bilities for advanced firms is fuller integration of these technologies and the elimination of bottlenecks in work processes." The 2016 National Management of an Accounting Practice survey found that the use of cloud services by CPA firms has grown since 2014, with 56 percent of all firms sur- veyed saying they use cloud-based software, up from 48 percent in 2014 and 29 percent in 2012. Asgeirsson noted that cloud computing has helped turn client accounting services into a high-margin, high- growth line of business for many firms. However, other research on cloud computing has identi- fied the technology as even more pervasive across all industries. Some 90 percent of respondents in the Future of the Cloud Computing Survey reported they use the cloud in some way. The survey also found that software-as-a-service (SaaS) is the most popular cloud technology, with 7 in 10 companies indicating they use it in some way. Cloud computing has implica- tions for accounting firm growth. Research by Xero recently found that accounting and bookkeeping firms that are "all in" with the cloud (i.e., with the highest concentration of clients using cloud accounting software) have higher growth rates than firms that are not "all in." Given that cloud computing makes it easier for staff to work from any- where, it can also impact the ability to recruit and retain staff. The CEO of Accountingfly, an online career center for accountants, recently reported that job opportunities listed as "remote" see seven times more applicants than traditional in-house CPA positions. 3 ADVANCES IN AUTOMATION While artificial intelligence and data analytics may provide huge oppor- tunities for audit, tax and client accounting services in the future, a prerequisite to widespread use will be the continued automation of data inputs, according to Asgeirsson. In auditing, for example, there's a lot of inefficiency in gathering the audit evidence. However, automating this process can generate complete data sets that analytics can be run on and ultimately, artificial intelli- gence can be applied to. Similarly, automating more of what is put into client accounting systems (such as expense reports), can pave the way for use of more sophisticated technologies for analysis. For example, Sageworks' Elec- tronic Tax Return Reader allows accountants to quickly import business information, financials and real estate data from tax returns produced directly from a tax package. Thought leaders such as McKinsey & Co. expect certain activities that commonly occur in accounting firms, such as data collection and data processing, will increasingly become automated. In fact, the firm estimates about 60 percent of all occupations could have 30 percent or more of their basic activities automated. As automation replaces these repeti- tive or routine tasks, employees will be able to spend more time on tasks that utilize abstract skills such as problem-solving, creativity and relationship-based persuasion. For example, accountants using some software solutions can auto- matically import business informa- tion, financials and real estate data from tax returns produced by a tax package and then analyze the data so that the accountant can move on quickly to offering advice related to the findings. ■ Mary Ellen Biery is a research specialist at Sageworks, a financial information com- pany that provides financial analysis and valuation applications to accounting firms. R E N D S C O U N TA N T S C H I N 2 0 1 7