The landscape of CPA firms has seen significant transformations within the past few years. As workforces evolve, accountants may encounter unique challenges, hence the need to stay ahead. Whether it’s managing remote teams or optimizing marketing strategies, technology is at the center of every business.
Keeping Up with Technology
Technology is evolving rapidly, so your business needs to adapt accordingly. Clients expect their CPAs to leverage the latest, most advanced technology. Old technology not only slows down operations but also projects an outdated image of your firm.
Several types of accounting technologies are worth exploring. Remote workforce management software, for example, can make your firm more competitive by attracting top CPAs. CPA data analytics can help you predict outcomes and make intelligent decisions.
How can you keep up with the latest accounting tech trends? It may require some effort but will pay off in the long run. Assign someone in your firm to actively research technology and stay current with new concepts. This guarantees that you don’t miss out on innovative ideas.
Several resources provide the latest accounting news. Depending on your firm’s goals and time available for research, consider subscribing to these industry resources and experts:
- AccountingWEB
- CPA Practice Advisor
- Accounting Today
- Insightful Accountant
- The Journal of Accountancy
Promoting Client Usage of Customer Portals
This strategy combines the previous two points. Studies show that nearly half of all clients prefer self-service rather than direct interaction with a representative. Customer-facing technology keeps your business ahead of trends while drawing in new clients. However, that’s not as simple as just setting up a self-service tab on your website.
In the CPA industry, client portals usually integrate client feedback with your services. These portals facilitate file-sharing and improve client communication. However, navigating client portals can be challenging for some, so be sure to provide sufficient guidance to ensure ease of usage.
To promote effective customer portal use, select an accounting document management software with a user-friendly interface. Provide ample support resources on your website, such as how-to guides, FAQ sections, and instructional videos. Also, ensure a staff member is available to assist if clients encounter difficulties. Features like a live chat box and easy-access contact information can prove invaluable.
Finally, make sure your existing clients are familiar with your new portal. Discuss with in-office clients about the platform’s benefits and send your clients an email with links to these new technologies.
Ensuring Cybersecurity and Data Privacy
Cybersecurity for CPA firms is more critical now than ever before, given the surge in hacking and data breach incidents. These can be catastrophic, potentially causing companies to lose millions. Most cybersecurity attacks on CPA firms aim to steal customer data, such as bank accounts and social security numbers.
Scammers employ various methods to steal crucial data. Some exploit weaknesses in your website or software to hack into your systems. Others use sophisticated phishing scams to trick your employees into revealing their passwords.
Several MFA threats involve viruses and malware as well. An employee might unknowingly download keyloggers that secretly collect passwords by visiting an unsafe site. Ransomware is another growing threat in which hackers shut down your entire system and demand a ransom to restore your data.
To avoid these significant threats, proactive measures are crucial. Here are some industry suggestions to ensure you’re meeting your basic cybersecurity needs:
- Set computers to require secure passwords.
- Ensure automated software updates as they become available.
- Set up a CPA data analytics system to identify potential vulnerabilities.
- Regularly assess your system and update security protocols as necessary.
- Run mock attacks to test your team’s response to breaches.
- Limit employee access to data as per their job requirement.
- Implement multi-step identity verification for remote workforce management.
- Enforce strict cybersecurity rules and penalties for employees who violate them.
- Conduct company business on secure company devices only, not personal laptops or smartphones.
- Create multiple data backups and store these in a separate network.
Being Overly Cautious About Automation and AI
In many CPA companies, employees perceive automation as a threat. They fear clients will abandon traditional services for cheaper, albeit less reliable automation software. However, accounting technology can instead serve as a valuable tool.
Automation offers several benefits such as:
- Reduced chances of errors due to typos or incorrect data entry
- Allows employees to focus on building strong client relationships rather than mundane tasks
- Easy scalability as your business grows
- Lowers the risk of employee burnout
- Provides quick access to CPA data analytics
Enables monitoring staff for carelessness or fraud
Achieving these benefits typically involves integrating automation into your firm through specific software applications. For example, an accounting document management system can automatically scan and categorize files based on specific keywords. Programs that assist with tax write-ups can also help relieve the workload during tax season.
Ensuring Workplace Efficiency
Did you know that many companies waste valuable time by sticking to outdated practices? While the prospect of revamping processes for efficiency can seem daunting, the long-term benefits outweigh the initial effort. CPA firms can easily become inefficient as tasks that appear straightforward may become unnecessarily complicated with an increase in clients.
Improving efficiency involves carefully evaluating your company’s needs, analyzing workflows, and identifying more effective ways to serve clients. Although introducing more efficient procedures can take time, the result is a smoother-running workplace. With less time wasted, your employees can focus on satisfying clients’ needs and attracting new business.
CPA data analytics can play a significant role here. Smart software can analyze your company’s operations and intuitively pinpoint areas for improvement. For instance, your accounting document management system might require optimization. Accounting document management software can help you better tag and organize files for quick, easy access to client documents.
Here are more ways to improve workplace efficiency:
- File documents as soon as you receive them to avoid a backlog.
- Opt for quiet workplaces as opposed to open-concept offices.
- Equip dedicated accountants with stationery and printers to handle paper documents.
- Convert documents to OCR format, allowing you to use the “control F” function to search for relevant phrases.
- Take notes during all meetings to prevent forgetting crucial details. AI can facilitate this.
- Adopt cloud-based accounting technology for multi-device data access.
- Prioritize tasks and tackle higher-priority ones first.
- Allocate a specific time block each day to respond to emails and call clients.
Optimizing Equipment Usage
Some CPAs mistakenly believe that a computer is all they need to operate. While much of modern CPA work is conducted on computers, other types of equipment are still essential. Overcoming this mindset will ensure that your office is equipped with the necessary tools to facilitate your employees’ tasks.
The right equipment saves your employees’ time and enhances productivity. For example, accountant stationery and printers can help manage and streamline your document production process. Actively managing your equipment, as opposed to passively using whatever is available, can yield significant benefits.
Conclusion
Though the CPA field continues to expand, fewer young people are pursuing this career. The impending retirement of long-term employees is creating a shortage in the industry. In the next five years, experts predict a drastic decline in available CPAs, which could affect firms’ ability to meet service demands.
