The impact of new technologies and the ability of accounting to adapt to the rapid pace of change, are two of the biggest challenges facing CPA’s and accountancy professionals today, and both issues will need to be faced head on over the coming months and years.
In broader terms, developments and advancements in technology are having an impact upon both society and the economy and are helping to change the way we all conduct business and our lives. Data automation and artificial intelligence are bringing what some have coined as the ‘Fourth Industrial Revolution’ or ‘Transformation Economy’, causing widespread changes to the demands of clients, employment practices and how businesses are run. However, there is no doubt that technological developments will have a very specific impact upon accountants and CPA’s.
How innovative technologies are changing the accounting profession:
Data analytics, artificial intelligence, robots and drones are all going to have a significant impact upon the profession of accountancy, from audit, accounting, tax or advisory; all disciplines will be affected. In fact, they are likely to see the biggest changes since the passage of the Securities Act of 1933 and the Securities Exchange Act of 1934.
With the potential for new technology to commoditize primary services like bookkeeping and tax preparation, there is also an increasing chance that the entire role of accountants and CPA’s will require a radical overhaul, or reshaping at the very least.
How can outsourcing help accountants and CPA’s cope?
With AI, blockchain, cognitive computing and even more mainstream technologies such as cloud computing and social media transforming what accounting professionals do and what they need to know, there is a growing need for practices to learn these new skills simply to stay afloat. One way that some accountancy and CPA practices are trying to adapt to these changes, is by outsourcing their work to countries like India. What you might not know, is that India’s digital and tech sector is brimming over with highly qualified, innovative and dedicated young professionals, all keen to work hard to help overseas businesses succeed, and with many of them working in accountancy, they are filling a niche that many others struggle to fill.
So, while outsourcing has the obvious advantage of being able to reduce back office tasks and enable busy CPA’s and accountants to focus on other elements of their work, it can also give them a competitive technology edge over other accountancy firms, and help to keep them up to date with the times, or better yet, ahead of them.
If you’re concerned that your CPA practice may be falling behind when it comes to technology, it might be worth considering outsourcing to a country like India, where costs can be kept to a minimum and experienced and dedicated professionals make use of the latest advancements and techniques related to technology.