Come the revolution

At their broadest, developments in technology are having society- and economy-wide effects that will change the way we all conduct business and our lives. “Massive shifts in technology like data automation, blockchain and artificial intelligence are ushering in what some are calling the ‘Fourth Industrial Revolution’ and others (perhaps more accurately) are calling ‘the Transformation Economy,’” explained Joe Woodard, chief executive officer of Woodard Events and the organizer of the annual Scaling New Heights technology conference.

That will mean widespread changes to client demands, employment practices, and how businesses are run, but those technologies will also have very specific effects on accountants.

“The introduction of data analytics and innovative technologies, such as artificial intelligence, bots and drones, provides the opportunity for the greatest change in the accounting profession since the passage of the Securities Act of 1933 and the Securities Exchange Act of 1934,” explained D. Scott Showalter, chair of the Federal Accounting Standards Advisory Board, and professor of practice in the Poole College of Management at North Carolina State University. “No matter the discipline, whether audit, accounting, tax or advisory, all will be affected by these innovations.”

“The relevancy of the accounting profession in the next decade will be largely impacted by how capable we are at visualizing and harnessing the potential benefits of new technology, and how willing we are to make the changes necessary to take advantage of the enhanced technology of tomorrow,” said David Vaudt, chairman of the Governmental Accounting Standards Board.

But while Vaudt saw this challenge playing out over a decade, others weren’t so sure there was even that much time. Citing the “exponential rate of change” that blockchain, AI and big data will bring to audit and accounting, IntrapriseTechKnowlogies managing director Donny Shimamoto warned, “Many accountants think it will be a slow change, but because it’s an exponential change curve, it will suddenly be here and people aren’t going to be ready. We need to start getting ready to use these technologies now by better understanding risk and controls (especially IT risk) and data analytics.”

Meanwhile, Janice Gray, vice chair of the National Association of State Boards of Accountancy, was concerned about limits on other relevant resources: “All of this change related to technology and artificial intelligence will affect small firms and require close monitoring,” she said. “With resources limited for small firms, it could affect their abilities to audit clients and thus further diminish the pool of auditors available to provide services to smaller clients in an economical manner.”

Despite widespread belief that advancements in technology represent a major challenge for accountants, there was an almost equally widespread belief that they could also offer solutions to many of the profession’s problems, and opportunities for significant growth.

That raised a red flag, however, for CPA Trendlines CEO (and former Accounting Today editor-in-chief) Rick Telberg, who warned against an over-reliance on non-human solutions.

“Too many firms are looking for solutions from new technology, software and apps, to the detriment of skills-building and process improvements that would better serve clients with broader and deeper services,” he said. “In short, firms are primarily using technology to reduce costs and increase productivity, instead of leveraging technology to get better at doing what clients want most — providing proactive insight, analysis and guidance. Technology can replace people, and it is; you can see it in hiring trends and in per-partner incomes. But technology cannot replace the judgment and wisdom that clients really want from their accountants. This techno-centric behavior is pushing aside the client-centric habits that have made accounting the great profession it remains today. The profession does so at its peril.”

The above was an extract from "The profession’s biggest challenges" published in Accounting today October 1st 2018. There is no doubt that there is an emphasis on technology as one of the main challenges however there are a number of other areas within a firm that need to be focused on. Envision exists to deliver the support and expertise that are essential to support and compliment the changes and challenges that technology brings

Step the 8 Dimensions of Envision™. Envision™ creates a deeper understanding of your firm, it’s component parts and the truly unique business critical issues that affect your success every single day. Envision™ will unearth your WHY.

The 8 Dimensions of Envision™, fundamental to the technology selection process, will help you clearly define your internal WHY. It’s that simple.

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