6 Emerging Challenges for CPA Firms in the Accounting Industry

No doubt technology changes the way that we live our lives not only that it changes the way that we do business and work. Today we will shed some light on the way the accounting profession has changed and what are those challenges CPA firms are facing nowadays. We will help you to overcome those challenges and we will tell you how to use technology to add value to your business career.

Modern day accounting requires a lot more than basic accounting tasks; to manage day to day accounting operations is a demanding task. It is quite essential to provide an accounting team with technologies/skills and training to keep up with the pace to manage the accounting for your business.

Are accountants or CPA firms still relevant? Yes, accountants are! But the accounting profession has definitely changed over time. The increased use of Cloud accounting made accountants more technical and confident to help companies make stronger and more effective business decisions. That is why modern day businesses prefer cloud based accounting systems like QuickBooks enterprise hosting that helps you reduce manual tasks and automate your daily accounting stuff.

CPA firms must adapt to the new challenges and changes and here we have a list of key challenges that an accountant or CPA firms face nowadays.

IT Knowledge

Accounting is going more and more technical to the extent that job security and stability will depend on how adaptable your firm is. Cloud-based accounting systems are being used at both the office and home and it helps accountants to develop a strong understanding of cloud computing, blockchain systems, automation software, artificial intelligence, machine learning, and other that can boost the CPA firm’s value in today’s industry.

Automation

Automation is another technology issue and it is related to automating some accounting and finance functions. Blockchain, python, and artificial intelligence will not replace accountants but can enhance their role. Using Blockchain, python, and artificial intelligence tools can help accountants and CPA firms solve problems and mitigate enterprise risks if they can successfully deploy and use them.

The Demand for New Skills

Getting the required skills, make accountants more valuable for CPA firms. The skills must not only relate to accounting standards and accounting software but skills must include understanding business requirements processes and customer behavior.

Nowadays, accounting is less about bookkeeping and more about data analytics and business analytics. Some of the other skills that play an important role are financial budgeting, financial forecasting, financial analysis, and working capital management. The more competent accountants are in these skills, the more value they will add to their CPA firms.

Continuous Changes in Tax Regulation

An accountant must be able to keep up the tax updates and also give attention to the tax changes and must be able to use a tax management system to handle tax online. Digital tax dealing and filing are growing globally, so it is important for accountants to be familiar with the tax authority’s requirements.

Competition and Cyber Security

CPA firms usually face competition within the accounting industry which leads the accounting department to be downsizing and shrinking in favor of external accounting services or you can call it outsourcing, hiring a permanent one is much more costly that’s why accountants may go for outsourcing. Accountants or CPA firms have to concentrate on their accounting technicality.

Cyber security is one of the biggest issues CPA firms are facing nowadays. Practice including hacking, and fraud incidents are increasing nowadays at rapid speed. So for accountants, the challenge is applying effective measures to protect data. A cyber attack caused many businesses to go bankrupt completely. So it’s the accountant’s duty to design a robust internal control system that is needed to protect their financial data from theft.

Applying the Best Accounting ERP

The best ERP solution is the one that lets you collect, visualize, and analyze data effectively. Before applying the ERP, consider these mentioned points first:

• Does the system have a trace and trailing function for data?
• Is the accounting software user-friendly, and easy to use?
• Does the system have many reporting facilities?
• Are there security measures enough to safeguard the data?

Final Words

A few decades ago, all an accountant needed was good bookkeeping skills. A firm would hire you and the only thing you had to do was manage the company’s books. However, if you want to become an accountant in the modern era, you will need to be tech-savvy. Familiarity with the modern day accounting methods and technologies is a must In today’s world to serve a diverse portfolio of clients.

You will also have to ensure that you have good decision-making skills because you will be part of major decision-making processes.