By Maureen Renzi, vice president – communications

AICPA’s Interchange Conference is one of my favorite events every year. I get together with CPA state society colleagues from across the country to talk about the challenges we are facing, to share best practices, and to get insight into the profession. Technology and disruption were big themes this year. The most important thing I learned is that many “emerging technologies” have emerged, and that we are too busy to recognize the opportunities for business growth. I think accounting is one of the professions poised to benefit the most from these changes, if you can find the time to learn what is out there and apply it to your firm, your clients, or your company.

Barry Melancon, AICPA’s CEO, always conducts a popular town-hall-style meeting where he shares his insight into what is happening in the profession. Here are some of the technology implementations that could be game changers for the CPA profession:

• Consider the use of bots for accounts receivable reports. Melancon didn’t reveal the name of the firm, but he has witnessed how one firm is testing a bot that requires a human to set up a materiality notice in the beginning of the process. The bot reviews the files and develops a report of anything that may require a human to take a second look.
• For tax practitioners, waiting for 1099s and then amended 1099s before preparing investor returns is a primary pain point. Investment firms recognize the need for correct 1099s and are exploring the idea of giving away a free tax return to investors at a certain level. They are looking at the competition provided by individuals maintaining their own portfolios and investing online. Investment firms are taking an innovative approach to provide value as technologies emerge. If this comes to fruition, what percentage of your clients will go with the “free” return?
• Speaking of do-it-yourself money management, robo advisers are coming to help investors manage their accounts using complicated algorithms. The concept is being pitched as saving time and money. Many people believe plugging in numbers is all it takes to manage their funds. CPAs who have a practice in personal financial planning know that it’s much more complicated than an algorithm, but do clients and potential clients know that? Are you doing all you can to promote the value of a personal financial planner?
• Protecting data is a critical responsibility of CPA firms, as well as members in business, government, and education. Melancon equated cybersecurity as a growth opportunity for members. In fact, he equated the concern over information security as being as revolutionary as the audit in the 1930s. For those of you who require a brief history lesson, the Securities Act of 1933 and the Securities Exchange Act of 1934 were pieces of legislation that established the SEC and were the catalysts for establishing the independence of CPAs and independent audits. Does this analogy make sense? Is cybersecurity part of your long-range plan?
• Amazon is looking into using drones to accelerate delivery and reduce costs. Some companies are starting to employ drones to help with inventory counts and construction project management. Recently I spoke with Brian Wiest, a manager with the accounting firm Wouch Maloney & Company, which is located outside Philadelphia. They have a client who owns a business park, and the client uses drones to monitor the roofs of the buildings, the gutters, and the condition of the heating and air conditioning units. They no longer need to employ a cherry picker and an individual to go up and inspect the roofs annually. Can your business or your clients use drones to increase efficiency?
• I saved the most revolutionary technology for last. If you are not familiar with blockchain, here’s a two-minute video that provides an overview of the technology behind blockchain and its potential value. If you’re wondering what this will do to audits, Accounting Today provides some insight and notes that by 2019 capital markets will be spending $400 billion on blockchain technology. It is also worth watching WithumSmith+Brown's Amanda Wilkie's explanation of how it will affect the work of CPAs in a video with the Journal of Accountancy. Bitcoin is one of the more popular uses of this technology, and the SEC and the Pennsylvania Department of Banking & Securities are looking into the need to classify bitcoin and other virtual currencies as securities. Wilkie also further discusses the relationship between blockchain and bitcoin in another video for the Journal of Accountancy. So whether you are an auditor or a personal financial planner providing investment advice, this technology should be on your radar.

I hope I’ve convinced you that bots, drones, cybersecurity and blockchain are more than buzz words; they are the roadmap to future prosperity. At the PICPA we are identifying topics and experts that will help members incorporate current and future technologies into their growth strategies as the economy evolves around the Internet of Things. Watch for future announcements on these resources. In the meantime, you may want to read KPMG’s white paper, “Disrupt and Grow,” to get started down this exciting road to success.