By William J. Hayes, managing editor, Pennsylvania CPA Journal

Cybersecurity, blockchain, transformation of the finance function: these are changing the accounting industry, no matter the sector. Construction industry accounting is no exception. That’s why on Oct. 16 at the PICPA Construction Industry Conference, Charles Sgrillo of Kreischer Miller will discuss these emerging topics and more. We sat down with our presenter and got a sneak peek at what he will be talking about at the conference.

Charles Sgrillo, Manager, Technology Solutions Group Kreischer Miller

PICPA: What role do you think the emergence of blockchain might play in the future of construction industry accounting?

Sgrillo: Blockchain is a technology that will not only affect construction accounting, but the entire field of accounting. Blockchain allows for cryptographically verified transactions to be conducted in real time and with an audit trail. This technology can automate and streamline various business processes, allowing for more time to be spent analyzing data and making decisions.

Where do you think the construction industry is right now in terms of increased automation? What challenges have they experienced?

The construction industry, like most industries today, is adopting “smart” technology without a full understanding of the security risks. In the age of the Internet of Things, many companies have been tasked with introducing “smart” functionality to their product lines. However, in today’s threat landscape it would only take an adversary about 10 minutes to find and take control of an internet-accessible smart-truck that is not properly configured.

Are decision makers in the construction industry cognizant of the threat posed by faulty cybersecurity? What are they doing now, and what should they be doing better?

At the moment, most business owners are at a disadvantage with regard to making cybersecurity decisions. All technology decisions should be made using a holistic and systems-oriented mindset. This requires someone who has an in-depth understanding of the people, the process, and the technology involved. Many organizations do not have that skillset in-house. So, for business owners, it is about finding the right balance of internal and external support.

What role does the human element play in cybersecurity? Can any cybersecurity plan be enough if you don’t have full buy-in of the personnel involved?

With over 80 percent of cybersecurity incidents occurring due to human interaction, end users are a high target for cybercriminals. Therefore, the human element is the most important part of any cybersecurity plan. You need 100 percent buy-in from your employees or the plan will not work. Plus, you must have a top-down approach. You cannot enforce cybersecurity controls if business owners are not practicing what is required.

For more information on the rise of technology and how it is affecting the construction industry and CPAs, check out Sgrillo’s presentation at the Oct. 16 PICPA Construction Industry Conference.