In its recently published Insights white paper, the PICPA interviewed five technology and accounting experts about why technology is not leveraged more as a growth driver of efficiency, quality, risk management, and client retention. More importantly, the new research addresses key technological challenges and offers advice on how to overcome these challenges.
By Kelly J. Waffle
PICPA Insights produces research, analysis, and resources on noteworthy issues impacting the accounting profession, such as CPA talent retention, addressing the CPA pipeline shortages, the state of Pennsylvania accounting firms, and ESG standards and reporting. Our most recent white paper, 2024 CPA Firm Tech Report, gathered the perspectives and recommendations around technology utilization and prioritization from five technology and accounting experts:
The need for this study and its recommendations are clear: only 9% of accountants feel they fully leverage their technology investments. Why? Our experts have come to a consensus that there is a set of challenges that keeps CPA firms from getting the most out of their technology. Here are just a few.
Firms Are Not Sure Where to Begin or What Comes Next – These firms do not have the internal resources to administer technology selection or implementation, nor do they have the expertise to evaluate and manage outside vendors. To help these firms, this white paper includes a CPA Firm Digital Maturity Model that allows firms to evaluate their level of tech sophistication, including factors such as infrastructure, skill sets, processes, and organizational culture. This basic understanding helps set the foundation for future tech stack work.
To begin the process of overcoming this challenge, our experts have provided a framework for developing a comprehensive strategic plan, which includes the following:
Resistance to Technology Adoption – Technology investments are expensive, but not investing in technology can be even more expensive. But nothing is as costly as investing in technology that never gets used.
Many firms that encountered this setback initially faced the challenge of resistance to adoption among staff. Our experts emphasize that understanding entrenched norms is key to a successful tech adoption. To alleviate resistance, the white paper offers a number of proven techniques based on experience collaborating with clients or from within their own organizations. These recommendations focus on the innovative use of communications, training, and agile methodologies.
Managing Tech Responsibilities without Dedicated IT Staff – This is a big challenge faced by small and midsize CPA firms across the country. One of the recommendations our experts make to meet this challenge is to move to a cloud-based software-as-a-service (SaaS) tech infrastructure. This move can alleviate staffing constraints and offers many benefits over traditional software deployments, including the following:
Another approach may be to consider outsourcing tech tasks to third-party providers. Hiring a third party or dedicated team will help ensure the firm is not relying too heavily on a single individual for maintaining critical systems. The white paper also includes our experts’ perspectives on several considerations when working with vendors. These include:
By leveraging expert insights and addressing key challenges, CPA firms can enhance operational efficiency, stay competitive, and achieve long-term success.
To learn more details about our experts’ recommendations to overcome these challenges and more, be sure to read the full 2024 CPA Firm Tech Report. All PICPA members have access to the full Insights white paper. Nonmembers can review an abridged version, but if you are looking for guidance and answers on how to move forward with technology adoption at your firm, we encourage you to join the PICPA and gain access to the full white paper and other professional resources.
If you have any comments on the 2024 CPA Firm Tech Report or have thoughts on future accounting profession topics for Insights to investigate, please send them to insights@picpa.org.
Kelly J. Waffle is director, research and innovation, with CPA Crossings LLC and manager of the PICPA Insights research program.
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Statements of fact and opinion are the authors’ responsibility alone and do not imply an opinion on the part of PICPA officers or members. The information contained in herein does not constitute accounting, legal, or professional advice. For professional advice, please engage or consult a qualified professional.