Over the years, a number of science fiction films, television shows and novels have depicted a future where portions of our lives are replaced with robots and artificial intelligence. Everything from the factories to the storefronts is populated not by humans, but by cold, calculated examples of the finest that “modern technology” has to offer. According to one recent report from Forrester, however, this may not be too far from the truth: It is predicted that robots and AI will replace up to 7% of all jobs in the U.S. by as soon as 2025.
Though we probably don’t have to worry too much about a robot uprising (yet), to say that technology is already impacting nearly all areas of our lives is something of an understatement. In the accounting industry, where I’ve worked for more than 20 years, we’re already experiencing incredible leaps in tech; bots and cloud accounting solutions make it easier than ever for small business owners to manage their accounting and bookkeeping tasks with the efficiency that only their larger counterparts formerly enjoyed. With these changes, there is a shift in the role accountants play in working with their business clients. This shift will accelerate as more businesses jump to the cloud. Many accountants are riding this wave and will thrive, but many others may suffer the same fate as the dinosaurs. The Technology Learning Curve This is predicated on the idea that entrepreneurs know how to use these new gadgets and tools in the first place. Anyone can blindly enter numbers into a software program; understanding what they mean is the key. Not everyone can be like one of the eccentric tech wizards from the HBO comedy “Silicon Valley.” Just because you know what the cloud is, does not mean you know how to leverage it to your full advantage. At the end of the day, what the cloud accounting revolution really enables isn’t a future where accountants are out of a job, but a very real and valuable opportunity for accountants to help their business clients in ways that were not available even five years ago. Read Article: http://www.forbes.com/sites/forbesfinancecouncil/2016/10/11/will-artificial-intelligence-and-cloud-accounting-replace-the-accountants-of-tomorrow/#2c74ebb7216f Shortly after we had started our consulting firm, Whitestone Partners, we began an engagement with a home healthcare business. As we do in almost all of our engagements, we asked to see the company's financials.
In response, the owner reached behind her and grabbed a three-ring binder, from which she extracted three pages, neatly stapled in the top left corner. Immediately, we could see that she had never even looked at those financials, because the paper by the staple contained no crease -- which would have been the case had anyone looked at the second page. That was unfortunate, because when people start businesses, they don’t always think about the ancillary tasks that keep those businesses going. For instance, few like to think about accounting. However, if you're going to stay in business any length of time, you'll need to perform some accounting functions. Related: How to Hire an Accountant In our experience, accounting functions in businesses that start as a one- or two-person operation and grow to midsize tend to progress through several steps. Obviously, you don’t need a chief financial officer (CFO) on day one. But you will eventually need people to help you transition. We’ve outlined the three progressive steps below explaining how to know when it's time to do that. Part-time or external-service finance professionalWhen a business starts out, it usually can’t support a full-time finance person. Nevertheless, you need to keep accurate accounting records from day one. If you lack the skills, it is often best to utilize a part-time professional and/or an service. You’ll need to accomplish three distinct tasks: Setting up and overseeing your accounting system. Many new businesses use QuickBooks, but other accounting packages are available. You’ll need to get your company set up by establishing a chart of accounts and determining the format for financial reports. En route, you will run into issues you hadn’t thought about when the books were initially established. You’ll want to periodically review the setup to make needed adjustments. Bookkeeping. This is the day-to-day entry of transactions into your accounting system and preparation of checks and invoices. More modest skills than those of whoever set up your accounting system will work, here. You may even take this on yourself, or employ a part-time person or an external service. One tip is to avoid using cash and instead make sure you run all transactions through the checking account or a company credit card. This will give you a record of every transaction. Another tip is to make sure that you review any money that leaves the company (e.g., via checks, credit card charges, payroll, etc.). Read Entire Article: https://www.entrepreneur.com/article/282896 An article addressing the lack of accounting majors who take the CPA exam after graduation.10/6/2016
There are more accounting majors than ever, but the number of graduates taking the CPA exam has remained flat. As a result, firms are struggling to fill open positions with entry-level accounting professionals. The lack of novice candidates has the potential to cause a shortage of public accountants, prompting executives to explore new ways to replenish the pipeline of future CPAs. Here are three ways to encourage young accounting professionals to take the CPA exam.
1. Explain the Perks Becoming a certified public accountant has several intangible perks. If you want to encourage accounting majors or recent graduates to consider public accounting, explain these perks in detail. One of the main perks is industry recognition of the CPA credential. Passing the test opens up new opportunities for accounting professionals and makes it easy to switch careers later in life. CPAs also enjoy enhanced job security. Although there are no guarantees when it comes to finding and keeping a job, there are more opportunities available to certified public accountants. Flexibility is another valuable perk afforded to CPAs. After gaining experience in the field, it's possible for CPAs to leave their firms and secure jobs with nonprofits and government organizations. Even the Federal Bureau of Investigation hires accounting professionals with the CPA credential. Additionally, CPAs have many professional-development opportunities available to them, making public accounting a rewarding career. 2. Discuss Earnings Potential Certified public accountants make $1 million more than non-CPAs in their careers, says Bryan Kesler, a contributor to AccountingWEB. However, recent grads bogged down with student loan payments and soaring housing expenses may be too concerned about their current earnings to think about the long-term effects of passing the CPA exam. Use real-life examples to demonstrate the financial benefits of becoming a CPA. For example, you may want to show that you used your CPA credential to land a position paying $20,000 per year more than you made at your first accounting job. 3. Suggest Life Adjustments New accounting professionals may be reluctant to spend time studying for the CPA exam when they could be spending time with their families. If you encounter this objection, explain how studying for the exam now can lead to better work-life balance later. Suggest temporary life adjustments, such as dropping an extracurricular activity or spending less time on hobbies, to show that it is possible to study for the exam even if you have a full-time job and a family. Without qualified people to fill the CPA pipeline, accounting firms are likely to have problems filling open positions and handling heavy workloads. Encourage young accounting professionals to take the CPA exam by discussing salary in detail, explaining all of the perks available to public accountants, and offering tips for balancing work and family commitments with the need to study for the test. Read Article: https://www.beyond.com/articles/3-strategies-to-fix-the-dwindling-cpa-pipeline-18383-article.html "As more people of all ages rely on mobile apps and devices to manage their daily tasks, online portals are becoming an effective method of sharing and exchanging files and information. They support two-way communications in a simple, secure format between a firm and its clients.
Within the accounting industry, clients have come to expect on-demand access to their financial documents, and an online portal environments, ensure these needs are met in a simple and secure format. The benefits of portal environments also extend to the business – they incorporate software solutions that simplify workflows, foster a flexible work environment, and cut down wait times making customer service and support efficient and effective while firms gain productivity. By eliminating these distractions, CPAs can focus their time and efforts on helping clients plan and reach their financial goals – exactly what customers expect when someone else is handling their money. So how will CPAs and their clients benefit from moving to a portal environment?" Read Entire Article: www.cpapracticeadvisor.com/news/12264606/how-accounting-firms-benefit-from-moving-to-client-portals Facebook:
https://www.facebook.com/stephen.scarfo.7 Twitter: https://twitter.com/Stephenscarfo1 LinkedIn: https://www.linkedin.com/in/stephen-scarfo-91b24a123 Wordpress: https://scarfoandcompany.wordpress.com/ Tumblr: http://scarfo-and-company.tumblr.com/ Weebly: http://scarfoandcompany.weebly.com/ Webpage: http://www.scarfoandco-cpas.com/index.html Excel is an F&A staple. A long-standing and essential accounting tool, it’s inspired some serious loyalty amongst finance professionals. And it can be practical in many situations.
Excel is great for downloading data to develop financial simulations or models that analyze data in new ways. It’s also a handy solution for operations that don’t need to exist in a centralized F&A system; sometimes it’s simpler and faster to create and manipulate one-off, supporting documents in Excel. Make no mistake – Excel is a great tool. But here’s the catch: It’s not the greatest tool for every situation. Read Entire Article: https://clarity.sutherlandglobal.com/blog/accounting-minu |
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September 2017
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