Why Accounting Companies Must Include Technology into Their Strategy

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Why Accounting Companies Must Include Technology into Their Strategy

Sarah Dawson, CFO Tech Outlook | Thursday, February 04, 2021

The tax and accounting companies must apply technologies that will help them to reduce cybersecurity risks. 

FREMONT, CA : Working remotely during the COVID-19 pandemic generated cybersecurity risks and other technology challenges for several tax and accounting companies. For the stay-at-home orders, many CPA companies and small businesses were not ready. Their protection was weak, and the instruments for collaboration and workflow were not adequate, so it was disastrous for them.

Several sources estimated that as cybercriminals exploited vulnerabilities created by the pandemic, ransomware attacks increased by anything from 30 percent to more than 700 percent. Ransomware attacks on both small businesses and CPA corporations have risen dramatically, with security standards so much lower when people try to work from home.

However, for now, many CPA businesses' workloads and profits have improved markedly this year as they supported their business customers manage the federal Paycheck Security Program (PPP) and resolve the pandemic's financial challenges and opportunities.

Assessing the firm's tech strategy

There are some factors for tax & accounting firms evaluating their technology strategy in this volatile time.

 

Continue investing in technology to remain competitive

In this timeframe, businesses will not spend what they can because they are terrified and conserving cash. On the other hand, CPA companies will be there for a while, so if companies have a long-term strategy, there is no excellent opportunity to update technology during the downturn in 2021.

In the long run, businesses that can sustain the course and implement their technology plan would benefit. Suppose accounting firms are coming off a hefty profit this year. In that case, they must not distribute it all because customer fee income is likely to decline next year, and businesses need to introduce many technology programs. Furthermore, the critical accounting tools, like practice management, tax, document management, workflow, and portals, to be implemented over the next five years.

Focus on priorities that reflect client needs, improve efficiency, and boost partners

Many organizations are not sufficiently thoughtful about their strategic and tactical objectives to match their plans and approaches with their technology. In addition, businesses should implement technologies that support consumers most, help their team members be efficient, and provide partners with optimum bottom-line value. The companies will choose better technologies if they make choices with the key points on.

From a technology viewpoint, as for success, look at what makes the most of the time to see how they can solve it. They could migrate to Microsoft 365 from the legacy Office Suite. To accommodate new applications that enhance productivity and customer service, they should start structuring the portals.

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