How Is Cloud Accounting Transforming CPA Firms?

cloud-accounting-transformation | Photo Courtesy of	 photosteve101 firms increasingly are adopting cloud accounting as CPAs discover how cloud and mobile technologies help them provide better customer service.

A survey highlighted in an article on the TechJournal website reports that such technologies are transforming the tax and accounting profession.

Large CPA firms are making the transition more quickly than smaller firms, but the trend is strong across the board, even though historically CPA firms are a bit antiquated in adopting new technology.

Now, with more young people working for these firms, it’s changing the way traditional CPA businesses operate. An employee who is 25 years old is going to have a totally different outlook than someone who is 45. Millennials expect to be able to access information from wherever on any device they choose.

That’s important because, as the survey reports, 81 percent of accounting professionals spend time working outside of the office. On average, professionals at mid-size firms spend 5.8 hours per week working remotely, while those at large firms work remotely 8.6 hours each week.

The cloud and mobile allow for a distributed workforce. There are many benefits to using a flexible workforce where employees are allowed to do some — or all — of their work from home.

Plus, the ability to enter information on a mobile device can make a huge difference in how these firms interact with client services, and it increases collaboration efforts when doing audits.

Big Data also will have a big impact on the accounting industry, according to the survey.

Finally, while two-thirds of CPAs surveyed say that leveraging technology like cloud accounting is vital to their success, 87 percent report they could do it more effectively. Fewer than 15 percent indicated that they’re “very confident” in their ability to manage emerging technologies.