The Accounting Industry’s Next Revolution
Every industry undergoes its own transformational phases. With the passage of time, new technologies and procedures are produced. The evolution of all sectors is influenced by both internal and external causes. The accounting profession is no exception.
Changing of the times
Few accountants used software to complete tax returns for clients just a few years ago. Some even took satisfaction in the fact that they were knowledgeable enough to prepare tax returns without software. In a few short years, virtually every accountant in the United States will utilize tax preparation software to file tax returns.
Now, the question is not whether an accountant uses software to create tax returns, but rather the program he or she employs. Significant changes have occurred in the accounting industry. Accountants who are observant may recognize the rapid pace of change in their industry.
From denial to acceptance
In contrast to just a few years ago, it seems nearly inconceivable that any accounting firm could function and prosper without computers and accounting software. There is probably not a single accounting firm in the United States that runs without computers and tax and accounting software.
In the past, a huge proportion of accountants did not believe that computers or software could join their industry. They believed that nothing could replace their tax return preparation skills. They believed that their capacity to balance a trial balance and generate financial statements was irreplaceable.
Their denial has rapidly transformed into universal acceptance.
The paperless accounting practice
Accountants are currently experiencing a new stage of denial. This time, they dispute that it is ever conceivable for an accounting firm to function without paper documentation. They dispute that accountants will ever be able to function without paperwork, period.
There has been much discussion about paperless offices for years. Numerous articles have described how paperless company processes will transform the world.
However, the projections have not materialized as quickly as anticipated. The subject lost its appeal over time. Therefore, accountants’ denial that a paperless office could ever exist for them is justified.
The reality is that the paperless office is rapidly approaching. The technology necessary to transition commercial operations to paperless operations has become astonishingly affordable.
Small CPA firms can now go paperless with as low as a $2,000 expenditure on their own. Unfortunately, accountants are oblivious to this tendency despite the fact that the times have changed drastically in this field.
For accountants, it’s time to get up to speed.
The technology is accessible, inexpensive, and speedy. Yet there are tens of thousands of accountants in the country who are unaware of this industry-wide shift. In a few short years, it will be inconceivable that an accounting firm runs with paper, just as it is already inconceivable that an accounting office could exist without computers and software.
This move is of a sort that could be catastrophic for many accounting firms. When accounting and tax software were available, it was not difficult to adapt to the new system.
You may easily implement a new method of operation. You would acquire the program, have training, and then begin utilizing it going forward.
A cultural change is needed.
To go paperless, however, requires a significant cultural shift. It has a significant impact on the way offices operate. It necessitates a significant adjustment in work flow processes. Additionally, the conversion process demands careful preparation and execution.
Conversion is not difficult, but requires careful planning and consideration. Unbeknownst to many, a big change is building in the accounting sector, which might harm and kill many small accounting firms while making billions for others.
The paperless revolution might potentially bury a few accountants in their own paperwork.
Conclusion
What does the future hold for the accounting industry? The accounting software landscape is ever-changing, and it’s a good idea for us to consider how new technologies and trends will affect the work we do on a day-to-day basis.