The Next Revolution in the Accounting Industry
Pictur: Accounting Industry |
The Next Revolution in the Accounting Industry. Every industry goes through its natural phases of transformation. As time goes, new technology becomes available, and new processes are developed.
Internal and external factors contribute to the
transformation process of all industries. Accounting industry is not an
exception. The Next Revolution in the Accounting Industry
Only a few years ago very few accountants used software to
prepare tax returns for their clients. Some even considered it a pride that
they were smart enough to prepare tax returns without using software.
Within a few short years, almost every accountant in the
country uses some kind of tax preparation software to prepare tax returns. Now
it is not a question of whether an accountant uses software to prepare tax
returns, but of which software the accountant is using.
Times have changed significantly in the accounting industry.
Observant accountants may notice how fast things changed in their industry.
Unlike only a few years ago, it is almost unimaginable how
any accounting practice could function and survive without computers and
accounting software.
There is probably not a single accounting practice in the country that operates without computers and software for tax and accounting.
Only a few years ago, a large number of accountants did not
consider computers or software as something that would be able to enter their
industry. They thought nothing would replace their ability to prepare a tax
return.
They thought nothing could replace their ability to balance
a trial balance and prepare financial statements out of it. Their denial has
turned into widespread acceptance within a short time.
Accountants are now in a new phase of denial. This time they
deny that it is ever possible for an accounting practice to operate without
papers.The Next Revolution in the Accounting Industry
They deny that it is ever going to be possible for accountants to operate without papers, period. There has been a lot of talk about paperless offices coming for years.
Read more: Understanding Accounting Vocabulary
Numerous articles have described how the world will change with paperless business operations.
However, the predictions have not come true at the speed
people were expecting. The topic lost its attraction over time. Thus, the
denial of accountants that there could ever be a paperless office for them is
justified.
The fact is that the paperless office is sneaking up on us.
The technology that is required to convert business operations into paperless
operations has become remarkably affordable.
Small CPA practices can now go paperless with an investment
of as little as $2,000, on their own. Times have changed significantly in this
area but unfortunately, accountants are not noticing this trend.
The technology is available, affordable and quick. Yet there
are thousands of accountants in the country, who are not even aware of this
change coming in their industry. The Next Revolution in the Accounting Industry
Just like it is unimaginable that an accounting practice
could operate without computers and software today, within a few short years,
it will be unimaginable that an accounting practice operates WITH PAPER.
The nature of this change is such that it could be
devastating for many accounting practices. When accounting and tax software
came about the process of adopting the change was not that difficult. You could
go forward with a new way to operate very easily.
You would purchase the software, train yourself and start using it, going forward.
Going paperless, however, is a culture change of a great
magnitude. It brings about major changes in the way the offices work. It
requires a major change in work flow processes. The conversion process also
requires good planning and implementation.
Conversion is not difficult but it does require special
planning and attention. There is a significant revolution brewing in the
accounting industry, unnoticed by many, which could damage and kill many small
accounting practices, while make fortunes for others.
It is the paperless revolution that could bury a few accountants under their own papers. (*)