The Internet of Things is changing the ways CPA Firms can help your company.
The Internet of things has changed the ways CPA’s conduct audits. Cloud based transactions change the sources of data flowing from vendors and to clients.
CPAs must monitor transactions and insure that proper controls are in place. Internal control design is changing. Client information is going directly into accounting systems from the web Instead of first going to a bookkeeper to enter. CPAs will frequently automatically receive data from the client’s digital system before any internal person has looked at it carefully. Because transactions are being entered in close to real-time, often without a person as a barrier between the imports and the data, there is a greater need for continuous auditing.
The advantage of real-time systems like this is that CPAs and owners are made aware of issues faster. This means they can react to issues in time to influence the outcome. If a program sends an automated warning message in real time owners and CPAs can respond quickly.
Accountants now need to become more tech-savvy. The Internet of things has brought accounting and IT together with a lot of overlap. IT professionals and accounting professionals have to work closely with each other to get company objectives done.
CPAs will be advise their clients on how to redesign their systems to accommodate the internet focusing on database design and critical data analysis.
CPAs have always been experts on internal control, now CPA will be expected to provide consulting and opinion on internet data security as well. Soon CPAs may be asked to give their professional opinions on the internet and IT systems that supply the data as well as the data itself.
It’s not too late for your company to catch up. The internet of things has yet to reach critical mass. It systems are being redesigned to be internet enabled and internet secure.
There’s still time to get ready. The cloud has not been fully adopted yet. In the mean time owners can rely on CPA’s skill in business analytics to use Big Data, the Cloud, and the Internet safely and in the most profitable way for the company possible.
In summary, today’s CPAs are increasing becoming technology consultants as well or have technology consultants on staff or can recommend an IT professional they trust.
To schedule an appointment to implement this strategy and others within the context of your unique tax situation, Contact Brown CPA Group, Ltd., at (847) 509-4100.
About the author: Ken Smith is an Enrolled Agent and Senior Staff Accountant with Brown CPA Group, Ltd. We know that success means different things to different people. While a business owner strives to maximize profits, increase efficiency and plan for succession; an individual client is more concerned with tax planning, wealth management, retirement and estate planning. At Brown CPA, we work with you on the total picture. Together, we succeed.
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