How Technology Will Change The Cpa Job
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Charles Duell, the director of the U.S Patent Office at the beginning of the 20th century prophesied, “Every thing that can be invented has been invented.” Looking back, one may remark about the ignorance of this statement, and laugh in the irony of how much has actually changed. However, while the laughter is going on a question in raised; “is it possible that today’s businesses are believing what Duells said, вЂ?that there is nothing more to come?вЂ™Ð²Ð‚Ñœ Today, companies have access to some of the most groundbreaking technology, but are they taking advantage of it? One field that has changed dramatically over the past few years is the accounting department, specifically the profession of a Certified Public Accountant (CPA). Are CPA’s staying on top of the latest technology that can contribute to their job? For a better understanding of how technology directly affects the CPA profession one should look at the changes that have occurred over the past few decades, what a current office should be using, along with checking out the technological advances and how they will affect the CPA’s career in the next ten to twenty years.
Not only are the accountants’ world changing, but the courses that an individual must study on the road to becoming a CPA, are also rapidly changing. The objective is to better prepare the new graduate with a better understanding and firm grounding in the technology, which will soon confront them. Courses used to focus strictly on the use of paper and pencil in the solving of problems. The book was the single focus by the professors, and the book “contained everything that an aspiring student could hope to know.” But universities and individual professors are beginning to realize that once released in to the accounting profession, a graduate, not only has to understand the technology, but master it as well. This is why some professors have begun to use computer applications to accompany them in the mentoring of these young minds. In the early 1980’s very few accounting classes were encouraged to have group projects or even make presentations, but just as technology is evolving and adapting, so is the accounting classroom. Accounting courses are encouraged to implement some of the same standards and situations that are present in the CPA’s work life, into the curriculum, in attempts to make the accounting profession an even more competitive market. While the main objective used be a passing of the uniform CPA examination, now the objective is to have a “ready-to-go” accountant.
A CPA, CMA, Partner for UHY LLP, Steve McCarty, believes in staying up to date with the advances his company, as well as the world, is making involving the technology that will be changing his profession. He is aware of constant changes and enjoys being on the cutting edge. When asked how technology has impacted his career, an enthused McCarty responded, “HUGE! When I started 15 years ago, I did not have a computer. We typed financials and prepared tax returns by hand. Technology has allowed for us to grow more efficiently, faster, and remain cutting edge. Technology has also created opportunities for our profession. Now we are hired to test client IT Systems and do walk through to help facilitate or audits” But while his response was extremely pro technology, other CPA’s seem to be in the dark on how technology is actually going to influence their career. Carol Bowles, a CPA in Murfreesboro, Tennessee; is less familiar with the technology that is presented. When asked about changes in technology she mainly remarked on the changes in the CPA Examination, and less on the affects it will have on her career. Her only contribution was that it is her belief that PDA’s, or Personal Digital Appliances will be owned by nearly everyone. That “PCs (Personal Computer) will be a thing of the past. I believe they will become as common as the cell phone is to us today. They will be used in business offices, homes, and classrooms for teaching and learning.” So is Bowles correct? Will PCs become a thing of the past? While many people say “yes” and even encourage accounts to ditch their computers for a PC, the individuals who would be most affected by this say “no way.” While the access to files would be wonderful, the idea of the small screen is less inviting. This is why Stanley Zarowin, author of “Facing the future-accounting firms and the future of computers” doesn’t suggest a PDA but rather states, “Yes, desktop computers are losing their power and price advantages over portables. So as a desktop wears out, consider a laptop as a replacement.”
While technology is affecting some accountants in major ways, others will not be directly affected by it. Lisa Armstrong, an accountant in the public school system states that she has seen no changes in technology sense she began 20 years ago, except for the addition of a computer, and does not anticipate any changes in the next 20 years. A CPA working for Mark VII commented on the changes that her company is beginning to make in the accounting portion of the company. Mark VII, a carwash company, was recently bought out by a German organization and now has two major head quarters; one in Colorado and the other in Germany. Now, all of her files on via Internet and her every entry can be watched by Denver, which in turn is being watched by Germany. Nevertheless the most in depth response came from McCarty. When asked about the technology advances his company was making and where they were going to place him, he knew exactly what has been occurring around him.“Technology has made my profession easier, more competitive, more costly to stay current and I must focus on value added to clients.” He goes on to explain that technology has, and will continue to allow for more robust research, and keeping them more completive on conformity related items such as tax returns