Notes

Common challenges facing Accountants and CPAs

In the last decade, the accounting profession has witnessed some significant transformation. All thanks to the advancement in technology. But despite the changes, accountants and CPAs are still faced with some challenges.



The emerging technologies demand that accountants and CPAs expand their scope and do away with traditional methods. At the same time, they need to learn how to adjust to the continuous changes in tax laws.



The following are some of the common challenges facing professionals in the accounting profession.



1. Automation and AI



Automation and artificial intelligence are taking over more accounting tasks. Many firms are beginning to implement machine learning or AI in their operations. They use this technology to automate repetitive tasks, address labor shortages, and deliver more insight data.



But the problem here is that, as more tasks become automated, accountants need to acquire skills to utilize information and data generated from new technology. They need skills that will enable them to play a role in more of the business strategy.



2. Changes in Tax Laws



Applying changes in tax laws is one of the challenges for accountants and CPAs. The effects of the COVID-19 pandemic have made many countries change their tax laws. And companies need to implement the new provisions into their systems.



Accountants and CPAs would need to absorb the new policies into the Consolidated Appropriations Act. To do this, they need to understand the total tax liability, navigating shifting trade and tariff policies.



Accounting practice management software will enable accountants to create digitized, accurate, and easy-to-access records. It will make implementing changes in tax laws more manageable.







3. Cybersecurity



Cybersecurity is becoming a significant threat to the accounting profession. Sensitive accounting information such as bank account numbers, credit card details, pins, or passwords is a hot target for hackers.



As an accountant, it’s part of your responsibility to protect your data. You need to ensure it does not go beyond the walls of your company or get into the hands of an unauthorized person.



4. Keeping up with new technology and tools



Technology is rapidly eliminating traditional methods and rules-based accounting skills. And there’s an increase in the use of digital tools to automate and accelerate accounting operations .



Being an IT person is now a primary business requirement. Accountants and CPAs need to keep up with constantly evolving technology to remain competitive. They need to understand the emerging technologies to continue serving clients and impact the accounting profession.



You don’t need to hire a tech expert before you could manage invoices, generate reports, or implement tax reforms. As an accountant, these are tasks you should be able to perform with the right software.







Understanding the challenges facing accountants and CPAs will enable you to make adequate plans for the future. Implementing practice management software is one of the things you must do to eradicate some of these challenges. It will give you more control over your accounting operations.



Also, it will create better opportunities for you in the market and give you an edge over your competitors.








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