Technology has gotten a lot more complicated over the last few years, but certain accounting leaders don't seem to have gotten the memo.
Many years ago, the technologically minded accountant was one who went to an office store and bought a program literally off the shelf. But as problems got more complex, so too did the programs used to solve them, to the point where most of the technology deployed today requires not just a clean install but ongoing support and maintenance. Some accounting leaders, however, severely underestimate the scope of this task, much to the detriment of their firms.
"You don't go out and buy a piece of tech and install it and it solves all your problems," said Wesley Hartman, director of technology at Kirsch Kohn & Bridge as well as the founder of automation solutions provider Automata. "Real implementation of new technology is, if anything, just as important as the due diligence of choosing the right technology."
Hartman said that, ultimately, people adopt technology to do more in less time. When people find a solution, they need to consider net time saved versus gross: While software might simplify one part of a process, if poorly implemented and maintained it will only serve to add more complexity as a whole that takes even more time to address than if they had never bought the solution at all.
"We need to implement technology that saves time as opposed to adding more complexity. Usually the implementation is where you actually do the time savings. … Implementing these technologies and giving it to staff members also really empowers the staff, which helps retention. They've got something they can call their own, which they implemented from the beginning," he said.
Peter Scavuzzo, chief information officer at Top 25 Firm Marcum and the CEO of Marcum Technology, attributed this to a mindset issue. There are accounting leaders, he said, who think they can just go to the store and buy artificial intelligence, machine learning or dashboards off the shelf as if it were a Quicken CD. These leaders get burned when they realize it's not just like flipping a switch.
"I think leadership has to tune into a different frequency than it has in the past, and needs a mindset that they have to be thinking differently about this technology and what it takes to unlock the value of its potential. It needs new IT professionals who think more along the lines of solving the complex problems these technologies can solve. I think the off-the-shelf mentality [doesn't work]. You can't just open up a box and install the software and have it work," he said.
Brian Tankersley, director of strategic relationships with K2 Enterprises, raised cloud technology as an example. He noted that just because something is in the cloud does not necessarily mean it is better, and even if it is the case, it does not necessarily mean it is better for the specific situation for which one is seeking out cloud connection. Unlocking the true value of cloud computing, according to Tankersley, requires the relatively low-tech task of thinking about a firm's workflow and how it would be affected by a move to the cloud.
"A lot of firms and people don't contemplate the workflow in the new application — they think they'll just keep their processes exactly the same, plug in this new app and suddenly everything is rainbows and unicorns. That's just not the case," he said. "You'll have to revise your process. I think generally we spend less time on process than we should … . A lot of firms don't do that because equity partners want to be able to call the shots. They should call the shots as a group, but if they try to do this individually they end up with a splintered set of things that's no good for anyone."
This, he said, is a consequence of people focusing more on the tool than the business problem the tool is meant to address. Technology will not solve a broken workflow or a disjointed management structure, and it is foolish to think it would. Tankersley said that, overall, people need to have a more realistic view of what these solutions can offer firms.
"I think we have to have realistic expectations of [this] technology. It will not read our minds, it will not cure cancer, it will not make us more attractive. It is a tool and we have to use it like a tool," he said.
This story is part of the second season of the Accounting Today series called "The Frontier," where we explore the cutting edge of accounting technology through conversations with thought leaders across the country, who will share with us their observations, hopes, concerns and even a few predictions here and there.
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