For my entire 20-year career, the CPA profession has warned of the coming technological disruption. The need for digital transformation has been a topic at every conference I have attended and regularly finds its way to the cover of accounting publications. While we've come a long way from the paperless initiatives of the early 2000s, many of the core systems supporting firms today look very similar to what they did when I entered the workforce.
While other industries rapidly adopt data-driven solutions like artificial intelligence, many CPA firms still rely on spreadsheets and processes that merely digitize the traditional paper-based approach. These legacy systems haven't prevented success and avoid the risks of retooling and reskilling employees, but staying in the past fails to capitalize on the incredible software available today.
That's not to say firms haven't tried or don't understand the opportunities available to them. The historical reality is that the current systems work, change is hard, and many of the traditional approaches to digital transformation require a complete system overhaul all at once. However, those realities have changed dramatically in the last couple of years with new tools that simplify adoption, allow for small iterative enhancements, and create real threats to leave you behind if you ignore them.
It starts with culture
The technology available to support digital work today is nothing short of breathtaking as many of the promises of cloud technology are being realized. We've experienced a true renaissance with tools that are inexpensive, easy to adopt, and sometimes make you feel like a wizard.
However, the tools aren't actual magic. We are still waiting for the technological discovery that overcomes poorly designed processes, and we continue to be grounded in the traditional rules and logic that require new skills and organizational alignment. Success requires changes to be embraced and celebrated across the firm, from support staff to partners in corner offices.
The shift in mindset is the most significant hill to climb, but it doesn't have to be painful or even hard. When you show people a better way to work and an opportunity to be more effective, it's easier to rally support. The conversation needs to be about more than higher margins and fear of being left behind — the real magic of a digitally driven professional services firm is that it empowers people to help clients and reduce stress.
Take inventory and find small opportunities
The initial challenge is recognizing the opportunity to expand technology use for everyday tasks and understanding where to begin. Numerous small, seemingly insignificant gains can collectively lead to a substantial shift in how we serve clients, enabling easier monitoring, asynchronous work and more accurate deliverables, among many other benefits.
These sorts of iterative and continuous changes can be hard, but being intentional about the systems you adopt and the types of experiments you conduct becomes your biggest asset.
Here are a few vital steps to help you get started as you adopt new technology in your firm:
- Address fears and challenges: Examine why your firm hasn't embraced the innovations we've seen in the compliance space. Common barriers include fear of change, adoption costs and required knowledge, all of which can be overcome with the right approach and mindset.
- Start small: Begin by integrating the tools you're already using, so they communicate with each other, and you can ensure data security at every transfer point. As you gain confidence, identify your firm's biggest pain points and brainstorm the best ways to tackle them.
- Thoughtfully consider budget: While the cost of implementing new tools can be a deterrent, many modern solutions are more affordable than expected. With the tremendous software available and marketplaces offering consultants to help you get started, the barriers to entry are lower than ever.
Analyze the best tools for your compliance firm
Think holistically about your tech stack and how tools work together, from your email to the systems you use for research, documentation, and client collaboration. The number of tools available is vast, and while many do similar things, each typically has some nuance. It's essential to know what you need and thoroughly research to find the right fit.
The best part is that most of these tools offer free trials and live demos, so you can see the product and ask questions, learn more, and try them out before investing time and money. For those who don't feel comfortable implementing tools themselves, many great IT consultants can lead you through the selection process and potentially help you onboard and integrate new tools.
If you want to build the tools and knowledge internally and fully tailor your firm's digital programs from scratch, AI can help significantly as you learn to write and debug code. If you have zero coding experience, that is no longer an issue with low-code and no-code platforms that do the tough programming part for you, allowing you to personalize and design tools specifically for your firm's needs.
Implement technology smoothly
Adopting new tools and changing processes can be challenging, particularly for employees.
Here are some tips for smooth implementation:
- Introduce tools gradually: Avoid overwhelming your team with too many new tools at once. Be intentional and roll them out at a comfortable pace with clear instructions, expectations and documentation.
- Provide comprehensive training: Offer high-level group training followed by individual sessions with subject matter experts to address specific questions.
- Foster a supportive culture: Some team members may initially resist new tools, preferring traditional methods. Be patient because, over time, they will recognize the benefits and time savings, allowing them to focus on more interesting and valuable tasks.
- Document and iterate: Create clear documentation for new processes and be open to feedback and adjustments as your team adapts and finds new ways of working.
The journey to a truly digitally driven firm requires curiosity, patience and a willingness to embrace change. Be open to continuous learning opportunities, and as technology evolves, so should your firm. This transformation won't happen overnight. It's a gradual process that involves overcoming initial fears, making informed decisions, and fostering a strong culture that supports innovation.
By taking these steps, you'll position your firm for gains in efficiency and long-term success. Embrace the journey, trust the process, and watch as your firm becomes more dynamic, innovative, and client-focused. The future of compliance is digital, and the time to start is now.
