These days, it’s more important than ever for accounting firms to stay up to date on the latest technology. We’re in a culture of keep up or get left behind, and this has permeated all aspects of accounting.
In fact, many new accountants will find that exploring and investing in new tech for their companies ends up being a bigger portion of their job responsibilities than they anticipated. So what do you need to know to invest in the right technology for your firm?
Most accountants aren’t trained in how to invest in new technology or implement new systems. While there are best practices for these decisions, there isn’t a standardized way of disseminating this information across the profession. But that doesn’t mean that accountants are ill-suited to do it—it just means they’ll need to learn on the job.
Accountants should start by relying on their knowledge of macroeconomics. Heading into 2023 with a precarious economic forecast, it’s more important than ever to make sound decisions. So how do you begin to determine what to invest in and when?
Consider these four components when you’re thinking about investing in a new technology for your company:
Vision comes from understanding the challenges in your business and identifying solutions for those problems. Changemakers need to discover new ways to get increasingly efficient and accurate across the company, but particularly in accounting.
Return on Investment
When advocating for a new technology or service, the pitch needs to explain the return on investment. The ROI can be quantitative or qualitative, but it’s best if it is both.
It’s vital to have an appropriate, approved budget for your investments. Leaders also need to account for economic conditions when making changes to the budget.
You can’t implement every system, because your teams need time to learn and apply new tech. Make sure you allocate your team resources wisely and choose systems with care and intention. A great piece of technology implemented poorly can still waste time and money.
If you’ve weighed all of these components, it’s much easier to evaluate what’s a good investment and what isn’t. It’s always a balancing act of keeping up with the competition while finding the tools that will truly help your company flourish.
Listen to the entire podcast (E31: Perspectives on Accounting Tech & State of the Profession with Michael Kelly) here:
Gappify, founded in 2016, is a cloud-based provider of accrual automation solutions for mid-market and enterprise accounting teams. The company is headquartered in Oakland, California, with offices in New York City, and Manila, Philippines.
Its team consists of accountants and CPA’s from Big Four accounting firms and software innovators. Gappify is also supported by strategic advisors from some of the world’s most recognized technology companies and is affiliated with the top companies & accounting organizations.
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