Technology is bringing rapid changes to the field of accounting. Many time-consuming and often tedious accounting tasks, such as three-way-matching and data entry, are becoming the work of intelligent technology rather than human accountants. Automation helps to cut costs and improve efficiency, so whether accountants like it or not, this is the future of the industry.
However, even advanced technology like artificial intelligence (AI) and robotic process automation (RPA) has limits. Accountants and CPAs shouldn’t fear that technology will render them obsolete. AI, RPA, and other advanced technologies can serve as beneficially assistants to human accountants, but they can’t replace what humans can offer. This becomes even truer when the services accountants and CPAs provide are more personal.
As automation becomes the norm for many accounting tasks, the types of accounting work that people will look to human accountants for will shift as well. For these reasons, accounting firms would be wise to switch to a family office model sooner than later.
Why Switching to the Family Office Model Makes Sense
A family office is a private firm that manages the wealth of individuals and families. While in the past, the family office model was a resource for primarily high-net-worth individuals, more and more people of varying wealth are turning to family offices to manage their personal finances. The services offered by family offices include investment management, budgeting, insurance, tax services, financial education, retirement planning, wealth transfer, and charitable donations.
These types of services cannot be automated, as they require a complex and creative interpretation of data that even advanced technology simply cannot provide. Successful financial planning, reporting, and execution require uniquely human skills.
Accountants and CPAs with a family office offer services far beyond keeping taxes and accounting in order. Operating a family office makes their services much more intangible and in turn, much more valuable. For example, individuals and families rely on them for things like anticipating potential shifts in policy or the market that they can proactively address before they happen.
The bottom line is switching to a family practice will help to prevent accountants and CPAs from getting replaced by automation. Individuals rely on family offices for financial expertise, which often requires a kind of creative problem-solving only humans can provide. Accountants and CPAs who offer services that cannot be automated won’t have to worry about getting replaced.
Utilizing Advancing Technology
Human accountants are the link between the high-quality data intelligent technology can provide and the clients. That being said, accountants can use advancing technology as a form of supportin many ways.
First of all, intelligent technologies offer a chance for accountants to free up their time from tedious, repetitive tasks so they can focus on creative strategies, analysis, and insight to help their clients.
For example, cloud computing provides accountants instant access to data and high-level computing capabilities. The data is constantly updated, meaning only the freshest information is used for analysis. Fully automated accounting tasks include audits, banking, payroll, and tax prep, ensuring accountants can use their time for strategic and analytical tasks instead. Blockchain technology offers a more efficient accounting ledger that is always up-to-date and verifiable.
As these technologies take over the tedious accounting tasks, this will afford accountants time to dedicate to developing additional skills with which to serve their clients. Accountants with family offices will have the capacity to provide a wide range of services without relying on additional help. The accountants and CPAs themselves will expand beyond being financial experts. They will also be able to use their financial expertise to provide unbeatable consulting and strategic services at large.
Finally, intelligent technology offers data that is free of human error. Even minor errors in data can wreak havoc on effective financial planning. Human accountants and CPAs can then embark on complicated strategies with confidence, knowing that their analyses derive from accurate data.
Final Thoughts
Accountants and CPAs would be wise to take the impact of advancing technology into consideration when thinking about the future of their profession. Adopting a family office model is a way to ensure the services you offer can never be automated. What’s more, bringing in intelligent technology as a form of assistance can free up time to focus on tasks that include creative and insightful analysis, things that technology simply cannot do.
Jess Lakritz 