Editor’s Note: This is the fifth article in a six-part series.
In the rapidly evolving landscape of accounting, CPA firms are being compelled to reassess their traditional business models. A powerful exercise for partners contemplating a transformation begins with a blank sheet of paper. Imagine starting a new firm from scratch: what would its mission and values be? Who would the ideal clients be, and what services would you offer to ensure their success? This thought experiment encourages a comprehensive evaluation of client relationships, workflows, and essential technologies.
Existing or New Technology?
Once firm leaders have delineated their priorities and established a transformation strategy, the next step involves selecting the right technology to implement their ideas effectively. Donny Shimamoto, a CPA and tech expert, emphasizes the need to transition focus from merely justifying technology solutions to articulating the business value that these investments will unlock. This mind shift is vital in ensuring that technology serves as an enabler of business growth rather than just a cost burden.
For instance, AI-powered financial statement analysis can be a game-changer, providing insights that pave the way for advisory services. There are also untapped potentials within data analytics for audit testing that can reveal high-risk areas that deserve attention. Furthermore, the automation of information gathering for quarterly tax estimates can simplify processes for accounting practitioners, as noted by Ashley C. Francis, another esteemed CPA, who leverages AI in her practice.
Francis also highlights the importance of creativity in technology usage. Her experience has shown that crafting specific prompts for generative AI can enhance clarity on objectives, helping her to refine her own inquiries effectively. This process doesn’t just yield better results but fosters a deeper understanding of one’s use cases and ideal outcomes.
Make Training a Priority
The path to transformation doesn’t need to be swift; it can take place gradually, tailored to the firm’s unique goals. Critical to this is ensuring that team members are adequately trained to utilize new technologies effectively. Shimamoto believes training is essential for successful adoption. He observes, however, that organizations often overlook thorough education, mistakenly assuming younger staff will seamlessly learn new tools. This can lead to inconsistencies in applications and tools being used in isolation.
Rather than cutting corners on training, firms should invest in education that enhances long-term effectiveness. This includes setting clear training goals, providing staff with dedicated time for exploration without the constraints of billable hours, and integrating educational achievements into performance evaluations. Group training also proves beneficial, particularly for communication-based technologies like generative AI, allowing teams to collaborate, solve problems, and learn from one another.
Nurture In-House Resources
Within any firm, there is a wealth of knowledge and experience that can be leveraged. Staff members are likely already using various technologies, often with a depth of understanding that can greatly enhance firm capabilities. Amanda Wilkie from Boomer Consulting advocates creating a group of tech-savvy employees to assess current tool use and effectiveness. Such collaboration can reveal practical insights and creative uses of technology.
For smaller firms, Francis suggests embracing custom chatbots for routine queries, which can save time and improve comfort in using AI technologies. By building internal resources, such as custom GPTs that assist with human resources inquiries or client-related questions, firms can streamline operations and empower staff to work more efficiently.
Don’t Let Efficiency Impede Innovation
While striving for efficiency, it’s crucial to remember that innovation often comes from a place of experimentation, which can feel chaotic and unpredictable. Shimamoto articulates the tension between operational efficiency—characterized by speed and order—and the creative messiness associated with innovation. For instance, a fully automated approach to tax preparation may save time but could compromise the vital client relationships that stem from personalized interactions.
Firms must balance technological efficiency with the human element of client engagement, which can also lead to innovative service offerings. Technology has the power to facilitate knowledge-sharing and operational improvements, but it’s not a substitute for the insights and creativity that human professionals bring to the table.
Redefine ROI
Wilkie urges firms to rethink how they assess technology investments. Often, the return on investment isn’t immediately visible. Instead, the real value might be in the newfound knowledge gained or enhanced understanding of existing capabilities. It’s essential to focus on aligning technology expenses with concrete initiatives that address real problems and provide competitive advantages, rather than purely emphasizing the need to avoid falling behind competitors.
Prioritize Change Management
The journey of transformation can tire even the most motivated team. With continuous improvement efforts and constant change, firms should be attuned to the human side of change management. Wilkie highlights the importance of communication, suggesting that localized leaders should convey changes to their teams rather than relying on higher management or IT departments. People tend to trust those they work closely with to relay pertinent information about how changes will directly affect their roles.
Managers should be well-informed and ready to address team concerns, establishing a rapport of trust that will ease anxieties associated with transitions. It’s vital to clearly articulate the benefits of new tools, answering the two pivotal questions: “Why do I need to change?” and “Why will this be better?” This proactive communication can foster a supportive atmosphere during transformational endeavors.
Human-Centric Solutions
Supporting people throughout the training process yields numerous benefits. As reported in the AICPA Private Companies Practice Section survey, addressing technology-related concerns, along with staff recruitment and retention, topped the list of challenges for many firms. Leveraging technology to alleviate repetitive tasks can lead to reduced stress and provide opportunities for employees to engage in more fulfilling work. This focus not only enhances job satisfaction but also contributes to talent retention and recruitment efforts.
Ultimately, it’s about making technology work for people within the firm so that they can deliver exceptional service to clients outside the firm. A human-centric approach to technological adoption will pave the way for a more innovative and engaged workplace.
Throughout recent years, CPA firms have navigated a myriad of changes and challenges compounded by events such as the COVID-19 pandemic. As client and staff expectations shift alongside technological advancements, it’s imperative for these firms to continually adapt and evolve in order to thrive.
The “Building a Better Firm” series stems from the Transforming Your Business Model initiative launched by the AICPA, aiming to equip firms with practical insights to confront the challenges and harness the opportunities presented by these transformative times.
Learning Resources
Join CPA.com in Washington, D.C., and online from Dec. 7—10 to explore emerging technologies, gain actionable strategies, and connect with peers shaping the future of accounting. Up to 16 CPE credits available.
Conference
Focused on firm practice management and technology, this conference marks the 10th anniversary at the ARIA in Las Vegas, set to take place from June 8—11.
Membership
The Private Companies Practice Section (PCPS) provides customized practice management resources for CPA firms of all sizes.
Credential
Certified Information Technology Professional
Representing the intersection of technology and financial reporting, the CITP credential can be earned through various pathways.
For inquiries or to make a purchase, please visit aicpa-cima.com/cpe-learning or call 888-777-7077.
Member Resources
Articles
JofA Artificial Intelligence (AI) Coverage
“How Accountants Can Balance Technology and Critical Thinking,” JofA, April 1, 2025
Podcast Episode
“Transforming: Tales of Business Evolution,” AICPA and CIMA PCPS, Jan. 17, 2024
Websites
PCPS Technology Resources Page
2024 PCPS CPA Firm Top Issues Survey Results and Analysis
About the Author
Anita Dennis is a freelance writer based in New Jersey. To comment on this article or suggest an idea for another article, contact Jeff Drew at Jeff.Drew@aicpa-cima.com.