One tech ahead: digital trends for CPAs in the know
Among the top technologies cited in a recent survey, AI and cognitive computing came in at No. 1 (Getty Images/pixelfit)
The pandemic has highlighted the importance for organizations to be agile and have a digital-first mindset. In many cases, it has also put digital transformation plans into overdrive, while bringing rapid changes to the key technologies that affect the way CPAs do their work.
“COVID-19 has accelerated almost all of the major trends, especially in technology,” says Tom Hood, CPA (US), executive VP, business engagement and growth at the Association of International Certified Professional Accountants (AICPA) and a panelist at a session called “Technology trends in a new reality” at CPA Canada’s The ONE Conference + Expo in September.
Hood cites the work of futurist Dan Burrus, who estimates that e-commerce has accelerated by 10 years during the pandemic, while cloud computing has sped up by four years, remote working by 10, artificial intelligence (AI) and machine learning by six, data analytics by five, and AI and robotic process automation (RPA) by four.
“We’re in an age of accelerating acceleration,” says Hood, adding that this is being fuelled by exponential increases in processing power, bandwidth and digital storage capacity, coupled with lowering costs. “COVID-19 has sped up the adoption of many technologies and the convergence of technologies is increasing the speed and scope of these accelerating forces.”
POWERFUL TOOLS OF TRANSFORMATION
AICPA’s latest global survey of 1,000 CPAs, CGMAs and CFOs spelled out the technologies that rank top of mind. AI and cognitive computing come in at No. 1, followed by data analytics, advanced cloud, mobile apps for business processes, adaptive/predictive cybersecurity and RPA (robotic process automation)—a technology that Hood calls “very important for automating basic level accounting functions.”
Hood also expects to see blockchain and crypto-assets moving up the ranks. “They’ve been hyped for five years and at one point moved to No. 4. This year they are at No. 8. I would definitely put crypto-assets, defi [decentralized finance] and DAO [distributed autonomous organization] on the radar.”
Lars Goransson, managing director at IDC Canada and also a panelist at The ONE, sees similar trends on the horizon. “We’re talking migration to the cloud and an evolving reliance on AI and software, automation, RPA,” he says. “All of these things drive digital transformation.”
BIG DATA, BIG IMPACT
One of the most critical components of digital transformation—and one that stands to have a major impact on the way CPAs work—is data analytics (and advanced data analytics in particular).
“The world is ingesting more data than ever before,” says CPA Michael Wong, principal, research guidance and support, for CPA Canada. “You need the right tools to analyze that data. It’s no longer just running financial figures. It’s incorporating other internal and external datasets such as customer metrics or demographic data into models for better predictions. CPAs need to apply a similar rigour to these new data sources as we do with financial data and take a more active role in using them to support management decision making.”
Finance professionals should explore how alternative datasets could be incorporated into traditional financial analysis, Wong explains. “While analyzing high volumes of data may seem complex, AI can [analyze data] at speed and scale to help organizations make more informed decisions more quickly. However, you have to invest in strong data governance, employee upskilling and technology infrastructure.”
While organizations are already comfortable with cloud computing, Wong expects to see a stronger focus on advanced analytics techniques as we move forward. “There’s more emphasis on data analytics and AI in CPA Canada’s Competency Map 2.0 proposal, which reflects the changing landscape of the accounting profession. [The public draft of Competency Map 2.0 is currently available for review and comment, and all stakeholders are encouraged to provide their insights and perspectives.]
Wong adds that CPA Canada is also running a Techathon in September to allow CPAs to use cloud technology and data analytic techniques to help solve business challenges.
CPAs: THE MISSING LINK BETWEEN DATA AND TRUST
CPAs play a vital role in supporting digital transformation efforts, says Michel Girard, senior fellow, Centre for International Governance Innovation in Ottawa, and a panelist for a session on digital transformation at The ONE. (He is also a key contributor to CPA Canada's strategic initiative Foresight: Reimagining the profession.) “In my universe CPAs are the missing link between data and trust. We need CPAs around the table to contribute to the standards and tools needed to support digital transformation. If you can bridge that trust gap, AI implementation becomes easier, data sources are more fit for purpose and things fall into place.”
An organization can’t rely only on data scientists to tell them what to transform and how to transform it, adds Girard. “They also need people with competencies to solve operational problems and demonstrate the business case for a digital transformation strategy.”
CPAs are also needed to design proper data policies, says Girard. “Policies are essential to [producing] high-quality data that is fit for purpose and for enabling trusted access to meet privacy goals and contractual obligations as well as ethical and transparent analytics.”
FROM TACTICS TO STRATEGY
“From a financial point of view there will be different KPIs, more suppliers, more risks and more contracts,” says Goransson. “The CIO will need to move from a tactical to a strategic role. If you are going to be a partner, a CFO or director of finance, you have to actually understand the changes that are happening inside your industry.”
As companies return to growth, they must think beyond the new normal to the next normal, says Goransson. “If leadership doesn’t understand the future requirements, they’re in a challenging spot. The problem isn’t shortage of capital. It’s finding the right skills to integrate each of these technologies into business operations—and doing it quickly.”
STAYING ONE TECH AHEAD
CPA Canada has a wealth of resources to keep you up to date on tech trends and offers certificates in blockchain, robotic process automation and data management.
It is also developing an advanced certificate program in data management that will focus on practical applications for managing and analyzing data for high-impact results. The program is being designed in collaboration with exciting partners and is expected out late fall or early winter. Watch the CPA Canada website for details.
Also, be sure to attend The ONE Conference + Expo, which will feature several sessions on tech-related topics.
And for more on digital transformation from a human perspective, see the joint AICPA/KPMG publication on the topic.