Top 4 Accounting Challenges That You Need To Overcome

What you do for your clients may be largely unchanged over the years, but how you do it, and the challenges you face have changed a great deal. Are you prepared to deal with the modern accounting industry’s major obstacles?

4 Accounting Challenges You Need To Overcome

Most of today’s accounting firms have embraced the changes that are occurring in this technology-driven business world. And yet, many are still undergoing dramatic changes that affect their business in various ways, and not dealing with them as effectively as they could be.

From cyber threats to rising costs, the financial industry is facing its share of tough problems. Savvy business owners overcome these challenges and move forward – with the help of their IT company in San Jose, of course. They can help you respond to changes and overcome challenges that occur in your industry.

Still, these issues can slow down the workflow and require too much attention. The struggle can be tiresome and never-ending…

Will Your IT Company In San Jose Address These Obstacles?

1. Technology’s Role In The Accounting Industry

If you want to keep your current clients (as well as, ideally, add a few more), then you need to stay ahead of your competition. That means adding more and more services. The easiest way to do so is with technology. Your IT company in San Jose should support your consideration of new technologies and how they may apply to your work.

2. Keeping Up With Industry Change

As technology occupies a more and more significant role in the accounting industry, accountants themselves will have to adapt. You will need to understand what tasks of yours will be better handled by automated technology and self-service options for clients.

But that doesn’t mean you’ll be out of a job – you’ll also take on new responsibilities. Samantha Stansfield, director of professional development at stated: “With automation minimizing many entry roles, the profession needs to identify how young professionals gain experience and knowledge, so they can become valuable advisors.”

3. Cybersecurity Management

Both in the private and professional fields, cybersecurity is more important than ever – that’s why cybersecurity spending is expected to exceed $124 billion next year. Have you prepared your firm for cybercrime in 2020?

You’ll need to implement a range of cybersecurity solutions if you haven’t already:

  • Email filtering
  • Two-factor authentication
  • Automated password and user ID policy enforcement
  • Comprehensive access and password management
  • Whitelist or blacklist external traffic
  • Patch/update all IT and security systems
  • Manage access and permission levels for all employees.
  • Review existing technical controls and take action to plug any gaps.

4. Updates To The Tax Code

The degree to which tax code continues to change makes it so difficult for accountants to keep up – but you still have to. In order to serve clients, you need to be able to advise on their taxes, no matter how they change.

As noted by senior tax trainer Robyn Jacobson, “Most of the tax policy I’m seeing at the moment is in response to groups of taxpayers who are not complying,”.

“Sometimes there are only small groups of people in certain industries who are not complying, but the government will turn its attention to that entire industry. It’s like the old expression, ‘using a sledgehammer to crack open a walnut’.”

Furthermore, the Tax Cuts and Jobs Act has had an impact on absolutely everything financial firms deal with, from entertainment expenses to depreciation. The 186-page document is confusing, to say the least – but with the right software, you can automatically call up any new rate as needed.

Need Some Expert Advice?

If you’re unsure of how to navigate how new technology is changing the accounting industry, you should know that you don’t have to do it alone. Veltec Networks can help – join us for our upcoming webinar on cybersecurity in the accounting sector:

New IRS Requirements for Data Protection for Accountants and CPAs Webinar: February 20, 2020

In this webinar, we’ll explore the “Taxes-Security-Together” checklist, a resource developed by the IRS to help firms like yours develop an effective cybersecurity posture. We’ll show you why this is important, how to go about implementing it, and will answer any other questions you may have.

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