IoT or the Internet of Things sounds a little like IT marketing hype, but appears to be the only way of getting a handle on where all the total interconnectivity tentacles are heading. So, what does the Internet of Things got to do with accounting? Everything. This is because from the moment one switches on a device each morning, one is a part of it already.
THE INTERNET OF THINGS IN THE ACCOUNTING ENVIRONMENT
The pace of change is remarkable, yet at its core, the Internet of Thigs is quite simple. It is the idea that all things and devices are connected. As an industry and profession, the Accounting environment and clients are still coming to terms on how to work with the myriad of SME-focused internet accounting packages and not it is not even just only about cloud anymore as the Internet of Things take over. These days, accountants and accounting firms are truly seeing their clients via data connectivity. There is an introduction of tie-in, free accounting services from local retail banks, low monthly fees from accounting platforms worldwide and development of cloud ecosystem providers for payroll, accounting, human resources, inventory and order management processes. Everything are packets of data that when pooled together would empower an accountant to determine a correct process, treatment, income stream or a piece of advice which matters most to the business clients.
For most small and medium enterprises with the cloud accounting advent, they could see a clear return on paying for advice that does not only mark compliance time but also helps in shaping the business for the future. With the influx accounting platforms that are cloud-based, whether they are used primarily for bookkeeping or for more strategic financial intents, now there is no reason why SMEs will not be operating with an appropriate proactive level, sophisticated advice, the same expense and tax-optimization intelligence that has been giving bigger firms an unfair advantage for a long time. The Internet of Things will not only drive profitable growth for clients but provide substantial value for an accountant’s practice as well. For providers in all professions and accountants, all this would mean looking for ways to be part of a new world that is service-driven. A world that’s connected and fueled by intelligent systems and empowering.
IMPLICATIONS OF IoT for CPA ORGANIZATIONS
The Internet of Things has implications for all CPA organizations, but the effects would be particularly apparent in auditing. Furthermore, it would also bring CPAs new opportunities for customer service in the business aspects of process design and data analysis. The clientele would need Certified Public Accountants to help in setting up accounting and recording systems, including dashboards which aggregate data that is received from the Internet of Things. Furthermore, CPAs may be hired as well to provide opinions on IoT security. Industries and consumers need assurance that systems and information would be private and will not be hacked or they will not use them. When the Internet of Things takes off, CPAs would be asked to give professional opinions on systems that third parties rely on.
Cloud computing is a tool that each accountant could take advantage as a leveraging tool so the accountant could retain clients without the need to slash on fees. With the new technologies, an accountant would be able to provide timely advices and reports so they could still be in business. Accountants could provide real-time perspective to the profitability of their clients via undertaking cost analysis as well as delivering advices on business transformation or expansion. These services are highly in demand by customers who have to make hard decisions.
FINANCIAL SOFTWARE IN IoT
Financial software that is offered in IoT provides a chance to change and boost the accountant-client relationship. Taking advantage of SaaS or Software-as-a-Service, an accounting firm do not have to invest heavily on internal IT personnel or server infrastructure since most of the cloud computing services are on subscriptions. Subscriptions by the month are also very low to inspire accountants to take advantage of an innovative business model. By lowering IT expenses and making information available 24/7 on the web, an accounting firm’s cash flow is greatly enhanced. Accountants should wake up to realize that the present movements in the accountancy area have serious implications and there is a need to make the huge leap to alter the new business model and cost base. Functional departments and businesses such as accounting and the financial sector have to develop their own analytic capabilities. They could not be dependent on vendors in delivering such tools since these tools would unlikely create long-standing, material value for the company.
The Internet of Things has indeed affected the Accounting industry in a lot of ways. There are already changes and still changes to come to boost the accountant-client relationship.