Have you transferred your
data to the cloud?

Nearly three out of four accountants are well on their way, with 38% saying their data is fully in the cloud and 35% saying they are in the process of migrating. However, for the 27% of accountants who are not currently transitioning to the cloud, they risk falling far behind.

Critical functions from expenses, billing and AP, to month-end close and financial reporting are now by and large performed with the aid of technology. However, a small minority of accountants are still using manual or paper-driven processes for these functions.

Accountants Currently Using Technology to Support

Other key functions, like lease accounting, inventory and auditing are prime for technology enablement and likely where many will invest next.

Today, less than half (46%) of accountants report using technology for lease accounting, which means too many organizations are still relying on spreadsheets and tracking down contracts buried across departments or in drawers.

While some small companies may be able to sustain this in the short-term, inefficiency is particularly costly in a downturn, and leveraging software to track and manage leases can not only save time and avoid compliance headaches but also reveal cost-saving opportunities.

Automation is now an accountant’s best friend.

Accountants have a long list of responsibilities they wish automation could simplify. Automation frees up time by replacing manual tasks from data entry to time tracking, so accountants can focus on higher-value work. As accountants’ roles become more analytical, and clients request new services, faster reports and more insights, automation is a critical strategy to meeting those needs.

Outside of data entry, accountants are also looking for automation to streamline time tracking and reporting, and client onboarding. This trend is likely to continue, even amid economic and cost pressures. According to a Gartner survey, 98% of CFOs say they will not be cutting tech investments and will actually invest further in automation to reduce costs and increase efficiency.

Automation is recession-proof and resilience-enabling, keeping accountants flexible to meet emerging needs and client demands.

However, accountants are clear on their needs and drivers for tech investment: capabilities, compliance and costs.

Both of the top two cited drivers for technology investment are related to increasing capacity to perform individual roles—through efficiency and optimized processes as well as time-saving automation. This is more essential than ever as accountants continue to serve a wide range of needs from traditional tax and audit services to more consultative and advisory capabilities that include CFOs and supporting strategic decisions.

ROI of Previous Accounting Technology Investments

Additionally, technology is now a proven value and tool for compliance. From ensuring data is correct and treated appropriately, to making sure deadlines are met and filings are submitted, technology helps accountants lower risk for their companies or clients—generating loyalty in the process.

But as with any investment, it comes down to the bottom line. While 25% of accountants are investing in technology to cut costs, they will be laser-focused on the ROI of their spend.

That’s due in part to previous challenges. Just 22% of accountants say their prior investments in accounting technology were very successful. There’s room for improvement for the 53% who reported they were only somewhat successful.

In fact, some accountants may have lingering challenges from previous mistakes or technology initiatives that failed in the past. About 13% report previous efforts were very or somewhat unsuccessful, which could be informing the 10-15% of firms who are behind in their maturity and cloud use.

In short, they may have been burned in the past by the wrong solution or insufficient training and are therefore reluctant to try again.

It turns out accountants’ biggest problem with technology isn’t anything very technical at all… it’s people.

When asked about their top challenges with accounting technology, internal change management, adoption and training was the most cited option.

Too often, accountants will have a limited number of champions in their firm or organization for buying into new technology, only to have it stall in the rollout. Change management is one of the biggest hurdles and the hardest for which to solve because no simple solution exists, and it requires coordination, consistency, communication and proof points to keep up the momentum.

Tech Tip

To increase or speed up adoption, ensure you have executive buy-in and sponsorship at the highest levels of the organization, in addition to champions across departments or practices. From there, look for ways to capitalize on early wins – if a colleague begins to save time during month-end close, make sure to share the case study so others are motivated.