You’re a CPA, you know tax law and accounting procedures inside and out. Your business thrives off of its ability to provide qualified services based on the latest legislation and industry trends. But you might not be aware that in this turbulent time, we live in, there are 4 things CPAs should know in 2023 and understand. This blog post will equip you with valuable information on the growing challenges facing CPAs in the next few years.
4 things CPAs should know in 2023
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Accountants are needed less and less
The landscape of accounting is changing at a rapid pace. Accountants will never be obsolete, but their role has become less critical in today’s world. The use of technology to perform more and more tasks automatically has taken over the role of accountants, who are now seen as an intermediary between the business and their owners.
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Revenue cycle management is the new norm
RFM (Revenue cycle management) is revolutionizing the way businesses manage their finances. In previous times, businesses would submit a monthly or quarterly tax statement for their clients to assess how much money was owed by them. The actual amounts owed would be determined once a tax return was prepared and filed, which would then be sent to the collector.
This method is clearly antiquated and there is no need to pay a tax preparer to do such an important role. RFM automates these processes, allowing businesses to send out their clients’ accounts in real-time, providing them with the most up-to-date information on their finances.
Contrary to the belief that this tends to increase the amount of taxes owed, it actually reduces overall taxes owed as businesses are able to save daily manual calculations which result in errors when it comes time for filing.
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Online software will become more user friendly
Online tax software has been an innovative addition to the accounting realm, but many CPAs are deterred from using it due to its difficulty in operation. But with growing competition and the need for efficient services, many companies are making great strides in improving the usability of their products.
More companies will begin offering users a pleasant experience, similar to that of familiar open-source software such as Google Docs or Microsoft Office. Additionally, more and more educational platforms will be developed in order to train users on how to use these new offerings correctly.
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More money is being saved by business owners
Business owners are finding new ways to improve their profits and cut costs as a result of such changes. With the economy in such dire straits, more and more local businesses are becoming more frugal when it comes to their spending habits. The need for CPAs to adapt to this new reality will cause them to have even greater responsibilities in bridging the gap between both sides of the equation.
The days of CPAs being sole accountants for small companies might be over, but a well-rounded business management background will help prepare you for any technological developments that could take place in the marketplace, no matter how much they change the industry itself.
