The accounting profession, often a development hub for top CFOs, has faced a variety of pressures. From the criticism of the extensive licensing requirements, and the subsequent shortage that can be partially blamed because of it, the challenge of a proper work-life balance as a CPA, and the new technologies being made available to finance teams, disruption is ongoing for the profession.
According to new data from accounting-focused cloud services provider Rightworks, although technology may help remedy some of the challenges accountants and their teams face, the initiatives to get started aren’t there yet. According to its 2024 accounting firm technology survey, nearly three-quarters (73%) of accounting firm leaders are not using AI in any way.
AI adoption concerns and disinterest
Accountants are hesitant about implementing such a new technology at scale. Nearly two-thirds (65%) said they are only slightly comfortable or not comfortable with the firm using AI. This figure is likely due to a lack of knowledge and confidence around AI —over two-thirds (69%) said they are slightly or not at all knowledgeable about AI in general.
For those organizations interested in AI, most are still in the development phase. Only 4% actively use it in multiple areas of the business. Despite AI’s trendiness, more than a third (35%) said their organizations are not using AI and have no plans to do so in the future.
Despite a majority saying they were not knowledgeable about AI, they seemingly knew enough to identify their concerns with the technology. The top concerns around AI were inaccuracies (58%) and data privacy (55%). Only 14% said their concerns were around its difficulty to use.
Cloud computing’s impact and challenges
According to the data, more than half (51%) said technology has a very positive impact on efficiency and client service for accounting firms. Only 1% said it had a negative impact.
For cloud computing specifically, organizations recognize the benefits, including flexible work hours and ease of use. But, there are reasons firms are holding back. Over four in 10 (44%) of respondents said a lack of technical expertise and resources is to blame, alongside a nearly equal 43% who credit budget as the reason for their slow cloud progression.
Leadership plays a major role in the challenges of digital transformation. Just under three in 10 (29%) said lack of understanding choices around products and services is a contributor to challenges, while nearly the same amount (28%) also say it’s due to internal resistance around new technology as a whole.
Collaboration strain as a result
Due to the pressures on the technology and labor side of accounting, the technology environment’s top weakness is client collaboration. More than a third (34%) chose this response, second only to application performance and cybersecurity (both 15%).
Collaboration efforts, something many CFOs are familiar with, not only rely on technology to be optimal but require those within the organization to be aligned on the challenges associated with the collaboration, whether they be communication or technology-based, so there can be a collective approach to address those concerns.
Only 40% of all respondents said they’re a collaborator and or leader at work, something surveyors suggest may earn them up to 39% more revenue per employee.
Rightworks’ 2024 accounting technology survey was fielded in September 2023 among 493 decision makers/influencers at accounting, tax and bookkeeping firms nationwide to measure usage and attitudes around technology at their firms. The data was published on April 16, 2024.