Last month, I received a special invite to an executive roundtable in New York City hosted by the American Institute of CPAs. The AICPA’s event invited 41 technology companies that develop software for the accounting profession.

The roundtable had representation from well-known names Microsoft, QuickBooks, Bill.com and Thomson Reuters. There also was participation from up-and-comer Expensify, a paperless expense management firm, as well as other Silicon Valley technology companies.

Organizers also invited 10 certified public accountants from firms of all sizes. I received my invitation to represent the perspective of some 39,000 small firms across the United States. The objective of the roundtable is for each of the tech companies to present on current product developments and roadmaps for the future. The CPAs are invited to provide the tech companies their perspectives on the needs of the accounting profession.

The presentations of the tech companies made me enthusiastic about the work I do. There has never been a better time to be a CPA because of the work being done with technology.

In with the new
“AI is the new electricity.” That statement was made by Stanford professor and computer scientist Andrew Ng.

For the past many years, artificial intelligence has been presented as a concept that will transform our daily lives – including how we do business.

Ng was staking a claim that AI is no longer futurist, geek speak. Instead, it is real. It is here. And it already is a bare essential for our daily lives – such as electricity.

AI is the technology that makes self-driving vehicles a possibility. Self-driving vehicles are no longer futurist, geek speak either. The innovation is here. Now, it’s just a matter of governmental regulation catching up with the technology. So, while most of the world is still grappling with understanding the depths of AI in general, innovators of tech companies are moving on to the next big thing: voice-activated AI.

Voice assistants in business
Voice assistants are becoming common household items. Apple’s Siri, Amazon’s Alexa and Google Home are part of our daily lives.

“Hey Google, add milk to the grocery list.” Or, “Alexa, set my alarm for 6 a.m.” If these voice assistants can help us master our personal lives, why can’t they help us master our work lives? They can, and they’ve already started.

As a business owner or entrepreneur, can you imagine a day when you come into the office, sit down at your desk with no keyboard and have this type of conversation with your accounting system: “Hey QuickBooks, show me all the bills I need to pay this week.”

“OK QuickBooks, pay the rent and utilities with an ACH transfer on Friday.”

Of the 41 tech companies represented at the event, the overwhelming majority of the companies’ roadmaps for future products included a form of voice-activated AI. In fact, at the end of the event, there is an award presented for Most Compelling Presentation as voted on by the attendees. This year, it went to Chata.AI, a tech-company laser focused on integrating voice-activated AI into our accounting systems.

Why speech?
Am I the only one who is challenged by a constantly growing to-do list? Do you feel it’s a vicious cycle of whack-a-mole for you?

As quick as you mark through items at the top of the list, do twice as many items fill up the bottom of the list? In these days of constantly wearing our busy badges and crowded to-do lists, where is the life-preserver?

The roundtable event helped me understand that voice-activated AI could be that life-preserver for all of us in accounting. Why? A simple presentation slide from the event helped me gain this understanding. A person with average typing skills can type 39 words per minute, but can speak 130 words per minute. That’s 233 percent faster. Even a slow-talker like me can win a race against the fastest typing.

This should give us hope for gaining more productivity in our daily lives.

New horizons
Have you ever observed a child using voice-activated tech? For example, asking Siri to call a family member on FaceTime or play a song? Search it on YouTube for a laugh. And the next time you see this, pay attention to the pure joy on the child’s face when the tech does what it asks. It’s fascinating.

As a CPA, I am joyful about this technology; same as those children experimenting with the technology. I welcome it to the accounting profession with open arms. AI and VA-AI are not about job replacement for CPAs and accountants; it’s about embracing and leveraging the tech so we can provide greater service for our clients. It allows us to truly become a trusted business adviser.

There is no aspect of the accounting profession left untouched by technology, and no corner left unimproved; if there is any lesson to be drawn from the very wide range of tools our editors singled out as the Top New Products from the past 12 months, that is surely it.

From tools that create better methodologies for auditors to platforms that leverage the power of vast pools of data to help accountants offer insights to clients, and from solutions for soothing a client’s fears about an IRS notice to security tools you can carry in your wallet, this year’s picks reach into every part of the profession to make it more efficient, more valuable to clients, and more profitable for its members.

With that in mind, enjoy this year’s roster of the Top New Products!

Three winners have been named by a startup accelerator sponsored by the Association of International Certified Professional Accountants and CPA.com.

Winner Gappify is a San Francisco company that uses bot technology – “dubbed Alan” – to automate time-consuming, repetitive tasks for corporate accounting teams in areas such as accounts receivable, accounts payable and general ledger.

Client Hub is based in Gainesville, Fla., and provides a communications platform for accountants and clients through an all-in-one workspace and mobile app, aimed at eliminating the need for email conversations and easing the delivery of critical data.

Finally Dryrun, based in Canada, make a cash flow solution, cash flow being one of the most critical pieces of information for small businesses.

“The value proposition for these companies is they get access to insights from senior leaders of the Association and CPA.com, as well as a panel of distinguished advisors with deep ties to the accounting profession,” said Lawson Carmichael, chief operating officer of the Association. “And for us, the program keeps us connected to front-line innovation.”

Each winner will be given the opportunity to present information about their company in June at AICPA ENGAGE, the American Institute of CPAs’ annual educational and networking conference (the Association of International Certified Professional Accountants is a joint venture between the AICPA and the Chartered Institute of Management Accountants, a professional member organization for U.K.-based accountants). They will also get a nominal funding investment and guidance from a panel of experts in the profession on marketplace needs.

The startup accelerator was set up two years ago to promote innovation in the accounting profession and give the Association and CPA.com more visibility into disruptive trends from emerging technologies.

“Early-stage technology companies are driving great innovation and new capabilities for the CPA profession,” said Erik Asgeirsson, president and CEO of CPA.com, the technology subsidiary of the AICPA. “We got great feedback from our first class of companies last year, and we expect to build on our progress with this current group of innovative startups.”

The future of audit lies at a point where assurance and advisory services converge, according to CPA.com president and CEO Erik Asgeirsson -- with technology driving the two together.

“It’s all about assurance and advisory,” Asgeirsson told attendees at the Digital CPA Conference in Washington, D.C., last week. “It’s about delivering trust plus insights.”

In his keynote, Asgeirsson described a new audit model that leverages the cloud to use automation, artificial intelligence and even blockchain to improve the audit and deliver more value to clients and markets.

“An AI-driven audit is going to provide greater assurance around the integrity of data,” he continued. “It’s going to provide great value to the capital markets.”

The cloud, and the ability to share information instantly and accurately that it provides, is fundamental to much of this change. “You couldn’t have cloud auditing until you had cloud accounting,” he noted, and reminded attendees, ”We’re only in the third inning in the cloud accounting transformation.”

More power for accountants

In many ways, the technology has only just begun to enable the kind of convergence Asgeirsson described.

“We’ve just reached the point where the technology is allowing us to fully realize the CAS vision,” said Aaron Harris, senior vice president and head of engineering and technology at Sage Intacct, who joined Asgeirrson on stage at the conference. “CFOs and accountants have been held back by periodic repetitive tasks. All of that is not giving them enough time to work on what we got into the profession for in the first place – helping organizations to thrive.”

What’s more, there’s now an unprecedented amount of raw horsepower being applied to handling basic tasks and freeing up accountants and finance professionals. “The idea of unlimited computing power is driving a lot of what we’re doing in technology,” he continued. “Of the 10,000 CPUs we have running, only about 30 percent are devoted to humans – the rest are dedicated to automation.”

All of that has allowed technology to develop systems that do more than just handle the basics. “The last generation of finance products was about making sure you had enough information to work on,” Harris said. “Now we want systems to optimize performance – to find the answers you need. The future is about what you do in situations where you don’t know what questions to ask. That will give us the opportunity to look to the future, to identify risks and opportunities, and to help leadership prepare for those.”

These kinds of technology-enabled solutions will offer firms the ability to move many of their services up the value chain.

“Audit can become a strategic value-add for organizations, whereas today it’s mostly viewed as something I have to do for compliance,” Harris concluded. “The $40 billion the Big Four make on audits will become $100 billion in added-value audits.”

The AI-driven audit

Focusing on audits, Asgeirsson described a new model where data flows automatically through the cloud into an advanced platform for an AI- and data-driven audit.

To create that platform, the American Institute of CPAs has raised money from the top tier of accounting firms and partnered with audit software developer CaseWare to build a Dynamic Audit Solution.

The DAS will take advantage of enhanced data flows, the use of artificial intelligence to make predictions, and improved methods for continuous auditing to make audits more efficient, and more valuable to clients.

“We don’t want to automate the audit to the point where people aren’t involved,” said Karen deSouza, head of product at CaseWare, who joined Asgeirsson during his keynote. “We want AI to point out risks and help.”

With the vast amounts of data currently available, AI systems can learn to identify data and how it’s usually classified.

“We’re looking at using AI to tag client information as it flows into the audit system – that will save a lot of time and improve quality,” said deSouza, “but risk is where AI can really deliver value – learning from all transactions where the risk lies.”

By tagging data appropriately, recognizing patterns in data and comparing them to millions of previous situations, smart audit systems should be able autopopulate engagement documentation and identify areas of risk for human auditors to concentrate on.

“The AI-driven audit should improve audit efficiency and improve the quality and the value we bring back to the client,” said deSouza.

For accountants who embrace these technologies and focus on bringing them to their niches, there are tremendous opportunities, Asgeirsson told conference attendees.

“It’s never been more important to specialize and to deliver insights, value and trust,” he said.

From audits to firm structure, accountants need to start disrupting most aspects of their profession, or they risk being left behind, according to American Institute of CPAs president and CEO Barry Melancon.

In a keynote address on the state of the accounting profession at last week’s Digital CPA conference in Washington, D.C., Melancon told attendees, “Just because we are where we are and we’ve earned a great position, we can’t stop. You can’t hit the pause button.”

“Being in a great position doesn’t mean we get to be here forever,” he continued. “Even with audit, even though it’s written into all state laws that only CPAs can perform them – that doesn’t have to be forever.

Melancon cited the example of Sears – a company that was both highly innovative (it pioneered mail-order, for instance, and more recently helped create an early Internet service, Prodidy) and a cornerstone of the economy – that failed to keep up the pace.

“They were on the leading edge, but for some reason, in the span of a moment, they missed, they stopped – and they paid the ultimate business price,” he said.

To underscore his point, Melancon noted that since 2000, 41 percent of consumer-centric companies in the S&P 500 have been acquired or gone out of business – while over the same period, 39 percent of members of the AICPA’s Major Firms Group were either merged or acquired out of existence.

Given the pace of change in technology and the broader economy, he explained, it is incumbent on the profession to take up the hard work of disrupting itself based on the profession’s premiere asset: trust.

“We have an incredibly important role in providing trust – we as a society don’t trust anything. We don’t trust our government to a large degree, we don’t trust our media, we don’t trust big companies, we don’t trust religious leaders, we don’t trust the Internet,” he explained. “Accountants have the highest trust factor – right now, today, in today’s fast-paced world, we have earned and enjoy trust we can build on to help the world and to help our clients sort things out. That’s our opportunity – but that means we have to take some risks.”

Risks and opportunities

The profession has already begun exploring new areas, particularly in audit, Melancon noted, and those explorations are themselves pointing to further opportunities.

“Today, tens of thousands of SOC reports are being issued, and we’re looking at building out from that experience to create new services – on smart contracts, for instance, or blockchain,” he said. “So when someone says, ‘My blockchain service does x,’ people will want attestation that it really does.”

To go further, though, will require the profession to create and embrace change.

“When we look at our core services, like auditing – do we have the guts to disrupt those? I think we do,” he said, citing the OnPoint PCR tool created by the AICPA and CPA.com, which puts artificial intelligence and cutting-edge technology at the disposal of smaller firms.

The AICPA has also raised $45 million from the top 80 firms below the Big Four to create a Dynamic Audit Solution aimed at applying the technologies of the future to this core service of the profession. “We went to the next 80 firms and said, ‘Do you want to do something in a new way? And look at it in a big new way?’” Melancon explained.

Audit and beyond

While building its own tech will help the profession manage its own disruption, that isn’t all it will have to do, Melancon warned.

“Reimagining the audit is going to require us to rethink our competencies. We’re going to have to have a thick skin and commit to this change,” he said. “You don’t get permission to evolve what an audit is if you’re not delivering right now – so we’ve had a focus on improving audit quality for the next five years. We have to have that quality to experiment going forward.”

That quality, tied to the profession’s trusted advisor status, should open plenty of doors in the future. “We believe regulators and the consuming public will come to require third-party attestation on whether companies are doing the right thing in cybersecurity,” Melancon offered as an example. “Don’t we as a profession have an obligation to think about how we attest to a broad range of things – what about sustainability, integrated reporting and so on?”

10 years down the road

Looking beyond the near-term, Melancon extrapolated on current trends, like the fact that among the Top 100 Firms (excluding the Big Four), only about 20 percent of service personnel are CPAs.

“How do we actually define ‘CPA?’” he asked, positing a world where changing client needs and demographics lead more and more firms to hire non-CPAs, leading to firms that are CPA-led, as opposed to having CPAs all through the staff.

He also envisioned major changes in the core skill sets of the profession. “In a decade, there won’t be a need for us to have deep learning of an accounting standard,” he said. “We’ll have bots for that. We’ll need higher-level skills.”

Perhaps most important, he thinks accountants will need to be ready to radically reimagine the field.

“In the early days of the profession, tax wasn’t part of our work. It was only after the income tax amendment that we saw the opportunity to bring it in as a core part of our profession. Audit wasn’t either, but in the 1930s, we took that in as a core part of our profession,” he explained. “Our challenge is to see the new opportunities, and to take those on. If we don’t do that, we aren’t guaranteed our space. But if we take them on, our opportunities are endless.”