What other advice do tech vendors have for 2024?

January 3, 2024 9:00 AM

Artificial intelligence is not the key to having a successful 2024. While a major proportion of software developers in the accounting solutions space said their No. 1 tip for professionals was to learn AI, this is not all they had to say. The new technology is certainly a part of the equation, and has been mentioned numerous times even in passing, but solution providers say there's more for accountants to think about as they head into the new year.

Outside of learning to work with AI, software companies also stressed the importance of keeping up with regulations (especially those surrounding cryptocurrency), focusing on data accuracy and protection, seeking out software integrations for greater flexibility and automation capacities, embracing innovation and disruptive technologies, focusing on long-term technological solutions versus short-term fixes, and critically evaluating the current tech stack, among many other things. When it comes to technology, it would seem, accountants will have their work cut out for them in 2024.

Below are the responses we received from technology companies to the question: "What overall technology advice would you have for accountants heading into 2024, other than buying your products and services?" While some of their responses mentioned AI, they did not center it in their advice.

Audit Dashboard

https://www.auditdashboard.com/

Given the accelerating pace of change and an increasing number of solutions available in the market, I expect to see CPA firms in 2024 buying technology like they're at a casino - making lots of small bets, spreading their chips around the table, and being cautious about going all in. It's certainly one approach, but we all know who wins at a casino. Instead, I advise firms to hire the best technology solutions to solve the most significant pain points without sacrificing agility. Don't lock yourself into something that will take you years to terminate. Ask yourself what won't change in 5 years, and invest heavily in those areas.

Avalara

https://www.avalara.com/

The labor challenges in the accounting profession are well documented. In fact, a survey commissioned this year by Avalara found that 84% of CFOs face a significant talent shortage within their accounting and finance teams. This will remain an ongoing industry dynamic for the foreseeable future. Therefore, embracing technology automation platforms and tools from leading providers should enable accounting firms to continue scaling their businesses with improved costs. In addition, these technology platforms are increasingly leveraging new AI capabilities to deliver value and support quicker and more economically than ever before.

Bitwave

https://www.bitwave.io/

In 2024, accountants dealing with digital assets like cryptocurrencies, NFTs, and stablecoins will need to prioritize specialized software. Extracting and organizing blockchain data for financial analysis and compliance, especially in integrating it with accounting systems or ERPs, is complex and necessitates advanced tools. With digital asset regulations evolving, including the anticipated ASU in December requiring firms to account for digital assets at fair value, staying informed and adaptable is crucial. Moreover, the proposed broker reporting rules and 1099-DA reporting requirements underscore the importance of using reliable software for tracking the cost basis of digital assets. Accountants must be proactive in adopting technology that not only ensures accuracy and efficiency in financial reporting but also aligns with the shifting regulatory landscape to maintain compliance and strategic financial management.

Botkeeper

https://www.botkeeper.com

Heading into 2024, accountants should focus on a balanced, tech-smart approach:

Smart Automation: Embrace AI for analytics that not only impress but also simplify your workflows.
Adaptable Tech: Choose tech that keeps pace with your clients' growth – it's the smart way to scale.
Beyond CPE: While CPE is valuable, don't limit yourself. Stay abreast of tech advancements to truly keep your edge sharp. It's not just about credits; it's about staying ahead in the game.
Data-Driven Insights: Leverage data to unlock strategic insights for your clients – it's about going deeper.
Boost Collaboration: Use technology that strengthens team dynamics and client communication. Good for you, your team, AND your clients.
Don't be intimidated by Client Advisory: It's easier than it seems, with the right tools streamlining complex tasks and data interpretation.

Looking forward to 2024, it's all about being the tech-savvy accountant who simplifies, scales, and stays ahead—your edge awaits.

Caseware

https://www.caseware.com/

Technology advancement will continue to be the lever which accelerates the evolution of accounting and audit firms. Adopting new technology remains challenging for some, but you must start the journey to avoid being left behind. The approach leaders within firms take to manage the change process will be significant. The profession has a reputation for being change-averse; however, most of us welcome change if we believe the change will be beneficial to us. Leadership buy-in, gathering feedback from everyone across the practice from start to finish and transparent communication will all help ensure a smooth transition.

I encourage the profession to embrace the possibility and potential of what technology can deliver. Deployed in alignment with a firm's strategic vision and objectives, technologies such as cloud, intelligent automation and analytics continue to further elevate the profession, in exciting and inspiring ways.

Client Hub

https://clienthub.app/

1. Identify what the biggest challenge is in your firm that affects your productivity and your bottom line and focus on a solution that will help to solve this challenge.

2. When looking at solutions, don't get distracted by the "nice to have" features that don't solve for the challenge that you have identified.

3. Listen to the solution experts and be prepared to shift your current processes to use a solution the way it was designed to be used.

4. Invest time, money, and internal resources in the onboarding process and team training for any new solution you implement.

5. For client-facing solutions, make sure to communicate the change to clients and let them know how this change will help them be more productive.

6. If implementing a client portal, select a solution that delivers added value, and an amazing client experience and makes it easy for your clients to work with your team.

CloudCapcha

https://www.cloudcapcha.com/

Invest in technologies emphasising data accuracy and real-time accessibility. Utilise cloud-based systems for seamless integration and strong data protection, ensuring your teams access accurate, current information for informed decisions.

Prioritise platforms that support automation and AI. Automating repetitive, less complex tasks not only boosts efficiency but also minimises the risk of human error, ensuring a much higher level of data accuracy.

Shift focus towards platforms that integrate and coherently manage employee performance data. A holistic strategy that amalgamates this data into a unified data lake leads to greater, more meaningful insights. A consolidated view of employee data provides actionable recommendations for performance enhancement and well-being monitoring. A multifaceted strategy fosters a healthy, efficient workforce and drives your firm's success by transforming disparate data into valuable insights.

Remember, your team is human. Provide visually pleasing applications. Outdated interfaced apps can reflect a firm's attitude towards its staff more than often recognized.

Corvee

https://corvee.com/

Accounting firms should embrace and institutionalize innovation from within. We often observe staff within firms discreetly leveraging low-cost or free technologies to dramatically enhance their productivity. These practices have inadvertently led to a shadow culture within firms.

It's time for leadership to foster openness, to ask: "What tools are you finding effective?" This can propel the integration of these technological advancements into mainstream practice. Encouraging this curiosity can be transformative.

By formally adopting these technologies and integrating them into the firm's workflows, not only can we potentially see a more vibrant work environment but also anticipate a surge in productivity. As staff workloads decrease by a feasible 10-30%, the productivity metric could soar by 40-70%. This is not merely an incremental change but a radical reinvention of the accounting profession as we know it, poised to elevate the field to unprecedented heights of efficiency and effectiveness in the years ahead.

Drake Software

https://www.drakesoftware.com/

The tax preparer's responsibility to maintain security for their firm and their clients continues to increase. As we enter tax season, plan ahead for how you will exchange information with your clients. Communicate with them in advance regarding how to send their data securely, making sure they understand that they should not use text message or unsecured email attachments. Offer a secure portal for digital document exchange and be sure to tell your customers about this option before it's time to submit documents, ensuring a secure and efficient process. It is important to set the expectation with your customers that your firm values security and will follow industry best standards to protect them.

Expensify

https://www.expensify.com/

Something we've long promoted at Expensify is focusing on implementing solutions that you believe in for the long-term, and that you feel can support and grow with your business. No one wants to be switching programs every year or two, or dealing with the hassle of repeatedly off-boarding and onboarding your team onto a new system. So our advice for 2024 is simple: focus on technology that you believe can support your business as it shifts and changes throughout the years.

FreshBooks

https://www.freshbooks.com/

Accountants should strategically choose technology that helps strengthen client relationships and enhances their overall experience. Look for accounting tools that allow for real-time collaboration and data sharing so you can shift your focus from admin heavy work to providing meaningful advisory services that your clients value. With a shortage of talent in the accounting profession, scalability in technology is essential. Choose tech that can grow with your firm's needs and enhance your niche expertise by allowing you to serve more advisory-tier clients. Ultimately, choose the tech that can transform your role to a partnership-driven, advisory-centric approach where your experience guides client success.

Gusto

Gusto.com

My advice transcends any specific product or service: Embrace the power of continuous adaptability. To thrive, accountants must become tech-savvy professionals who harness innovation to provide more client value.

First and foremost, invest time in upskilling and staying current. Attend webinars, workshops, and online courses on emerging technologies such as artificial intelligence, and explore how they can optimize your clients' financial operations.

Secondly, foster a culture of innovation within your practice. Encourage your team to experiment with tech solutions that streamline processes and enhance client services. Embrace automation where it makes sense, allowing your team to focus on higher-value tasks like strategic advisory services.

Lastly, don't hesitate to collaborate and network with technology experts outside the accounting sphere. Leverage their expertise to identify innovative ways to solve complex financial challenges.

In this rapidly changing landscape, your ability to embrace technology and adapt will be your greatest asset.

Ignition

https://www.ignitionapp.com/

In 2024, accounting firms must monetize scope creep, to remain profitable. A culture of overworking and undervaluing time is entrenched in many accounting firms. Out-of-scope work costs US accounting and bookkeeping firms over $76,000 per year on average according to Ignition's state of client engagement report. Additionally, 95% of accounting professionals have experienced clients not being billed for out-of-scope work. With inflation and interest rates to remain high well into 2024, accounting firms can actually no longer afford to work for free.
2024 will be the year of 'change management'. An Ignition survey found the top three challenges for firms today are staff shortages, inefficient and manual processes, and too much client work. To tackle these challenges, firms will need to face them head-on by looking at more efficient ways to operate their firm and leverage technology so they can remain competitive and profitable.

Insightsoftware

Insightsoftware.com

Instead of fitting specific technology into your workflow, look at how the technology can best support your current work. To be more specific, when preparing to use new technology, like AI, start with what you want your outcome to be first. By understanding what you want the impact to be, then looking for the right tools and data to solve it, you can inform what is required and the steps you need to complete it. For instance, one of the biggest challenges accountants face today is a lack of bandwidth and an overload of repetitive, manual tasks - like reconciliations and generating reports. Ultimately, accountants should be trying to do more with less. Understanding this goal, they can then seek tools that effectively decrease this manual work and free up time for more valuable tasks, like financial planning and analysis.

InterVal

inter-val.ai

Heading into 2024, firms should prioritize optimizing efficiency and revenue generation through CAS when considering their accounting tech - streamlining processes and alleviating the strain on your understaffed team, all while finding the best opportunities for revenue is key. Firms should ensure their tech partner emphasizes robust research and development and is well-versed in accounting intricacies, understanding the unique challenges of the profession. This guarantees their solutions evolve with the dynamic nature of the accounting field, staying ahead of industry trends and technological shifts. Prioritizing time-saving measures, aligning with knowledgeable partners, and embracing innovation through continuous R&D will empower accountants to thrive in the ever-evolving technological landscape, enhancing their overall effectiveness, adaptability and growth.

Intuit

Intuit.com

Embrace new technology rather than fear it. Evolution and adaptation within any industry or profession are integral to achieving longevity and success. And while feelings of fear can be overwhelming, 82% of accountants say they're able to have more quality interactions with their clients because of the support of technology. Whether it's the Cloud or AI, accountants who are open to experimenting and adopting innovative technologies push the industry forward, create new efficiencies, and deliver better strategic counsel to their clients, often resulting in better business outcomes for firms and their clients.

IRIS Software

https://www.irissoftware.com/

In 2024 many of the challenges firms face today such as the accounting shortage will persist and as a result firms will need to look for ways to drive efficiency. One of the ways to achieve time savings with technology is to look for seamless integration. Manually moving data or documents from one system to another is time consuming but seamless integration can give accountants time back in their days to focus on client services.

Additionally, for firms that have not made the jump to the cloud – the time is now. By making the move to the cloud, firms can benefit from real time insights to become a more strategic advisor to their clients while protecting the security of client data. Some firms may fear the complexity, cost, or possible service disruption to their business by making the switch but in the long run it will help enhance client satisfaction and foster continued growth.

Laurel

laurel.ai

Our perspective is a warning: Abandon empty digitization and data-driven rhetoric. Accounting workloads are ballooning in volume and complexity, severely outpacing new incoming talent. This trend is untenable. Blindly adopting technology is not the answer; the shift from paper to databases, meant to reduce workloads, has ironically compounded them.

Firms are awash with digital data yet lack insights for navigating a volatile economy and flat-fee client demands. Technological updates have been superficial; we must progress from simple digitization to strategic data application. Prioritize systems that not only gather data but also refine it into an operational asset that bolsters client services. Prioritize data enrichment as a key strategic pillar to confidently steer through the late 2020s, or be at risk of faltering as the industry transforms.

LeaseCrunch

https://www.leasecrunch.com/

Accountants are wonderful "do it yourself"-ers due to a persistent lack of cost-effective technology available in the market. While the spreadsheet can be an amazing tool for some situations, using it extensively undervalues your time and can often result in errors. We believe that 2024 will result in all sorts of accounting technologies becoming increasingly accessible from a cost and use standpoint. This is the year firms should look at what can be automated to ensure their time is spent on analysis and not updating spreadsheets.

Ledgible

https://ledgible.io/

We highly recommend accountants and professionals stay on top of changing regulations around digital assets and tokenization. While not every accountant will have exposure to the industry, those that do will need to keep their finger on the pulse to remain complaint.

Liscio

https://www.liscio.me/

We are in a new era of accounting. Both clients and employees expect effortless experiences. These expectations are driving a market-wide shift that has already seen 1-in-5 accountants change jobs in the last two years and a host of new firms enter the market.

Our advice would be to identify patterns in consumer expectations and adapt your business to meet them. These patterns include 24/7 client self-service (think online banking), modern interfaces that employees enjoy using, and open-architected systems that work well with other vendors.

Mango

https://mangopractice.com/

The number one piece of advice we give accountants all the time is not to get something new but to get rid of useless tools and processes. Especially when it comes to tax season, the last thing you need is bottlenecks or tools that slow you down. If you are still using a filing cabinet to manage documents, throw it out and go digital. Speed and efficiency in finding and sharing documents will not only improve your output but will create a better customer experience for your clients. If you aren't maximizing your time wisely, you'll be swimming in paperwork before you know it.

The other advice we share often is to make it easy for your clients to pay. Integrating electronic payments into your business is crucial to scale and generate velocity in your business.

Numeric

https://www.numeric.io/

The expression 'There are decades where nothing happens; and there are weeks where decades happen.' very much rings true for tech in 2023. The level of advancement in the last 6 months in accounting tech is massive.

The number one piece of advice we have for teams: 2024 is the year to take a step back and critically evaluate your tech stack. Explore new products, schedule trainings for new features for your existing product set, attend webinars on advancements in the space, read through product update emails.

And yet the need to trial products you're evaluating is even more critical given not all tools created in the current boom are good fits. We're increasingly seeing the try-before-you-buy motion that's been popularized in other sectors finally coming to the accounting tech space and encourage accountants to, where possible, use the tools they're interested in prior to making the investment leap.

Quadient

https://www.quadient.com/

We anticipate that the unrelenting labor shortage and a volatile economy will continue to pressure accounting teams, raising the risk that accountability and integrity at businesses could suffer.

Accounting teams should continue to refine their tech stack, taking advantage of next-gen finance cloud software. With fewer and fewer young people showing interest in finance careers, technology can help teams maintain quality work with fewer people. Meanwhile, the young professionals who are rising up in the field expect teams to have access to technology for automating tedious manual processes, improving accuracy and freeing up more time for strategic decisioning. They may not accept positions in organizations lacking in modern technology.

AI will continue to be a focus in 2024. Accounting teams should embrace AI and leverage it, but be cognizant and wary of security. Be sure that however your team is leveraging AI, it is in a secure environment.

RCReports

https://rcreports.com/

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When evaluating technology, ask yourself these questions:

Will this piece of technology save me time? If so, how much?
Will this piece of technology improve an existing process? Either by saving time, making things more secure, doing better calculations/analysis, etc.
Will this piece of technology help me add a valuable service that I don't currently offer clients?

If you answer no to all of the above, you don't need that tech. If you answer yes to any of them, it's worth diving deeper.

ShareFile

https://www.sharefile.com/

Invest in providing a great client user experience to help improve growth and retention among client bases. Further benefits include leading service experiences that open the door to charging a premium for the value that can be provided over competition. Most importantly, improving client experience will improve on-time response rates, streamline client communication, and reduce administrative support tasks that are often a burden on 'overtaxed' staff.

With employee retention being a top concern in the industry, reducing friction for staff must be a top priority. What's more, top performing firms won't discount the ability to reduce the friction that comes from the client themselves. A unified, easy-to-use digital solution can improve experience on both sides of engagement and improve firm margins.

TaxBit

https://taxbit.com/

We continually encourage companies and accountants to look to the future in this ever-evolving industry. The pace of innovation and technology enhancement is amazing! As you design processes and select systems and solutions to integrate into your middle and back office functions, choose partners who will be able to keep pace with your evolving needs and the changing regulatory landscape. Select partners who have the financial capital, reputational credibility, and proven thought leadership to continue investing in your business needs. Know that there are solutions that can greatly improve your operational capabilities in a cost-effective way.

TaxDome

Taxdome.com

Leverage video as a sales tool and as a customer interaction tool for a better customer experience. By adding video elements to your client experience, you can create a feeling of personalization that does not exist with pure text, especially in an environment where more and more interaction is remote.

In TaxDome, we make enabling video communication a core part of client-facing features, including Proposals (where you can insert customer testimonials, talk about your experience with this specific client niche, etc), organizers (where you can add videos of why you're asking a specific question, where you can explain tax law changes, etc) and secure chat (where you can add a video review of their tax return or other deliverable).

Tools such as loom are fantastic at making this once expensive endeavor quick, easy and affordable.

Tipalti

https://tipalti.com/

Choosing accounting software can be overwhelming, which is why accountants should prioritize solutions that can be customized, while offering capabilities to streamline, enhance visibility and controls, automate manual processes and increase efficiency. One way to do that is with end-to-end automation to eliminate workloads, accelerate financial close, improve accuracy, increase security and strengthen scalability.

For businesses with lower budgets, the cost of this software can be more affordable than hiring additional team members. Without automation, a company may have needed multiple accountants to adequately staff the workload, but with robust software solutions, they can now meet deadlines without hiring or burning out staff.

Ultimately, accounting is not just about daily operations, but contributing value across the company and taking advantage of tools that allow you to do that by promoting efficiency and accuracy.

Visual Lease

https://visuallease.com/

We asked senior accounting and finance executives at companies with more than 1,000 employees their top criteria were for selecting new financial technology:

Supports collaboration among cross-functional teams (32%) – when your primary goal is to unite data views, it's critical you implement a system that supports collaboration across all of the teams interacting with the data sets.
Ability to address more than one business need (23%) – it's important that, when selecting new technology, you're able to see exactly where it can add value to your business.
Strong user reviews and customer sentiment (21%) – look for providers that walk the walk when it comes to customer relations.
Proven ability to integrate with existing systems (16%) – by prioritizing solutions with strong integration capabilities, professionals can benefit from a united data view that draws information from across teams and other systems.

Wolters Kluwer

https://www.wolterskluwer.com/en/solutions/tax-accounting-us

The number one piece of advice I would give to accountants heading into 2024 regarding technology is to ensure that they have a complete understanding of the solutions they already have in place within their tech stack! Studies have shown that most users do not capitalize on the full capabilities of them technology already available to them. I would also suggest they stay informed on the updates and enhancements to those software solutions with a particular focus on how the new features and upgrades help populate data, enhance software integrations, and automate processes. Finally, we are always looking for ways to innovate our solutions here at Wolters Kluwer and have been incorporating AI technologies, such as predictive intelligence and machine learning, for several years. It's critical for accountants to stay ahead of the curve here in order to remain truly competitive in the coming years.

Xero

Xero.com

Instead of looking at new technology through the lens of hype, you should look at it from the perspective of 'how does it help my business / clients?' There's no point having an exciting new tool or technology if it doesn't give you the information you need. To do that, you should think about your business vision and its purpose, knowing the trade-offs, and knowing the risks. If you have a clear vision and well-defined purpose, and if you know where you want to be and the values that underpin your decisions, then you know whether the trade-off is worth it. And then you also can carefully assess the risk. With AI being a huge consideration for businesses this year, we created an AI guide to help accountants and bookkeepers consider how it can help their practice, what to watch out for and how to mitigate risk along the way.