2. Introduction
Technology and how it affects Accountants!
Things, they are a changing. . .
“We’re talking about a time in human history when you can take a
picture of a check with your phone to deposit it in your bank account,
and do it while you are in-flight. A time when you can pay $15 for two
doughnuts simply by swiping your card through a tiny piece of plastic
attached to an iPod”
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3. The Big Trends
Security, digital, physical and virtual
The Changing of the Guard
The Cloud
Artificial Intelligence/Wired World
Automated IRS
Virtual Offices, Staff, Clients, Currency
Social Media
Block Chain
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4. Eight Changes to Take Notice Of
1. Google just keeps on going – Google Hire goes online
2. Microsoft continues its push to ditch the password – MS believes in the future of biometric login authentication
3. Amazon starts “Subscribe with Amazon”. – What they sell is mind boggling and the Amazon entry into the Rx
market is likely to change how Americans buy their prescriptions. When will they enter into financial services.
4. Volume versus price – Cents per transaction versus dollars will define commerce.
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5. Eight Changes to Take Notice Of
5. The Demand Economy – Steady employment is at risk as more individuals work only when
needed.
6. Facebook’s Workplace – AI inserts itself into the service business, the Facebook model
chatbots guide customers through decision trees.
7. Digital Marketing Gains – Ads in print media continue to disappear as targeted mobile ads
replace them.
8. Twitter Introduces Live Video – Sharing information will change as video replaces text and
phone.
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6. The Strategic Trends of 2017
Much of this is big guy toys but economies of scale and cloud applications will change this:
AI and Advanced Machine Learning
Intelligent Apps – Virtual Assistants and Collection of Big Data
Intelligent Things – Robots, Drones and Autonomous Vehicles
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7. The Strategic Trends of 2017
Much of this is big guy toys but economies of scale and cloud applications will change this:
Digital Twins – Devices and people working in harmony with each other
Block Chain – Individuals can work on an individual transaction in concert with each other
providing their slice of the pie.
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8. The Strategic Trends of 2017
Conversational Systems - Systems using AI will not
simply respond to user input, but will adapt to
users/customers to the point where they will actually hear
and anticipate what a user/customer says and wants.
Mesh App and Service Architecture - The blending of
digital architecture, cloud and server-less computing, and
micro-services meld to serve the needs of a business
enterprise.
Digital Technology Platforms - Business will be built
upon the concept of which digital solutions will be used
to deliver the necessary products.
Adaptive Security Architecture - Blending digital meshes
and digital technology platforms will allow systems to
“adapt” to any infrastructure attacks that occur.
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Much of this is big guy toys but economies of scale and cloud applications will change this:
9. The Survival Techniques
The fear – 65% of Americans expect to be replaced in 50 years – but 80% say it will be somebody
else’s job.
The Danger Five
1. Middle Management
2. Commodity Sales Force
3. Report Writes, Journalists and Announcers
4. Accountants and Bookkeepers
5. Doctors
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10. The Survival Techiques
The fear – 65% of Americans expect to be replaced in 50 years – but 80% say it will be somebody
else’s job.
The Danger Five
1. Middle Management
2. Commodity Sales Force
3. Report Writes, Journalists and Announcers
4. Accountants and Bookkeepers
5. Doctors
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11. Security
Cyber Security – Likely most critical issue facing accountants in the future:
The Risks:
Data
Reputation - TRUST
Client Channels – Loss of Access to Data
Practice Environment – HVAC, Power Systems, Etc.
PRACTICE ALERT – Security will require agility, vigilance, and resilience. Plan for the WORST
and have a PLAN B.
Social Engineering
Ransom Ware
Alternate Device Storage, i.e. a printer or other device on system
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12. Security
The BYOD (Bring Your Own Device)
The Phone
The Tablet
The Home Computer
Cloud Based Malware – The new Battle Front
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13. The Changing of the Guard
Millennials aka Generation Y
1/3 of working force are those born from 1980 – 2000 but will comprise 50% within 3-5 years.
What does this mean?
A new generation of business owners is emerging
The issue – Almost a blind faith in Technology
54% would rather text than talk
Create twice a much online content as others
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14. The Cloud
Becoming More and More Important
Synched devices
Physical infrastructure going the way of the dinosaur….
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15. Artificial Intelligence
Artificial intelligence is coming to Accounting
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journalofaccountancy.com/news/2017/oct/a
ccountants-role-in-managing-artificial-
intelligence-disruption-201717688.html
16. Wired World
More information than we can digest
How to sift through it all?
Accountants: be more strategic
A. How to use data
B. Use Big Data
C. Combine financial and non-financial metrics
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19. Wired World
The rise of the “Social” Robot
Interaction with humans on a behavioral level
Integrated with our operations
Wearables
Employees using to work from anywhere in the
office
Smart Glasses
Devices attached to other parts of the body, i.e.
arm or leg for hands free communication
Headsets
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20. Automated IRS
Moving to the Web - The IRS is attempting to automate more of its processes and procedures,
and concurrently reducing the number of taxpayer assistance services in person and over the
phone. … Accountants and taxpayers should expect less (live assistors) help, …
The IRS …security and authentication, involving email addresses, text-enabled phones, and
intrusions into credit files (for things like credit card numbers, loan numbers, etc.)
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irs.gov/help/tools
Transcripts
Filing
Refunds and Payments
Credits and Deductions
Calculators
Taxpayer Assistance
For Businesses
For Tax Professionals
21. Virtual Offices, Staff, Clients & Money
Where in the world is Waldo (your client, your staff, your office)
Virtual
Clients
Production resources
Employees
Meetings
Work Papers / files
Currency
Firms may have no brick and mortar
Younger clients may want convenience versus physical contact
5-10% of start up firms
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22. Digital Currency
Understanding Digital Technologies
Use of digital currencies can simplify transactional exchange
Can allow both sides of a transaction to “share” data
Create Traceable Audit Trails
May allow automation of audit process.
Seamlessly integrate
Order
Delivery
Confirmations
Invoice
Transfer of Funds
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23. Social Media
Social Media Because:
Important Influence on the Under 40
crowd
Social interaction
Social Listening
Provide platform to show professional
competency
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24. Technology Changes
Be wary of change for the sake of change – But issues to consider:
Evolving integration of social technology into business systems
Security concerns
Information which is more consumer friendly
Increasingly tech savvy consumers
Accelerating velocity of information
The simultaneous fear and embracing of new technologies
The discontinuance of old, comfortable technology with a new one.
Technology changes how our brains work.
Pairing hand-eye coordination with rapid decision-making skills
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25. 10 Concepts Shaping Accounting
1. Greater Transparency & Trust
2. Authenticity
3. Out-tasking & Outsourcing
4. Contracting vs. employing
5. Hiring is more difficult
6. On-boarding critical
7. Career paths are no longer straight lines
8. Knowledge transfer – BB to Millennials
9. Demographic Shifts
10. Virtual work is commonplace
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Technology Changes
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26. How Will Firms Capitalize on Changing Technology
Understand what the firm has.
Step 1 – List all of the technology tools
currently being used (Actually being
used not what the firm has.
Step 2 – What is important about all the
stuff we have and what is its purpose.
Step 3 – If the stuff is too old can it be
updated or should it be replaced.
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27. Additional Information
“Robots Are Coming to the Accounting
Industry”
www.businessinsider.com/artificial-
intelligence-is-an-opportunity-for-
accounting-2017-3
“How Does Blockchain Work?”
https://medium.com/@micheledaliessi/how-
does-theblockchain-work-98c8cd01d2ae
“How AI is Reshaping the Accounting
Industry”
www.forbes.com/sites/forbestechcouncil/201
7/07/20/how-ai-is-reshaping-the-
accountingindustry/#7e55e4ae37f3
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