Ten Technology Breakthroughs That Will Change Your Life: Accounting Firms Will Soon Use These...

Management Summit 2006

The following 10 technological advances will change the lives of people who run and work for accounting firms, according to technology guru Roman Kepczyk, president of Phoenix-based InfoTech Partners North America (www.itpna.com). His comments came at the recent Management

* Maximizing monitors. Firms increasingly will use dual and triple monitors on their desktops. They'll also use more dual monitors in the field. Look for oversize and flex displays to gain popularity. Kepczyk recommends standardizing on dual monitors and 1 GB RAM for all new computers. He also suggests upgrading RAM to IGB for all desktops that are two years old or younger so that they can be optimized for the next version of Microsoft Office, which is due for release later this year. Expect to see more extra-wide or third screens to optimize viewing.

* Handheld communicators. Look for more ultraslim cell phones and PDA hybrids, such as the Palm Treo 70Ow, which multitasks as a cell phone, allows access to e-mail and the Web, plays music and videos, uses a Windows platform, and has WiFi and Bluetooth capabilities. Lots of capabilities can be packed into these small devices, so they're practical. But Kepczyk recommends waiting for later editions. He believes the screens will be easier to read in direct sunlight after kinks in the early versions are worked out. Blackberry will continue to be a player, but its current legal woes will cost the company new customers.

* Anywhere wireless. 2006 will be the year that many firms adopt broadband wireless usage to connect mobile users to the firm, Kepczyk says. Verizon and Sprint have broadband products that connect to laptops and allow for data transmissions of 100 to 700 KB per second.

* Information management. Look for a wider availability of tools that allow different applications to integrate. They'll give firms better realtime information. Practice management dashboards will provide live status reports, progress toward goals and key performance indicators. Firms increasingly will use their intranets to capture best practices among their departments.

Look For Better Integration Of Applications

* Dataflow technologies. Tax and administration functions will use integrated applications to improve work flow, much like audit document containers integrate the audit process. Tax applications will include due date monitoring, client communications and document management. They also will provide real-time status. Firms will improve administrative work flow by integrating practice management and tax applications. Also look for digital e-mailing of invoices and electronic vendor files and payments to help smooth back office functions.

* Outsourced expertise. Many firms already outsource functions such as research, banking and payroll. Look for firms to move more toward outsourcing of spam and antivirus services, as well as outsourcing of high-level IT support and security testing.

* Client service will heat up. Many firms are transitioning their write-up services to outsourced controllership services that command a higher billing rate. QuickBooks may lose its dominance if Microsoft Small Business Accounting packages its application as part of Office 12, which is slated for release later this year, or if it brings an integrated document management capability to market. The ability to have a scanned source document attached to a source entry and saved in a digital journal or vendor file will be the defining feature of the top small business accounting software, and the first company to bring such a product to market will have a definite competitive advantage.

* Transitions to less paper. More firms will use document management applications in 2006 to archive final documents. The transition is driven by concerns such as lost files, restrictions on file access and privacy laws. Expect a bevy of new document management vendors to appear on the scene, many of whom won't be experienced in the needs, applications and data integration capabilities of accounting firms.

* Information transport. security concerns will cause many firms to question the wisdom of transporting data on floppy disks, CDs or via e-mail. USB memory sticks with integrated passwords and security will become more popular because of their ability to effectively address these concerns. Also look for increased use of encrypted e-mail transfer systems and file transfer protocol (FTP) sites.

* security. Firms increasingly will invest in document access controls, disaster planning and recovery, and intrusion detection measures to improve security. Accounting firm networks must be protected from hackers and snoopers. Consider having an external security audit conducted by an independent vendor.