Cloud solutions provider Acumatica announced the release of its Professional Services Edition, made to help support accounting and project management tasks for consultants, engineers, architects and other professionals. 

“These industry trends and direct feedback from the Acumatica Community were the main drivers for creating the Professional Services Edition, with customers, partners and developers voting it a must-have solution,” said Jeremy Larsen, vice president of product management at Acumatica. “The professional services industry is an underserved market for technology companies, providing a significant opportunity for innovation. As the fourth-largest vertical of customers we already serve, our partners have expressed strong enthusiasm about the potential impact of this release.”

The business management solution was built to address the unique challenges faced in the professional services industry, such as inefficiencies in quote-to-project setup, industry-specific billing rate structures, and customer support management. Features includes project accounting, compliance management, and AI-driven workflow automation. 

Specifically, users have access to Acumatica Financial Management, which has standard financial processes (GL/AP/AR) and reports, with additional options for multi-company, multicurrency, intercompany accounting, fixed assets, and cash management. They can also access accounts payable cost transactions related to progress billing lines from the pro forma side panel for timely vendor payments and increased billing accuracy, and tie revenue recognition to project milestones or deliverables.

It can also progress billing by percentage of completion or by quantity. Users can also manage AP workflows, from entering an invoice through approval routing and checks. Meanwhile, customer billing capacities, driven by real-time project costing, provide up-to-date labor, material, equipment, and other costs, letting users identify problem areas in current jobs and improve future project estimates.

The Professional Services Edition also boasts the ability to capture time and expense from any device, entries for which then flow to project accounting for costs and expenses related to projects or specific project tasks. Billable activities can also be marked up depending on the project, task, employee, or activity performed. The solution also has integrated payment capacities that automates accounts receivable processing to reduce back-office workloads and get paid faster.

Other payment-related features include click-to-pay links, and a self-service portal which streamlines communication with push notifications, giving customers access to support cases and payment options. The software can also specify tax calculations directly in the project and automatically retrieve and calculate all invoices, purchase orders, subcontracts, and expenses.

Project management capacities include the ability to access a complete view of project details, letting users manage and track all activities, issues, and changes, including daily field reports, actual costs, and cost projections from one central area. They can also ensure resource availability to allocate staff, equipment, and technology by team, department, and timeframe, letting users assign tasks and workflows to manage project resources and tie the costs to the project budget. Field reporting and mobility features help ensure everyone has the same project data from the field or anywhere they work and remotely enter time and expense details. There are also project productivity and insights features which use side panels for a quick and comprehensive view of key project data without navigating out of the current window. 

The new edition also features embedded customer relationship management solutions that help firms to keep detailed records of client interactions, proposals, manage contracts, payments, renewals, and compliance documents. They can also control cost overruns by automating project commitments and change order processes, meaning users can manage back charges or reduction in vendor commitments through the entry of a negative change order, as well as  streamline change orders for multiple projects with unit rate changes, custom retainage, and cost-only change requests. 

“Professional services firms face intense competition and require advanced business management technology to enhance operations and drive future growth,” said Jason Leveson, principal at Revive ERP, an Acumatica partner. “Acumatica’s Professional Services Edition is a smart step in providing these firms with the tools they need to stay agile, scale effectively and maintain a competitive edge in an ever-evolving market.”

The Professional Services Edition joins Acumatica’s existing suite, which includes the Construction Edition, Manufacturing Edition, Distribution Edition, Retail Edition and General Business Edition.

Tristan Wheelock/Bloomberg

Scammers are using fake charities in the wake of Hurricanes Milton and Helene to harvest personal and financial data from unsuspecting taxpayers.

“You should never feel pressured by solicitors to immediately give to a charity,” said Commissioner Danny Werfel in a statement from the IRS, which issued the warning. “Verify if they’re authentic first.”

Tips to verify charities and spot fake ones:

• Scammers frequently use names that sound like well-known charities to confuse people. Fake charity promoters may also use bogus emails or fake websites or alter or “spoof” their caller ID to make themselves look like a real charity. Ask the fundraiser for the charity’s name, website and mailing address. Check the Tax-Exempt Organization Search tool on IRS.gov to help find or verify legitimate charities.
• Never work with charities that ask for donations by giving numbers from a gift card or wiring money. It’s safest to pay by credit card or check, and only after verifying the charity is real.
• Scammers want both money and personal information. Never disclose Social Security numbers, credit card numbers or personal identification numbers
• Scammers often pressure people into making an immediate payment. In contrast, legitimate charities are happy to get a donation at any time.

The IRS has other background on its Charity and Disaster Fraud page.

In today’s rapidly evolving business landscape, the expectations placed on auditors and advisors are shifting significantly. 

As finance functions within organizations embrace technological advancements, there is mounting pressure on public accounting firms to match or exceed the pace of change and sophistication of their clients to perform their expected role.

Recent industry research indicates clients are noticing this growing gap in capabilities. Businesses are actively seeking accounting firms offering a more progressive approach, with 55% wanting an audit that can scale and support their growth goals and expectations. Further, 67% feel audits can provide valuable insights in these areas, but feel the current process is hindering this (“What modern businesses want from their audits”). 

Many accounting firms are excited by high-margin and high-growth advisory services. There is a huge amount of opportunity in this area, including services such as ESG, digital transformation, and AI strategy. 

But how can a firm pitch a credible offering to a company in these areas if their core services such as audit and tax are still highly manual? Discussing cyber risks and data security feels disingenuous while their teams drown in spreadsheets as their desktop software synchronizes.

Public accounting firms need to eat their own dog food, digitally transforming their own business to provide a credible and broad suite of valuable compliance and advisory services to clients. These war stories and firsthand experiences are what bring to life the page in the sales brochure.

The Oakland Athletics show the way

Over the past decade, technology has made significant advances. Just look at the NASDAQ’s most valuable companies by market capitalization: Apple, Microsoft, Alphabet, Amazon, and NVIDIA — all companies built on the value of technology and data.

Yet, in the auditing profession many firms remain cautious over new technology. Some recite that audit standards have not been updated to endorse such technologies and until this happens, they won’t change: “The audit standards are still written assuming the auditor cannot review all transactions and must sample, so why would I use data analytics to analyze all the transactions?”

This mindset has led many to stick to traditional methods, feeling unable to change despite the clear benefits that modern technology can offer.

This might be audit’s Moneyball moment.

The story of the 2002 Oakland Athletics is well known and has been told more broadly through the hit film “Moneyball,” starring Brad Pitt. 

The rules of baseball do not significantly change from year to year. There was no major change ahead of the 2002 season. Yet one team decided to take a new approach to the game.

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Rather than leaning on the traditional scouting approaches and views of those who had been in baseball all their lives, Billy Beane decided to embrace statistical analysis. As the general manager, he brought onto his team players undervalued by these traditional scouting methods. He adopted a data-driven approach to team-building and playing the game of baseball.

So, the rules of the game hadn’t changed, but one team decided to play the game differently within those existing rules. The Oakland Athletics chose to use data over the traditional approach. They set new records and stood shoulder-to-shoulder with teams that had far greater resources. 

Now every baseball team has embraced what Billy Beane started, and we have seen the same in other sports like the football. “Analytics” was originally scoffed at by commentators and former players. Now it is an integral part of everything from draft selection to in-game strategy.

The audit standards are akin to the rules of baseball. The rules do not need to change for a better way to play the game to be possible. The standards do not need to change for there to be a better way of auditing.

Digital audits are a way of leveraging data, data analytics, and modern technologies to deliver more efficient and valuable audits, while safely complying with the existing audit standards.

The role of governing bodies: Ensuring innovation and progress

Professional bodies, regulators, and standard-setters play a crucial role in helping firms navigate change. Innovation within firms brings greater creativity and variation to the way traditional services like audit are being performed. While evolving the rulebook is required, the process to change audit standards is necessarily deliberate, considered, and therefore slow. 

So, governing bodies must stay close to firms and the solution providers they are working with to drive innovation. Understanding new techniques as they are being conceived and trialed, not after they have matured and then witnessed in an audit inspection, could shorten this feedback loop by multiple years.

This level of transparency and collaboration requires trust. Professional bodies who see demand from their members for support as an opportunity to step in as a direct solution provider should be mindful of the impact. This changes relationships with solution providers and introduces conflicts to their role of advancing the profession.

In the U.K., there have been several positive initiatives aimed at fostering the collaborative advancement of the audit profession. Following comprehensive government-commissioned reports such as the Kingman and Brydon Reviews, UK audit firms have been redefining their operations and what an audit represents. 

The Financial Reporting Council, the U.K.’s audit regulator, has launched sandbox and other experimentation initiatives to support firms exploring more innovative auditing techniques. The professional body, the Institute of Chartered Accountants of England and Wales, has also embedded modern commercially available auditing technology directly within their accountancy exams to teach students digital auditing skills.

The U.S. could learn a lot from experiences on the other side of the Atlantic … .

The changing landscape of solution providers

For many years, public accounting firms have faced limited audit solution choice. 

This lack of competition has caused the market to circle the drain. Accounting firms have felt trapped by audit methodologies written generations ago, housed in desktop software which survived the millennium bug. This has then caused a chronic underinvestment in the market by the incumbent providers.

But the rise of cloud computing is driving a movement towards smaller, more agile providers, often with Big Four experience. They have developed enterprise-ready platforms leveraging the infrastructure and security of Microsoft Azure and other cloud providers. This means David can take on Goliath — but this time with more powerful capabilities.

The competition brought by more agile solution providers benefits CPA firms by:

1. Offering more choice and new ideas;
2. Providing more implementation support and guidance; and,
3. Pressuring incumbents to modernize their offerings.

These solution providers are still evolving. Some come heavily backed by venture capital and private equity. Others have been successful in organically growing their business, as large firms early-adopted their solution. While the difference may seem subtle, the question remains whether in the long term these new vendors will take on, or be acquired by, the larger incumbent vendors.
This may ultimately come down to product strategy. Those offering narrow point-solutions may more naturally become target acquisitions for the large vendors with holes in their offerings. Or as territory defense. Those building rival suites, or committing to progressive partnerships to create alternative suites will more likely go long and create a healthier competitive landscape into the future.

Stop talking about the future of audit

There is a generational change in motion within the audit profession. Almost every CPA firm will review, and likely change, their audit technology in the next three years. 

They will ditch the desktop. But will they simply crawl to the cloud, doing the same work in a different place?

Or will they deploy digital, embracing data and automation to skip a step and make a more progressive change?

Firms that go digital will achieve greater efficiencies through automation. But more important, they will strategically position themselves to more easily embrace future technology advancements — embedding the skillsets and data disciplines required to capitalize on artificial intelligence and all the new innovations we are yet to experience.

And it is worth considering given the severe talent challenges — firms that are embracing technology are more attractive employers for those now looking to start and continue a career in accounting.

Traditional British pubs have a sign behind the bar stating the beer will be free tomorrow. But tomorrow never comes.

It’s time to stop listening to the theoretical presentations on the future of audit. The technology is here. More innovative innovation partners are here. CPA firms are implementing a digital audit approach and being successful. 

The relevance of the audit service to the needs of modern business may be judged in future years on the strategic decisions that accounting firm leaders make over the coming years.