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Accounting

Real-time customer collaboration is a new software must

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Collaborative software is growing in popularity for both accountants and clients. Groupware, as it’s also known, helps people work together on a common task to achieve their goals regardless of their physical location. It’s improving teamwork and productivity in an interconnected world when we now have so many ways to communicate. 

A poll I conducted on LinkedIn showed that 44% of people prefer using a collaborative portal within their cloud accounting and finance software to communicate with clients. I also asked how they prefer to communicate with clients and only 33% want in-person meetings. That means accountants are more open than ever before to different communication channels. Couple this with clients who want their accountants to be more technologically savvy, and you can see the tides are changing. 

At its core, collaborative software integrates various communication and organizational functions — such as messaging, file sharing and task management — into a single platform. This unification of tools helps streamline workflows and fosters more effective collaboration between employees, partners and clients. Some of the collaborative tools we’re seeing in software today include:

  • Communication tools. These include messaging platforms and email systems that facilitate communication among team members.
  • Coordination tools. These help with scheduling, task management and project management, ensuring the team is aligned and working toward the same goal.
  • Collaboration tools. These include document sharing and editing platforms, whiteboards and other tools that enable a team to work together on a shared task. 

Real-time communications like chat and discussion boards make it easy for teams to stay connected. 

Teamwork and cooperation concept - top view of six people - men and women - drawing or writing on a large white blank sheet of paper.

Gaj Rudolf/Gajus – stock.adobe.com

“When your financial software connects to your customers, they can use it to ask questions, send documents and provide feedback in real-time, greatly reducing the time required to address issues,” said George Mahowald, CAS accounting practice leader at Bill360. “This helps you build lasting trust and improve the customer experience.”

Bill360 is an AR automation platform with collaboration at its core. They are just one sample of the growing collaboration tools firms are using. Others include:

  • Google Sheets can be used for real-time editing, comments, version history and more.
  • Slack is a work management and productivity tool that aims to be the central platform through which teams communicate. It also helps bring every piece of a project together from start to finish. 
  • Client portals like ShareFile bring automation, e-signing and document sharing together with dedicated spaces for collaboration.
  • Many accounting software solutions like QuickBooks Online, Xero and Zoho Books, to name a few, contain collaboration features. It’s so integral to FreshBooks that they trademarked the phrase “collaborative accounting.”
  • Practice management tools like Keeper bring communications, file reviews, tasks and reporting all in one place.

With collaboration software, clients become active participants in the workflow. Truly, accountants and their clients can work as a team, enhancing productivity for everyone. 

Why you want to use collaborative software

Accountants are relying more on collaborative software so teams work together efficiently and effectively. When everyone has 24/7 access to the same data, team performance and business success will be improved. Here are some key benefits firms see when using collaborative software:

  1. Enhanced communication. Real-time communication makes it easier for team members to exchange ideas, ask questions and provide updates. It eliminates long email chains and is a central hub for conversation both internally and externally. “It’s what really lets you meet your customers right where and when they need you most,” said Mahowald.
  2. Improved efficiency. Teams can save time by having all the necessary tools and information in one place. By allowing multiple team members to access and edit the same document simultaneously, collaborative software eliminates the need for back-and-forth email exchanges. This increases efficiency and improves version control, ensuring everyone has access to the most up-to-date information.
  3. Remote work capabilities. Collaborative software is critical to maintaining team cohesion and productivity. Employees can work from any location, with access to the same files and resources, ensuring seamless collaboration across different time zones or regions. It allows remote teams to collaborate as if they were in the same room.
  4. Streamlined project management. Collaborative software often includes project management capabilities, allowing team leaders to assign tasks, set deadlines and track progress. This helps ensure that everyone is on the same page, reducing the risk of miscommunication and missed deadlines.
  5. Stronger team relationships. Collaboration helps build relationships and trust among team members, contributing to a supportive work atmosphere where everyone feels valued and motivated to contribute their best.
  6. Knowledge sharing and innovation. Collaborative software provides a centralized space for team members to exchange ideas, offer feedback and collaborate on solutions. This enhances knowledge sharing within the organization, encourages innovation and ensures that the best ideas rise to the top.

Collaborative teams can make more informed decisions by pooling their collective knowledge and focusing on customer needs. 

Collaborative software leads to a better CX

Collaborative software significantly enhances the client experience by improving communication, increasing transparency and fostering a more streamlined working relationship between clients and businesses. 

Improved communication is something clients will experience right away. Clients can interact with your firm quickly and efficiently. But they will also get visibility into ongoing projects. They can track their work’s progress, see updates in real-time and provide feedback directly through the platform. This transparency builds trust and strengthens client relationships.

“When you can actively respond and act on customer feedback, you are building trust and improving the customer experience,” Mahowald said.

In addition, clients appreciate: 
1. Faster delivery times. Decision-making is sped up and bottlenecks are reduced. Clients can approve work, provide feedback or request changes instantly. Miscommunication can be quickly cleared up and multiple team members can work on the same project at the same time. 
2. Tailored advisory solutions. By allowing clients to be part of the collaboration process, you can better understand their needs and deliver solutions tailored to their preferences. You know you need to provide more advisory services and this collaboration makes it easier to identify them. Whether it’s adjusting a project in real-time or gathering feedback during different stages, clients have more control over the outcome.
3. Enhanced problem solving. When issues arise, both teams and clients can address them quickly by working together on the same platform. Immediate access to all relevant project data allows for swift resolution of concerns and improved service delivery. “With an audit trail, you can remember and prove what was agreed on,” Mahowald said, “In the rare case it’s needed, you can use it for dispute resolution, too.”

Collaborative software aims to simplify

As with all software, anything with a collaborative component must align with the specific needs of your firm and your team dynamics. It should enhance productivity without adding complexity.

Collaborative software is essential for new firms looking to boost productivity, streamline communication and enhance both internal operations and client relationships. Its versatility and adaptability make it a powerful tool for improving project outcomes, fostering innovation and driving long-term success for you and your clients alike.

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Accounting

IAASB tweaks standards on working with outside experts

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The International Auditing and Assurance Standards Board is proposing to tailor some of its standards to align with recent additions to the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants when it comes to using the work of an external expert.

The proposed narrow-scope amendments involve minor changes to several IAASB standards:

  • ISA 620, Using the Work of an Auditor’s Expert;
  • ISRE 2400 (Revised), Engagements to Review Historical Financial Statements;
  • ISAE 3000 (Revised), Assurance Engagements Other than Audits or Reviews of Historical Financial Information;
  • ISRS 4400 (Revised), Agreed-upon Procedures Engagements.

The IAASB is asking for comments via a digital response template that can be found on the IAASB website by July 24, 2025.

In December 2023, the IESBA approved an exposure draft for proposed revisions to the IESBA’s Code of Ethics related to using the work of an external expert. The proposals included three new sections to the Code of Ethics, including provisions for professional accountants in public practice; professional accountants in business and sustainability assurance practitioners. The IESBA approved the provisions on using the work of an external expert at its December 2024 meeting, establishing an ethical framework to guide accountants and sustainability assurance practitioners in evaluating whether an external expert has the necessary competence, capabilities and objectivity to use their work, as well as provisions on applying the Ethics Code’s conceptual framework when using the work of an outside expert.  

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Accounting

Tariffs will hit low-income Americans harder than richest, report says

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President Donald Trump’s tariffs would effectively cause a tax increase for low-income families that is more than three times higher than what wealthier Americans would pay, according to an analysis from the Institute on Taxation and Economic Policy.

The report from the progressive think tank outlined the outcomes for Americans of all backgrounds if the tariffs currently in effect remain in place next year. Those making $28,600 or less would have to spend 6.2% more of their income due to higher prices, while the richest Americans with income of at least $914,900 are expected to spend 1.7% more. Middle-income families making between $55,100 and $94,100 would pay 5% more of their earnings. 

Trump has imposed the steepest U.S. duties in more than a century, including a 145% tariff on many products from China, a 25% rate on most imports from Canada and Mexico, duties on some sectors such as steel and aluminum and a baseline 10% tariff on the rest of the country’s trading partners. He suspended higher, customized tariffs on most countries for 90 days.

Economists have warned that costs from tariff increases would ultimately be passed on to U.S. consumers. And while prices will rise for everyone, lower-income families are expected to lose a larger portion of their budgets because they tend to spend more of their earnings on goods, including food and other necessities, compared to wealthier individuals.

Food prices could rise by 2.6% in the short run due to tariffs, according to an estimate from the Yale Budget Lab. Among all goods impacted, consumers are expected to face the steepest price hikes for clothing at 64%, the report showed. 

The Yale Budget Lab projected that the tariffs would result in a loss of $4,700 a year on average for American households.

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Accounting

At Schellman, AI reshapes a firm’s staffing needs

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Artificial intelligence is just getting started in the accounting world, but it is already helping firms like technology specialist Schellman do more things with fewer people, allowing the firm to scale back hiring and reduce headcount in certain areas through natural attrition. 

Schellman CEO Avani Desai said there have definitely been some shifts in headcount at the Top 100 Firm, though she stressed it was nothing dramatic, as it mostly reflects natural attrition combined with being more selective with hiring. She said the firm has already made an internal decision to not reduce headcount in force, as that just indicates they didn’t hire properly the first time. 

“It hasn’t been about reducing roles but evolving how we do work, so there wasn’t one specific date where we ‘started’ the reduction. It’s been more case by case. We’ve held back on refilling certain roles when we saw opportunities to streamline, especially with the use of new technologies like AI,” she said. 

One area where the firm has found such opportunities has been in the testing of certain cybersecurity controls, particularly within the SOC framework. The firm examined all the controls it tests on the service side and asked which ones require human judgment or deep expertise. The answer was a lot of them. But for the ones that don’t, AI algorithms have been able to significantly lighten the load. 

“[If] we don’t refill a role, it’s because the need actually has changed, or the process has improved so significantly [that] the workload is lighter or shared across the smarter system. So that’s what’s happening,” said Desai. 

Outside of client services like SOC control testing and reporting, the firm has found efficiencies in administrative functions as well as certain internal operational processes. On the latter point, Desai noted that Schellman’s engineers, including the chief information officer, have been using AI to help develop code, which means they’re not relying as much on outside expertise on the internal service delivery side of things. There are still people in the development process, but their roles are changing: They’re writing less code, and doing more reviewing of code before it gets pushed into production, saving time and creating efficiencies. 

“The best way for me to say this is, to us, this has been intentional. We paused hiring in a few areas where we saw overlaps, where technology was really working,” said Desai.

However, even in an age awash with AI, Schellman acknowledges there are certain jobs that need a human, at least for now. For example, the firm does assessments for the FedRAMP program, which is needed for cloud service providers to contract with certain government agencies. These assessments, even in the most stable of times, can be long and complex engagements, to say nothing of the less predictable nature of the current government. As such, it does not make as much sense to reduce human staff in this area. 

“The way it is right now for us to do FedRAMP engagements, it’s a very manual process. There’s a lot of back and forth between us and a third party, the government, and we don’t see a lot of overall application or technology help… We’re in the federal space and you can imagine, [with] what’s going on right now, there’s a big changing market condition for clients and their pricing pressure,” said Desai. 

As Schellman reduces staff levels in some places, it is increasing them in others. Desai said the firm is actively hiring in certain areas. In particular, it’s adding staff in technical cybersecurity (e.g., penetration testers), the aforementioned FedRAMP engagements, AI assessment (in line with recently becoming an ISO 42001 certification body) and in some client-facing roles like marketing and sales. 

“So, to me, this isn’t about doing more with less … It’s about doing more of the right things with the right people,” said Desai. 

While these moves have resulted in savings, she said that was never really the point, so whatever the firm has saved from staffing efficiencies it has reinvested in its tech stack to build its service line further. When asked for an example, she said the firm would like to focus more on penetration testing by building a SaaS tool for it. While Schellman has a proof of concept developed, she noted it would take a lot of money and time to deploy a full solution — both of which the firm now has more of because of its efficiency moves. 

“What is the ‘why’ behind these decisions? The ‘why’ for us isn’t what I think you traditionally see, which is ‘We need to get profitability high. We need to have less people do more things.’ That’s not what it is like,” said Desai. “I want to be able to focus on quality. And the only way I think I can focus on quality is if my people are not focusing on things that don’t matter … I feel like I’m in a much better place because the smart people that I’ve hired are working on the riskiest and most complicated things.”

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