This maturity posture reflects some of the other findings in the report, which reveal tax departments looking to upgrade technology, but not necessarily having the infrastructure to implement tech properly. Just half of respondent departments, for instance, reported having a dedicated person in charge of technology strategy. More than 80% said their departments were either somewhat competent or not competent with regards to technology. And only 57% said their department provides technology training to tax professionals. And yet, there is reason for hopefulness, those in corporate tax say, as they see a future with greater artificial intelligence (AI) adoption, increasing technology budgets and personnel, and overall climbing technology maturity throughout the department.
The companies must report their findings from those tests to the federal government — though the findings do not have to be made public. President Biden signed a far-reaching executive order on artificial intelligence on Monday, requiring that companies report to the federal government about the risks that their systems could aid countries or terrorists to make weapons of mass destruction. The order accounting for technology companies also seeks to lessen the dangers of “deep fakes” that could swing elections or swindle consumers. Shalene Jacobson was promoted to CFO at Guaranty Bancshares, Inc., the parent company of Guaranty Bank & Trust, N.A. Clifton A. ‘Cappy’ Payne, senior executive vice president and CFO of the company, plans to retire on March 31, 2024, after 40 years, and 35 years as the principal accounting officer.
Biden Issues Executive Order to Create A.I. Safeguards
This involves setting expectations and leveraging solutions that drive automation, enhance efficiencies, and improve collaboration among both staff and clients. This enables staff to work more efficiently and provides them with the ability to achieve the work/life balance they desire. Today, many private entities are in the midst of implementation and are, ideally, looking to public companies for best practices and lessons learned.
When it comes to data analysis, leaders should invest in advanced tools and training for their accounting teams. This will empower them to transition from data entry to data analysis, and advisory offering valuable insights that can influence strategic decisions and growth opportunities. The transition from data entry to data analysis has repositioned accountants as strategic business advisors. Utilizing data, accountants can offer their clients a thorough comprehension of their financial health, industry patterns and potential expansion opportunities. In terms of accounting in the cloud, business leaders can look to integrate cloud-based accounting software within their operations. By doing so, they can make financial data accessible at all times, from any location, fostering increased efficiency and collaboration across time zones and anywhere they might be in the world.
Opportunities in 2023: Capitalizing on data
Still, some emerging trends within the accounting field have gained such momentum in recent years that continued acceleration in 2023 seems all but certain. As accounting leaders look to the year ahead, here are three predictions about the seismic shifts reshaping the finance function — and why leaders would be wise to lean into these trends sooner rather than later. Increase profits, strengthen existing client relationships, and attract new clients with our trusted payroll solutions that accommodate in-house, outsourced, or hybrid models. A growing number of firms are taking a closer look at outsourcing (both onshore and offshore) as another way to help ease staffing constraints.
- The order also requires that cloud service providers report foreign customers to the federal government.
- Accounting firms that offer hands-on training opportunities may gain a competitive edge as well.
- While implementing the latest accounting technology is not the only way to draw in new hires, it provides a foundation for what prospective employees want—more high-value work, flexible working arrangements, increased productivity, and support to grow.
- The majority of respondents categorize their department’s technology maturity as either chaotic or reactive, designations that mean those departments may be using some databases or third-party software but are not fully integrating their technology within their workflow.
- Having a single model that results in more capitalized costs is incredibly unpopular with many that want a dual model.
- Many would prefer to expense everything if the software is being sold, whether it’s sold on-prem or as SaaS, while software costs are capitalized for those that are truly for internal use only—like ERP systems.
- More than 80% said their departments were either somewhat competent or not competent with regards to technology.
In the old days, it wasn’t uncommon for partners to get the middle of the night calls from their panicked clients. Accountants can now expect to be “on call” to their clients almost constantly, and it’s not as simple as having business hours — the competition is answering their calls, so you need to too. Technology entities must be aware of SEC https://www.bookstime.com/ requirements as non-GAAP financial measures and KPIs are leading causes of SEC comments. This is the web version of CFO Daily, a newsletter on the trends and individuals shaping corporate finance. —JPMorgan Chase CEO Jamie Dimon said speaking on a panel at the Future Investment Initiative summit in Riyadh, Saudi Arabia, Bloomberg reported.
Outdated accounting technology
As these models evolve, so do the accounting and financial reporting challenges that health tech accounting teams face. Deloitte’s 2023 Health Tech Industry Accounting Guide contains the insights needed to navigate these issues, providing perspectives that are aligned with the unique accounting challenges that span the wide spectrum of businesses in the health tech marketplace. Sandie is a senior consultation partner in the Professional Practice Group of Deloitte & Touche LLP’s National Office. She provides consultations to clients and audit practitioners on complex financial accounting and reporting issues, primarily in areas related to revenue recognition, business combinations, long-lived assets, stock-based compensation, and other employee benefits. She also serves as the lead partner for the National Office revenue recognition team.
Certain services may not be available to attest clients under the rules and regulations of public accounting. The 2023 edition of Deloitte’s Life Sciences Industry Accounting Guide is here to help bring clarity. As an accounting manual for pharmaceutical companies and others in the life sciences industry, professionals can use the guide throughout the year to address established accounting or reporting issues like these and others.
Here are three best practices that tech companies should be aware of in managing their accounting. With cybersecurity, business leaders have a critical role to play in ensuring that their organizations have robust security protocols in place. They need to invest in cybersecurity measures and provide education to their teams to counteract the ever-increasing threat of cyberattacks. Progress in data analysis tools has enabled accountants to shift from crunching numbers to mining data.
August 23General Motors will cut 940 jobs after closing an Arizona-based information technology center in October, according to the Detroit Free Press, after Stacy Lynett, GM’s vice president of information and digital technology, said the move would “optimize our innovation center footprint” while increasing efficiency. August 24T-Mobile announced it would cut about 7% of its staff—an estimated 5,000 positions—after CEO Mike Sievert told employees the cost of attracting new customers is “materially more expensive than it was a few quarters ago,” according to a filing with the SEC. September 28Athleticwear giant Lululemon announced a round of cuts in an internal memo obtained by Insider, stemming from the athletic apparel company’s decision to stop selling its Studio Mirror, three years after it purchased Mirror in a $500 million deal (Forbes has reached out to Lululemon for confirmation). The order centers on safety and security mandates, but it also contains provisions to encourage the development of A.I. In the United States, including attracting foreign talent to American companies and laboratories.
The technology industry continues to rapidly evolve and has experienced convergence with other types of businesses, creating subsectors like fintech, health tech, and auto tech to name a few. Significant growth along with the continuous innovation by technology entities introduces complex issues for accounting and financial reporting professionals. These teams must exercise significant judgment in applying existing rules to matters such as revenue recognition, contract costs, software-related costs, stock-based compensation, financial instruments, IPO, disclosures of non-GAAP financial measures and metrics, and more. With interpretive guidance, illustrative examples, and recent standard-setting developments, the inaugural edition of Deloitte’s Technology Industry Accounting Guide is designed to help accounting and financial reporting teams in the technology industry navigate these complex challenges, among others. This guide is the perfect companion for technology industry accounting professionals encountering new industry trends and can be applied in any variety of organizational categories, from enterprise software and software-as-a-service (SaaS) providers to hardware and semiconductor manufacturers, and everything in between.