5 minute read
Chair Column
Transforming Our Profession - Together
BY SHARON S. LASSAR, PHD, CPA (FLORIDA)
Over the course of this past year, we have experienced firsthand the resiliency not only of our profession but also much of the U.S. economy. Many businesses struggled, but others transformed almost overnight. Restaurants shifted to delivery and pick-up services. Retailers refined ship-to-store and curbside pickup. Educators and other service providers moved online. The pandemic forced the adoption of technology solutions and started a flywheel that will continue to accelerate.
We’ve seen our organizational cultures evolve as well. Before COVID-19, many workers resisted change, but when faced with no alternative, they adopted technology-enabled solutions and are now ready for more. The pandemic also made us think about safety and how solutions like contact tracing can compromise privacy.
TRUSTED ADVISORS – NOW MORE THAN EVER
Now, as we envision a post-COVID world, CPAs are perfectly positioned to help their companies and clients plan their next steps in the digital transformation taking shape. We know this guidance is badly needed to keep our information and money safe from cyber criminals, which unfortunately was demonstrated last spring when the U.S. government distributed money to assist individuals who lost their employment. The result has been billions of dollars lost to fraudulent unemployment insurance claims (related story on page 12). My own identity was stolen – twice.
Some say technology will result in us moving to a never trust, always verify system. I prefer to think of technology as a means to automate trust. It’s critical for systems to utilize multi-factor authentication so the public has confidence in its transactions in a digital world. Over the coming year, we will see a continuing convergence of technology tools to help us address problems and make better decisions. As we automate processes, we’ll have access to an unprecedented amount of data allowing companies to connect the physical world to the virtual world through the Internet of Things. Our ability to extract and analyze big data is improving. We are building artificial intelligence (AI) systems, and we are programming machines to learn. The fourth industrial revolution is well underway.
THE HUMAN SIDE OF THE DIGITAL TRANSFORMATION
Although we have become accustomed to conducting both our personal and business interactions in a digital environment, most of us long for the human interaction we experienced before the pandemic. As we imagine what a post-COVID world looks like, we are not likely to give up the convenience of working from home, meeting remotely, and shopping online. How will our new digital world converge with the human experience? Two aspects of the digital transformation that are related and particularly interesting to me are privacy and security. For years, employers have had the ability to scan how employees conduct their work but have generally not executed on all the possibilities. Employers generally don’t monitor internet browsing habits of their workers, for example. In a continued work from home environment, however, employers have an interest in gathering data from workers’ tools and platforms to maintain the productivity, collaboration, and performance of a distributed workforce. Will workers feel their privacy is compromised, or will they embrace suggestions generated by AI engines that read their workflow? We also have become accustomed to online retailers suggesting additional products when we add an item to our shopping carts. I appreciate being reminded to buy batteries for a product that requires them. Will I have the same reaction to suggestions if they come from a live sales associate who had tapped into my online purchase habits in order to serve me better? Maybe I came to the store because I want an independent or creative suggestion, something the online algorithm would not suggest. Perhaps I don’t want sales associates to know my online browsing history. Navigating the tradeoffs between privacy and increased productivity and customer satisfaction may be challenging. Privacy is also a concern when automating security. What data needs to be in the blockchain? Once entered, it is permanent. Food and medicine security is greatly enhanced with blockchain technology. Butchers can often tell you not only on which ranch the livestock was raised but also the individual animal that provided your cut. Supply chain security also can mean agility to respond to demand spikes. For toilet paper shortages to become an historical event, information on what drives consumer behavior needs to be linked to manufacturers to better connect demand and supply. Predictive models that use anonymous transaction data can make those connections in ways that do not compromise privacy. Do consumers trust companies to anonymize data they collect?
CPAS: LEADING THE WAY
CPAs are being called upon more than ever before to help their companies and clients with this digital transformation. It is a tall order. We are also transforming ourselves. A great resource is the COCPA Technology Users Group which typically meets on the third Tuesday of every month to discuss issues and share technology tips and tricks. Discussion topics include technology solutions for everyday problems like client portals, cloud storage, automation, practical tax and audit technology best practices, client workflow, social collaboration, outsourced IT resources, etc. COCPA member Jim Gilbert leads the group and seeks your suggestions on topics for future meetings. Please consider joining. Technology is moving so quickly, and it is becoming increasingly challenging for all of us but especially for smaller firms to keep up with the rapid change. We need to rely on one another, share experiences, and work together not only to stay ahead of digital transformation but also to learn to be leaders for our clients and companies.
A YEAR LIKE NO OTHER
This column marks my final one as your COCPA chair. What a year it has been! While I wasn’t able to connect with you in person, it still has been an honor and a privilege to serve. I have watched so many of you transform your own businesses and practices as you simultaneously helped your clients and companies do the same. So many exciting challenges are ahead for us as a profession. We have much to look forward to whether it’s the growing emphasis on Environmental, Social, and Governance (ESG) issues in financial reporting or the digital transformation that is helping us work faster and more efficiently than ever before. Even as the COVID-19 vaccines will make it possible to come together physically again, it’s clear we won’t go back to the way we did things before. Let’s continue to work together to bring our collective profession forward into this exciting new world. Email Sharon Lassar at slassar@du.edu.
