Survey Executive Summary

• Continuing education opportunities are the top way members want to learn about new technologies, with 63% of respondents across all age groups preferring them.
• Fewer than 50% of respondents feel current and up to date on new technologies.
• 87% of respondents say their firm views technology as an opportunity to improve their performance.
• Respondents also see technology as a way to improve strategic consulting and business analysis services. 63% of respondents say that they see these services becoming a greater share of their work within the next 3–5 years.

Technology has a growing impact on all CPAs, but perhaps the most profound impact falls on CPAs in small and medium sized firms. INCPAS wants to help make sure members in small and medium sized firms have the resources and skills they need to navigate the ever-changing landscape that is technology.

To gain a better understanding of our members’ thoughts, perceptions, and experiences with technology, we enlisted McKinley Advisors to conduct a survey in January and February 2021. Here are some of the key highlights and trends members in small to medium sized firms shared with us through that survey.

Everyone is learning!

Overall, respondents were interested in and felt comfortable learning about new technologies that impact the CPA profession, with most citing an interest in traditional learning methods to get started.

The top 5 ways respondents learn about technology:

• Continuing education opportunities (63%)
• Industry publications (57%)
• Vendors and technology partners (50%)
• Peers at work (42%)
• Peers from other firms and companies (41%)
  

Continuing education is the top across all age groups, though 78% of those age 60+ indicate it’s a preferred method.

But learning preferences vary more significantly by role.

Those in decision-making roles are more likely to learn about new technologies from traditional continuing education opportunities (66%) and publications (65%), as well as trusted vendors (58%).

Interestingly, non-decision makers (who overall tend to skew younger) are most interested in learning from their peers or colleagues (61%), followed by continuing education (52%) and publications (46%).

The strong interest in learning from peers points to the need for more CPA to CPA conversations and peer networks, as well as making sure team members who have ownership over technology are able to bring others along in the technology journey.

Few people feel that knowledgeable.

While individuals are interested and participating in learning opportunities, fewer than 50% of respondents feel current and up to date on new technologies—and age doesn’t matter all that much. Only 44% of those under 40, 34% of those 41–60, and 32% of those age 60+ say they feel up to date.

When looking at knowledge from a firm-size perspective, the bigger the firm, the more likely people feel there’s at least someone on staff who is very knowledgeable about tech. The outlier is solo practitioners; 52% indicate feeling knowledgeable, though the need to be knowledgeable is higher as a team of one.

Firm size plays a role in tech usage—but not always!

Solo practitioners (71%) and 2–3 person firms (74%) are the most likely to fall in the traditional category of tech usage. Firms with teams of 4–12 and those over 12 people are the most likely to be in the active tech usage category, experimenting with tech every one to two years. Sometimes this means there is one person or a small group of people invested in driving tech innovation in the firm.

Interestingly, solo practitioners and firms with 12+ team members are the most likely category to consider themselves innovative, each coming in at 13% of respondents.

Small teams of two to three are more likely to view tech negatively.

22% of respondents at two to three person firms feel their firm does not need to invest in new technologies, significantly higher than any other sized firm. The same percentage indicated their firm overall sees tech as a “necessary evil” rather than an opportunity.

Firms are mostly utilizing (and not utilizing) the same technologies.

Firm size and level of tech sophistication don’t have a significant impact when it comes to the technologies firms are most actively utilizing and those they’re least familiar with today.

Remote desktop and virtual conferencing technologies lead the way for the technologies firms most frequently use, with some likely adopting solutions out of necessity during the pandemic.

Artificial intelligence/machine learning technologies and blockchain technologies are overwhelmingly the technology that firms have the least experience using. They’re also among the top technologies firms are interested in exploring, alongside remote access, paperless/e-signature tools, client portals and Optical Character Recognition (OCR).

In addition to common technologies mentioned above, here are the top 5 software investments firms have most recently made:

• Tax/Audit/Accounting Software (29%)
• Electronic Signature (26%)
• Time/Work Management (25%)
• Cloudbase Software (25%)
• Storage (12%)

But software usage concerns lead the way for firm challenges.

Learning to use new software was the number two challenge across the board for firms of all sizes. Those who are struggling to keep up with tech (52%) and those who are on the leading edge (23%) share concerns about determining how new technology can integrate into their existing technology.

Interestingly, those firms falling behind with technology and those on the leading edge share the same top three challenges: Determining how technology can integrate with their existing technologies (52%/23%), how to use software (48%/23%) and identifying new software and technology to implement (39%/23%).

Overall, technology is leading the transformation of services.

Technology overall has a positive perception among respondents and their firms. 87% say their firm views technology as a tool that improves their performance. Other top views include technology produces efficiency (85%) and it enhances capabilities for clients (67%).

These positive views on technology go hand-in-hand with changed outlooks on services offered—especially when it comes to strategic consulting and business analysis services. 63% of respondents say that they see these services becoming a greater share of their work within the next 3–5 years. This is well ahead of tax planning (50%), estate planning (44%), tax return preparation (35%), payroll services (31%), and other traditional CPA firm services.

INCPAS is here to help.

Whether you feel like you’re falling behind, are employing innovative solutions, or somewhere in between, INCPAS is here to support you as the CPA profession continues to evolve.

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