Are you curious about how technology is transforming the accounting profession and what skills are now essential for success in this evolving landscape?

In this episode, co-hosts Damian Gracehead and Penny Breslin discuss the impact of bots on accounting, the importance of human review in automation, and how keen learners can help keep professionals updated. They also explore the fluid part of advisory consulting in a Client Accounting and Advisory Services (CAS) model. As they delve into their favorite past episodes and events, they also share insights about the face of business operations in their sector today and the evolution over the years.

[00:00 - 04:56] Year-End Accounting Challenges and Solutions

• The episode focuses on various aspects of CAS (Client Accounting and Advisory Services), cloud bookkeeping, virtual controller services, and virtual CFO services.
• Damien and Penny delve into the activities and tasks that firms and clients are engaged in during the end-of-year period. Penny describes how their firm handles year-end cleanups, tax preparations, and dealing with clients who haven’t reviewed their files throughout the year.
• Penny emphasizes ensuring that data for tax preparation is comprehensive and up-to-date in different software platforms used by clients.
• They also touch upon changes in tax processes, like the shift from annual to quarterly or monthly sales tax submissions.

[04:56 - 11:52] The Role of Bots in Accounting

• There is an increasing reliance on automation for financial reconciliations, particularly towards the year-end rush.
• A specific case study: a firm working with a client's company file for two years, noticing unusual transactions—a series of identical charges from Audible.com flagged by the team leader.
• It is important to be regularly involved in the financial files to catch such mistakes.
• Damien and Penny share insight into the limitations of bots and AI in accounting, emphasizing the need for human oversight.

[11:52 - 21:14] Regular File Review and Understanding the Logic Behind Automated Transaction

• Penny and Damien discuss the challenges of relying too heavily on automation and AI in accounting, particularly with reconciliation processes.
• How close monitoring and a thorough understanding of the client's file helped in quickly identifying and rectifying the mistake.
• It is important to have a proactive approach in accounting, especially in dealing with automated systems.
• Changes in technology impact the workflow in accounting, with an example of the transition from desktop accounting to cloud-based systems.
• They reflect on how technology can disrupt traditional accounting practices but also requires new skills and understanding from practitioners.

[21:14 - 31:55] The Unpredictability of Bank Feeds

• Damien and Penny discuss the end-of-year work rush and the increasing reliance on technology in accounting.
• They share insights into the proactive approach and quick action taken to rectify the bot error, including getting refunds and making necessary corrections.
• Some accountants and bookkeepers are reluctant to fully embrace new technology due to past experiences or mistrust.
• There is a need for continuous learning and adaptation in the accounting profession, especially in relation to technology.
• It is important to be adaptable and open to learning in the accounting profession, especially with the rapid evolution of technology.

[31:55 - 35:47] The Importance of a Learning Culture in a Firm

• It is important to have a learning mentality within the firm, with a nod to the educational approach in the United States that encourages problem-solving and independent learning.
• Sharing of a culture within the firm where team members regularly post educational content fosters a collective learning environment.
• Damien and Penny discuss the podcast's success over the years, including favorite episodes and events attended.

Tweetable Quote:

"Human beings still have to think, you can't let the bots do everything." - Penny Breslin

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Websites: https://moneypennyllc.com/

LinkedIn: https://www.linkedin.com/in/damiengreathead/

Twitter: @Damien_GH

LinkedIn: https://www.linkedin.com/in/penny-breslin-0228b81/

Twitter: @pennyb57