Changing into a Digital CPA: Step-by-Step Information


Within the age of COVID-19, the notion of working nearly has turn into so commonplace it’s nearly clichéd to even talk about it as someway novel or noteworthy, however on this planet of the CPA, the transfer to working past the workplace is neither new nor straightforward. CPAs face vital points when taking their efforts outdoors their company partitions.

Rise of the Digital CPA

The concept of the digital CPA is hardly new. Many CPA corporations had distant capabilities relationship way back to the Seventies, with modems dialing instantly into workplace networks. These relied on centralized methods housed in LAN rooms at CPA agency places of work with work backed as much as storage tapes. As time progressed, the applied sciences permitting distant work matured; within the early 2000s, we noticed the introduction of cloud storage and distant internet hosting, the proliferation of digital desktops, and the start of the top for native internet hosting. In the present day, almost each skilled software program vendor within the area, like Thomson Reuters, Intuit, CCH, and others all promote absolutely cloud-based options for CPAs and their corporations eliminating nearly any want for centralized servers or storage.

Particular person practitioners have been in a position to make use of these applied sciences to offer outsourced digital accounting companies as a main service to companies that can’t afford or don’t wish to have native in-office accounting staffs.

 This has allowed the CPA to go absolutely distant…in the event that they or, extra importantly, their agency or shoppers are keen to. A CPA can now technically work and function at 100% capability almost wherever on the planet (or, no less than, wherever there’s Web entry, which, by advantage of cell hotspots is successfully wherever). Regardless of that functionality, CPAs and CPA corporations have tended to achieve a repute as risk-averse late adopters. Regardless of a long time of technological progress, in accordance with the CPA Agency Administration Affiliation’s 2020 Data Know-how Survey, solely about half make the most of an exterior cloud supplier to host their purposes. Two-thirds do use digital server merchandise. Surprisingly, in accordance with the Journal of Accountancy’s 2020 Tax Software program Survey, a full 81% of tax corporations domestically host their tax software program.

Given the place the trade is, digital CPAs are pressured to work in considered one of two methods. The primary is the CPA working for a agency or a gaggle of shoppers that hosts its personal software program on its server. These CPAs will both use a digital personal community to hook up with the community remotely and use locally-hosted software program or they’ll use a digital desktop answer to manage their server-based desktop on the agency’s dwelling location. The second is the CPA whose agency’s purposes are absolutely cloud-based, wherein case they’ll both use a browser or native software to entry that knowledge. Both means, work will be accomplished remotely successfully. Corporations can make the most of both strategy to create the power for his or her CPAs and workers to work wherever and, in lots of circumstances, be obtainable to shoppers almost 24/7.

Digital CPA: Execs and Cons

Like all scenario, there are advantages and downsides to contemplate. On condition that the trade as a complete has been apparently reluctant to go absolutely cloud-based, it ought to function no shock that there are vital hurdles to contemplate, each from the angle of the CPA (worker) and the Agency itself.


The professionals are pretty simple. A CPA can work wherever, anytime. There are myriad cases the place that is clearly helpful. A pandemic? Work at home. A pure catastrophe? Work out of your lodge room within the subsequent state. Sick child? Go dwelling and knock out your work throughout nap time. On trip however don’t wish to use a complete trip day? Work from eight to midday from the balcony overlooking the seashore.

The flexibility to pop open a laptop computer and work from a seashore in Tahiti immediately relatively than slogging by way of a commute into the workplace is very engaging. Corporations can provide workers a break by permitting them to work at home a few days every week, thereby saving them the time and value of commuting. 

Shopper satisfaction will also be considerably impacted for the higher, by giving a CPA entry to consumer knowledge remotely to fulfill an emergent want relatively than ready till the following enterprise day. CPAs are in a position to create the looks of being within the workplace with out doing so. (After all, simply be certain to not hop on a Zoom name together with your largest consumer whereas sporting that T-shirt you slept in final evening.)

If the CPA isn’t working for a agency or personal firm, however as a substitute is serving particular person shoppers as an outsourced supplier, it permits them to keep away from the overhead of getting devoted places of work and permits the shoppers the power to interface by way of cloud-based or remotely-hosted companies.

Working nearly offers the CPA vital flexibility, notably in an age the place it may be powerful to strike an excellent work-life stability.


The cons facet of the equation is especially powerful to beat, and they’re doubtless why so many corporations and corporations are nonetheless struggling to advance within the space of distant work with respect to their accounting and finance groups. The only largest concern CPAs have with placing data on-line to facilitate digital work is knowledge safety and the associated legal responsibility. A stolen laptop computer or mobile phone might give a less-than-savory particular person entry to delicate consumer knowledge. There are many methods to beat the legal responsibility related to this, together with outsourcing to distributors who adhere to trade greatest practices, insuring towards knowledge theft and cyber threat, and implementing strict system IT controls (particularly in bring-your-own-device “BYOD” conditions). However, these aren’t ensures of information safety and it’s well-known amongst CPAs that a breach or assault can destroy a agency.

Moreover, some corporations can interpret a CPA’s means to work wherever as a method to entry workers and have work accomplished at any time. The HR issues listed below are vital and, in appearing as a digital CPA, it’s crucial to know easy methods to create acceptable boundaries.

Information to Providing Digital CPA Companies

It’s essential to delineate between totally different situations when figuring out easy methods to provide digital CPA companies. There are a number of other ways the companies play out, however they primarily current themselves in a number of methods:

Established CPA Agency Using Distant Employees

Most CPAs work for CPA corporations or personal trade companies and, in contemplating digital work, primarily need to have the ability to work outdoors the workplace. For CPA corporations, whereas the service combine varies (accounting, attestation, taxation, consulting, and so on.), the essential consideration is figuring out whether or not the work can truly be accomplished in a distant trend. For instance, if a consumer sends paperwork in bodily kind (like, say, a shoebox filled with receipts for his or her tax return), there must be a provision for making these obtainable digitally and figuring out if it’s economical to take action (e.g., how a lot would it not value to have an admin scan in all of these receipts?). Alternatively, if the agency is dealing with outsourced accounting with software program tied to the consumer’s financial institution and debt accounts and has the power to carry out ongoing write-up companies with little interplay with bodily paperwork, it might probably work nicely. Performing distant audit work could require the consumer to have the aptitude of permitting the auditor direct entry to their accounting system relatively than being offered reviews by the interior accounting workers. They might or could not need that. 

Basically, the difficulty right here is whether or not the management of the CPA agency feels its consumer base and repair combine will accommodate distant work. Many youthful companions in CPA corporations have been main the cost to develop companies in digital kind by forming new divisions inside corporations specializing in that work.

Non-public Trade CPA

Many CPAs work in personal trade as CFOs, controllers, accounting managers, and different workers inside non-CPA corporations and personal corporations. Performing as a digital CPA on this surroundings is a bit totally different as a result of there’s just one entity concerned: the corporate itself. Most corporations, relying on dimension, have moved to cloud-based inner accounting methods (resembling Quickbooks On-line, Xero, Netsuite, SAP’s cloud options, and so on.). These methods, or APIs that improve them, can simply present for distant dealing with of operations, together with administration of receivables, payables, inventories, payroll, banking, debt administration, investing, and so forth. As soon as established, most corporations are able to enabling their accounting and finance groups to work remotely.

Self-Employed CPA

Self-employed CPAs cowl the gamut of companies; nevertheless working as a digital CPA is very suited to this group. Digital CPAs have entry to a number of cloud-based software program options which might be conveniently priced a-la-carte (i.e., on a per-client foundation), provide safety that’s powerful to attain with out assist, and permit the digital CPA to offer tailor-made companies to a various consumer combine. The digital CPA, on this case, can act as an outsourced accountant serving to small corporations obtain correct inner controls the place they in any other case may not have the ability to accomplish it, or by serving as a marketing consultant to bigger corporations that want particular, focused companies. Both means, virtualizing the agency is sort of preferable to any different to make sure continuity of operations, ease of entry, and an air of professionalism.

Subsequent Steps

So, have you ever determined that you just or your agency can overcome the obstacles and also you’re able to work any time, wherever? It might be time to speak to management in your present agency about transferring towards cloud-based or virtualized options and spearheading digital outsourced companies for its shoppers. Alternatively, you may discover it higher to seek out a place at corporations trying to rent digital CPAs. If that’s the case, try the digital CPA corporations and digital CPA job openings at the moment!


Accounting Principals

We’re Accounting Principals–a chief in finance and accounting staffing. The truth is, since 2010, we have been a part of Adecco Group, a World 500 firm and chief in staffing companies world wide. However this is not staffing as ordinary. We take fairly a distinct strategy than most staffing businesses. A people-focused strategy. We imagine in forming actual relationships with each our shoppers and our candidates. We wish to perceive the wants on each side.


Please enter your comment!
Please enter your name here

Share post:




More like this

The financial institution department isn’t useless

On the heels of a tumultuous spring that...

AI is Right here — Ought to Your Agency Embrace It?

There is not any doubt that the accounting...

What’s SIP Trunking? The way it Works, Advantages & Easy methods to Get It

What's SIP Trunking? Session Initiation Protocol (SIP) Trunking is...

Navigating Generative AI: A 3-Step Information for Knowledge Leaders to Transfer from Hype to Outcomes

Generative AI has the potential to revolutionize companies,...
%d bloggers like this: