Technology is more important to Los Angeles CPA firms today than ever before. It is no secret that technology helps make various aspects of a business simpler and more efficient, from communication, to reporting, and more.
Outdated technology can cause a host of problems for a CPA business, both internally and externally for clients. These are three issues CPA firms can face if they are using outdated technology.
1. Security Risks Become Much More Concerning
Security should be a top priority for any business, not just CPA firms. When a client decides to do business with a firm, they should feel secure in knowing that the information they turn over is in safe hands. It could be very harmful to a company to have their information stolen or leaked due to a security flaw in a firm’s technology.
This could also potentially result in a huge loss of business for the CPA firm that allowed the leak to occur and damage its reputation badly. It is important that Los Angeles CPA firms stay on top of updating their security measures frequently to ensure the information they hold does not fall into the wrong hands.
2. The Potential for Loss and Frustration is Much Greater
Outdated hardware and backup procedures can put a business at great risk if their systems fail. Old systems are more prone to crashes, which can result in the loss of data and important information. It also results in the loss of time in a given process, which can be frustrating to employees.
Having no backup systems or outdated backup procedures can be destructive to a business. Maintaining updated hardware and software is a must for any CPA firm looking to protect their digital assets and minimize frustration. Another way CPA firms lessen their risk is by housing their files on a cloud-based server, which decreases their reliance on hardware.
3. Slowdowns in Information and Processes
In today’s rapidly evolving business environment, firms are constantly looking for ways to maintain an advantage over their competitors. Having outdated software and hardware capabilities can hurt a firm’s competitive advantage.
Newer software can provide fresh ways of analyzing data and providing insight that outdated technology cannot. Another reason is that more modern technology can facilitate making business processes faster and more efficient, which frees up more time to focus on more clients or address other areas of need.
Sometimes, it can be critical for a business to pull together information rapidly. If a new type of software can cut a business process in half, then it would be well worth the investment.
The Bottom Line
These are just a few reasons why outdated technology is causing problems for Los Angeles CPA firms, but they are certainly not the only reasons. Having up-to-date technology is a problem that many firms fail to address, both large and small. Los Angeles CPA firms should be aware of the potential risks associated with having outdated technology.
Is your Los Angeles CPA practice still using some outdated technology? What are your plans to remedy the situation? Let us know your thoughts in the Comments box below.
And to follow-through on the tips introduced in this short article, be sure to download your free guide, 12 Ways for CPA Firms in LA to Utilize Technology More Efficiently.