15760 Ventura Blvd, Suite 610 Encino, CA 91436
FREE CONSULTATION818-436-2775
15760 Ventura Blvd, Suite 610 Encino, CA 91436
FREE CONSULTATION818-436-2775
Blog
Personal, Affordable Payroll Services, Bookkeeping, and Tax Processing for Small Business throughout Los Angeles County.

Bridging the Technology Gap in Accounting and Finance

bridging the technology gap

Just like businesses and individuals all over the world, banks and other financial institutions are implementing the use of technology to complete their daily goals. However, at many points along the spectrum of professionals who work with money, from Los Angeles accounting firms to the banks which they audit, technology is being under-utilized or used inefficiently. Large portions of the budget are often set aside each year specifically to update technology in order to meet regulatory requirements and standards in accounting. Unfortunately, there is a gap between the amount of money being spent and the returns from that investment.

 

The Reasons Behind the Gap

As the industry standards and regulations in accounting, banking, and financing continue to become more complicated, the creators of technology will continue to design programs to meet the new challenges. The problem is that too many of the professionals who purchase that technology are not fully aware of their needs before they choose the technology. A lot of money is being spent on programs and systems that don’t accurately address the standards or transactions of the institution. For example, when the Financial Accounting Standards Board released FAS 91, many institutions were still utilizing software for past versions.

 

Are Accountants Keeping Up With Technological Advances?

Another area where there is a gap between the available technology and its efficient utilization is with the accountants and other financial professionals. When consumers visit with their Los Angeles accounting firms, they are often looking for advice regarding which bookkeeping programs. This means that the accountants may need to be as versed in small business technology as they are in the financial advice, but many of them are not.

 

Building the Bridge

Ultimately, technology can be of great benefit to professionals in the financial industry, but it can also lead to trouble when it isn’t used correctly. In order to narrow the gap between what technology can do and what is actually being done, Los Angeles accounting firms need to pay specific attention to the way they are performing their key functions and then identify the software, programming, or systems that meet those needs.