Problem:
Despite the company’s success, the CFO believes that United Towers requires additional improvements in their reporting and accounting. The CFO recognizes that the accounting world is changing and that their company must stay current with these changes in order to remain successful. Technology is helping companies become more efficient with the creation of XBRL, the automation of transaction recording, and the use of advanced communication tools within the business world. The responsibilities and roles of accountants are changing as well. Not only do they need to remain current on all things domestic, they need to become knowledgeable of accounting standards internationally as well.
Alternative 1:
Management being explained this demand by the CFO decide that they will create new positions and or remove current management to make room for CPAs that have training in technology to support new the institution of XBRL as well as other business technology software advancements.
The company will also look for those CPAs that either have experience or have an exceptional understanding of business issues affecting companies both domestically and internationally. With the potential of one international set of accounting standards being adopted, United Towers recognizes the importance of being current on these changes.
Alternative 2:
United Towers decides to promote change within the company’s current employees. They decide to hire outside consultants to find weaknesses within the company and offer suggestions to make improvements. It is suggested to hire consultants to train the company employees on XBRL as well as installing video conferencing technology to allow for meetings with associates in other countries without any travel costs. The company should also create an education portal that employees can access anytime that provides courses on using Microsoft Office Suite as well as other technological training solutions.
They also suggest providing all employees with laptops and access to company emails on their smart phones and PDAs. This will give the employees the ability to work from anywhere at any time of day making them more efficient at their jobs.
The company should also set aside funds to prepare for the potential adoption of IFRS in the next 5 to ten years. The company will have to hire experts and consultants to train their employees on the changes and new standards that the company will have to abide by.
The last thing that is suggested is that the company offer monthly and quarterly classes for employees that will keep them current with new regulations and standards. The company should also reimburse employees for any outside classes that they take that will help them become more proficient in their position.
Solution:
Alternative 2 is the best solution. The company should encourage their CPAs to stay current with all the changes that are happening in the accounting world. They should emphasize to their employees that the roles of accountants are expanding and they must adapt to these changes. The accountants should also look to add value to their company outside of the typical accounting duties. They should look for ways to make process improvements within the company as well as offer guidance where needed.
References
CPA Horizons 2025: A Road Map for the Future. (2011). Journal of Accountancy , 44-47.
Drew, J. (2012, June). Technology and CPAs: Visions of the future. Retrieved December 2012, from Journal of Accountancy: http://www.journalofaccountancy.com/Issues/2012/Jun/20114844.htm
References: CPA Horizons 2025: A Road Map for the Future. (2011). Journal of Accountancy , 44-47. Drew, J. (2012, June). Technology and CPAs: Visions of the future. Retrieved December 2012, from Journal of Accountancy: http://www.journalofaccountancy.com/Issues/2012/Jun/20114844.htm
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