5 Crucial Technologies to Improve Your Tax Practice and Increase Your Profit Margin in 2022
The accounting industry is swiftly changing due to the effectiveness of modern technologies. Thanks to these advances, certified public accountants, also known as CPAs and other finance experts, are able to take advantage of essential technologies and accomplish their daily duties without being bogged down with repetitive tasks.
Accounting procedures are becoming more efficient through automation and other present-day technologies, changing the way accountants operate on a daily basis. Today, accountants can help businesses make critical decisions regarding their finances without having to collect and track the company's finances with a naked eye. This shift in daily operations enables CPAs to dive deeper into their client's records, serving as an accountant and business advisor at once.
Needless to say, modern-day technology is key to increasing the annual revenue of any business. Here at Intuitive Networks, we know how much automated processes can benefit your tax practice, so we have decided to compile a list of five crucial technologies to help streamline your business and increase your profit margins in 2022. Continue reading to find out what technologies you need to make this shift in your tax practice in 2022.
Automation
While face-to-face communication and detailed human review are essential to a successful tax preparation procedure, a balance of both human reviews along with digital automation is game-changing for all accounting professionals. Softwares such as ProSeries Professional, ProConnect Tax, TaxAct Professional, Drake Tax, Lacerte, and CCH Axcess Tax are all among a list of the best tax software programs today. Ultimately, automation reduces errors and removes uncertainty, which is why tax preparers choose automated solutions in the first place.
Cloud-Based Technology
If your business is not utilizing cloud technology, you are definitely missing out on effective tax solutions. Cloud-based technology permits clients to receive updates in real time.
At Intuitive Networks, we have a team of experts who specialize in resolving challenges and collaborating with your business to optimize your bookkeeping and accounting activities. Our team combines companies with the most up-to-date technology and innovations to revamp your tax practice.
Blockchain
Another way to improve your tax practice is through blockchain technology. Blockchain technology deals with the transfer of ownership of assets and maintaining accurate financial records. The finance industry is being altered by decreasing the expenses of balancing and managing accounting data through blockchain technology. It also gives the necessary accuracy in profitability, safe asset keeping, and source.
Remote Accounting
Working remotely has been an upward trend over the past couple of years due to the pandemic. While it can be tough to accomplish all work-related tasks from home, CPA firms can still provide impeccable service to their clients through digital accounting practices. CPA firms must take into account several factors regarding information security to minimize cyber attacks and data theft. Regardless of possible security threats, many areas of accounting operations can be done remotely and correctly.
Social Media Marketing
There's no doubt that social media can benefit all businesses in a positive way. From establishing relationships to gaining visibility online and increasing revenue, social media marketing can positively impact your business's profitability. Although social media can't do it all, it can boost growth, reach, and exposure when used correctly.
Final Thoughts
Utilizing automation, blockchain, social media, and cloud-based technology can significantly increase profitability in 2022. Technology can be a deciding factor between a decent and phenomenal tax professional. These are just five of the many ways business owners can advance their tax practice. With the appropriate technology, accountants can have a more efficient and effective tax practice which would provide advancement to their profession. Talk to an INI specialist and start building a plan for your CPA firm today!
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Security Concerns for Business Owners in the Finance Space: Phishing, Malware and Ransomware Attacks
Businesses in the financial space play an integral role in keeping the economy thriving, so it’s no surprise they’re often the targets of phishing scandals. That is why we've compiled a list of security concerns for business owners in the finance space. Originally coined in 1996 by hackers stealing AOL accounts and passwords, Phishing gets its name from the sport of angling, where e-mail “lures” were set out to “fish” for passwords and financial data from the “sea” of internet users. The “lures” used in phishing attacks are often quite convincing, pretending to be a trusted entity in order to trick the victim into opening an email or text message. Once clicked, that link often leads to malware being installed on the victim’s system as part of a ransomware attack to steal sensitive information. The attackers then use this information to access accounts, make transfers, or commit credit card fraud. Attackers can also sell the information on the black market.
What is Phishing?
Image source: Phish Labs
Phishing attacks can cause devastating losses to businesses in the financial space - including declining market share, financial losses, and the destruction of their reputation and customer trust. In 2021, cybersecurity experts and IT professionals noted a record-breaking increase in cyberattacks. According to Check Point Research, cyberattacks increased 50% year-over-year, with an estimated 30,000 websites hacked every day. In their Cost of a Data Breach Report 2021, Ponemon Institute and IBM noted a 10% increase in the average total cost of a data breach; increasing from $3.86 million to $4.24. This is the highest average total cost of a data breach ever recorded in the 17-year history of the report.
When compared with other industries, at 41% the financial sector is the target of most phishing crimes, followed by social networking services (19%), and email services (17%). As the number, intensity, and variety of these cyberattacks continue to increase in 2022. Cybercriminals devise new strategies for launching sophisticated attacks. So, how can the financial industry protect itself?
What is BullPhish ID?
One of the best ways to help your financial company protect itself against phishing attacks is by educating your staff. BullPhish ID is one of the best tools to help your company accomplish that task. Upwards of 90% of all company security breaches aren’t caused by hackers, malware, or viruses; they’re caused by employees falling for phishing scams. BullPhish ID for MSPs is a cloud-based anti-phishing and educational tool that can help protect your company from phishing scams, while also training your employees to recognize phishing attacks and understand how to respond to them. The platform allows your business to deliver simulated security threats and phishing incidents in order to help educate and test your employees.
Pub 4557
Another way to protect your financial institution is to ensure you’re compliant with Pub 4557. This regulation provides the minimum requirements for electronic storage of records, including email. That means that your company must implement physical, technical, and administrative safeguards for storing and transmitting member information. While this compliance is important from a security standpoint, it’s also required by law.
How Can an MSP Protect Against Phishing Attacks?
Phishing scams can be truly devastating to your financial institution. The best defense against attacks is a strong offense. Working with an industry-leading Managed Service Provider (MSP) like Intuitive Networks means we can help alleviate your unique pain points - such as protecting against phishing attacks. Our business is centered around providing your financial institution with peace of mind, knowing that your company is protected. Whether you’re looking to protect your business against cyberattacks, or are interested in enhancing your infrastructure, our team of IT professionals is here to help!
How to Eliminate the top 5 IT challenges in your CPA firm.