Redefining accounting means a modern firm does more than keep the books. It builds on the core values behind GAAP, uses AI and automation for faster and more accurate work, and protects client data with measures like two-factor authentication, encryption, cloud systems and the four-eyes principle. It also adopts an inclusive, people-first culture. For international businesses, it means advisory services that bridge cultural and regulatory differences.
Tools like AI have changed the U.S. market forever, and this is even more true for accounting firms. Now, businesses that want to succeed have to redefine what they thought accounting was and adapt to a brand-new world.
When you contact an American CPA firm, remember that it must consider AI and automation, security and IT investments, its accounting culture and its consulting services to fully understand and address your needs. If it doesn’t, you might want to consider whether it’s worth the investment!
In this article, we explore how firms can redefine accounting and provide quicker, more accurate accounting services for your business, while addressing international challenges with a modern workforce and innovative advisory services that add value to any strategy.
What is GAAP, and why does it matter?
Let’s get back to the basics for a moment. Understanding and following GAAP (Generally Accepted Accounting Principles) is crucial for keeping your financial records accurate and safe. GAAP is a set of rules that guide how U.S. financial records should be kept. Like its international counterpart, the International Financial Reporting Standards (IFRS), it ensures that financial information is clear and can be compared from one company to another.
Why does redefining accounting go beyond GAAP?
GAAP helps build trust in the financial market. Investors feel more comfortable because they can easily understand and compare financial statements. But that’s not everything. GAAP also reduces the risk of misrepresenting data, making financial reporting transparent to investors and stakeholders.
While GAAP doesn’t redefine accounting on its own, the core values behind these principles are worth looking for in any accounting firm: being compliant, consistent, sincere, honest and prudent. Redefining accounting should start by redefining how firms operate, based on what they believe in and value most.
Why are AI and automation crucial for a modern CPA firm?
Comparing manual accounting processes with AI-powered automation is like comparing a flip phone and a smartphone. Both can make calls, but the smartphone has handy features that improve your everyday life, like GPS and your favorite apps for music and games, to name just a few.
So if you choose an American CPA firm that uses AI automation, you can benefit from:
- Faster turnarounds and better access: cut down on hours billed and make every interaction smoother with AI-powered tools.
- Streamlined tax processes: handle taxes easily with automated systems that reduce risk and boost efficiency.
- Customized tax insights: move beyond standard solutions with tailored tax strategies that fit your business, using advanced analysis tools powered by AI.
For small businesses and entrepreneurs, tools like QuickBooks or Xero are affordable, quick and effective solutions. But if you want to optimize your M&A or cross-border logistics, you’ll probably need something more specific and customized for your business, like a one-on-one consultation with an American tax and accounting expert.
How can accounting firms keep financial data secure?
Keeping financial data and employee data secure is part of redefining accounting for the modern economy. Every CPA firm’s team plays a crucial role in protecting clients’ data. Security measures like two-factor authentication (2FA), encryption and a trained team should be part of every modern accounting firm.
Why are security concerns on the rise?
Unfortunately, anyone can be prone to mistakes and data breaches. A recent report from IBM Security showed that the cost of data breaches in several sectors, including the financial, industrial, technology and energy sectors, exceeded USD 5 million in 2023. More concerning still, the share of financial data breaches rose from 15% in 2022 to 21% in 2023.
This is a real concern, as sensitive information may be available to any hacker who knows where to look. Take the Capital One breach in 2023, caused by a vulnerability in one of its partners’ systems, NCB Management. An undetected security weakness leaked sensitive information, including Social Security numbers, account numbers and credit card numbers, leaving Capital One customers at risk of identity theft and financial fraud.
How can accounting be more secure against increasing threats?
To make any accounting organization secure, businesses need to go beyond internal measures like 2FA or firewalls and update their privacy policies to include rigorous security measures that tackle vulnerabilities at their core.
To support these measures, cloud accounting lets companies use online applications and services hosted securely on remote servers. With real-time software updates and industry best practices, cloud systems can adapt to each company’s needs.
Another security measure is the four-eyes principle, which states that any activity, such as a decision or a transaction, must be approved by at least two people. This simple yet effective control facilitates the delegation of authority, increases transparency and can be supported by electronic approvals and workflows.
What does a modern accounting culture look like?
A fundamental part of redefining the American CPA firm is adapting to a modern working culture for continued success and growth. In 2023, women made up almost 60% of U.S. accountants and auditors, and a diverse, flexible and balanced workplace is increasingly a necessity. Take Orbiss, for example: our commitment to an inclusive workplace has led to a majority of our managerial and leadership roles being held by women.
For international businesses like yours, overcoming cultural and language barriers is a growing concern. When there are major differences in labor markets, laws and work norms, companies need specialized, diverse teams to create customized CPA services that lead to smarter decisions and cost-effective results.
This also calls for a “people-first” approach, where flexible working environments, competitive compensation and benefits, trust and autonomy lead to better productivity, better relationships and a better place to work. That’s why a modern accounting culture should be ready to handle modern challenges. A flexible, balanced workplace benefits mental and physical health, creativity and productivity, and it can also bring better client relationships and retention along the way.
Let’s redefine accounting together
For us and our clients, success goes beyond the numbers. We recognize that security challenges, new technologies and different regulations can feel overwhelming in the American market, and we want to help.
Our objective is to create opportunities that elevate your business. We follow strict security standards, use the best technology on the market and take the time to understand your needs to ensure lasting success. We are redefining what it means to do business, one satisfied customer at a time.
It’s time to take your business to the next level with our customized accounting, bookkeeping and custom reporting services. Get in touch with us today and take the first step toward scaling up with Orbiss!
Frequently asked questions
What is GAAP?
GAAP (Generally Accepted Accounting Principles) is the set of rules that guide how U.S. financial records are kept. Like its international counterpart, IFRS, it ensures financial information is clear and comparable from one company to another.
How does AI help accounting firms?
AI and automation bring faster turnarounds and smoother interactions, streamlined tax processes that reduce risk, and customized tax insights from advanced analysis tools.
How can accounting firms protect client data?
With measures such as two-factor authentication, encryption, a trained team, secure cloud accounting systems and the four-eyes principle, under which any decision or transaction must be approved by at least two people.
What is the four-eyes principle?
A control under which any activity, such as a decision or a transaction, must be approved by at least two people. It facilitates the delegation of authority, increases transparency and can be supported by electronic approvals and workflows.
This article is for general informational purposes only and does not constitute legal, tax, or accounting advice. Rules and requirements vary by company, individual, and jurisdiction, and can change. Please seek advice appropriate to your specific situation.