Accounting firms to ramp up technology spend in 2024, survey reveals
A significantly larger proportion of accounting firms plan to invest in technology this year, a recent Caseware survey reveals.
Accounting firms are showing a much greater commitment to technology investment this year, with engagement software and AI some of the top areas for investment, according to the 2024 State of Accounting Firms Trends Report by Caseware.
The survey revealed that 77 per cent of survey respondents stated that their financial outlay for investment in technology investment will increase either significantly or slightly over the next two years. This is a substantial increase from the 2023 survey when only 8 per cent of firms planned to increase their investment in technology.
Caseware noted that there has been an influx of new technologies into the accounting landscape recently, with generative AI being a notable example.
“Despite only becoming widely available in the year that our survey was conducted, more than 10 per cent of respondents identified it as a top-three area of intended software investment for 2024,” the software firm said.
Engagement software for audit, review, compilation and tax was selected as a top-three area of investment for the coming year by 21 per cent of respondents.
Caseware’s 2024 State of Internal Audit Trends Report showed similar trends for auditors, with the use of data analytics and the cloud now much more prevalent.
The vast majority of respondents indicated that they now use data analytics in their auditing activities. Around two in 10 use data analytics for all audits while 57 per cent use data analytics for some audits.
This was an increase from the previous year when 44 per cent stated they were not using data analytics for any audits.
Caseware said this was an encouraging sign with data analytics improving the accuracy and efficiency of audits and making it simpler to identify anomalies.
“It also helps identify high-risk areas or control deficiencies,” the firm said.
The survey also indicated that over 72 per cent of respondents in the audit survey are using cloud-based audit technology.
Talent still a major challenge for most firms
The Accounting Firms Trends Report also revealed that hiring and retaining talent remains a key issue for accounting firms.
Overall, 88 per cent of respondents said hiring and retaining talent was challenging to some degree, with 47 per cent describing it as somewhat challenging and 41 per cent saying it was extremely challenging.
To address these challenges, 32 per cent are offering training programs to upskill existing employees, 27 per cent are offering newly-created roles and capabilities in their firms and 24 per cent are opting to employ a third-party talent sourcing service.
The auditing industry is facing similar pressures, with only 10 per cent of respondents stating that finding and retaining talent was not a challenge.
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