The Young CPA Success Show Ethical Accounting in the Age of Automation: Insights from Bench's Shutdown with FinOptimal
Episode Title: Ethical Accounting in the Age of Automation: Insights from Bench's Shutdown
Episode Summary:
Tom and Jesse from FinOptimal return to the show to discuss the Bench shutdown with Hannah and Joey. Along the way they discuss the rise of AI in the industry, changes to the 150 CPE credit rule, memes, and how CPAs can better convey what they do to clients. The conversation underscores the importance of adaptability, effective communication, and maintaining professional standards amidst technological changes, using Bench's experience as a cautionary tale for the profession.
Episode Quote:
"No matter what, whoever stays on the cutting edge of what's new is going to be okay. If you have that much red tape and hesitancy to try new stuff, you're going to get left behind." -Tom Zehentner
The finer details of this episode:
● Recent developments surrounding the company Bench and its implications.
● Impact of artificial intelligence and automation on accounting practices.
● Pricing strategies and the sustainability of low-cost accounting services.
● Importance of effective communication and client engagement in accounting.
● Future of the accounting profession in light of technological advancements and market changes.
Episode resources:
● Summit Virtual CFO by Anders website: https://www.summitcpa.net/
● Email us with questions or if you’d like to be a guest on the show: youngcpasuccessshow@anderscpa.com
● We’re hiring! Check out our open positions: https://www.summitcpa.net/career-opportunities
● Check out Tom and Jesse at https://www.finoptimal.com/
Timestamps:
Podcast Episode Timestamps
Introduction to the Podcast (00:00:00)
Overview of the podcast's purpose for young accounting professionals.
Artificial Intelligence in Accounting (00:00:22)
Discussion on the impact of AI and automation in the accounting industry.
Bench's Downfall (00:01:01)
Speaker reflects on Bench's failure and compares it to similar companies.
Synopsis of Bench's Situation (00:01:46)
Speaker provides a brief history and overview of Bench's business model and challenges.
Bench's Business Strategy (00:03:10)
Analysis of Bench's target market and pricing strategy in the accounting industry.
Bench's Abrupt Closure (00:04:12)
Details about Bench's sudden shutdown and subsequent acquisition.
Discussion on Pricing and Market Position (00:05:16)
Debate on whether Bench's pricing strategy contributed to its failure.
Building a General Ledger (00:06:18)
Insights on the challenges of developing a proprietary general ledger in accounting.
Industry Reaction to Bench's Demise (00:08:00)
Exploration of the accounting community's mixed reactions to Bench's failure.
The Ethics of Offshoring (00:09:15)
Concerns about the ethics of offshoring in the accounting industry.
Echo Chamber of Opinions (00:10:10)
Critique of the repetitive nature of industry opinions following Bench's downfall.
Branding Issues in Accounting (00:14:00)
Discussion on the lack of clear branding and definitions within the accounting profession.
The Need for Standardization (00:15:04)
Debate on the challenges of standardizing roles and services in accounting.
Empowering the Accounting Community (00:17:49)
Call for accounting professionals to charge more and elevate industry standards.
Understanding Legal Fees vs. Accounting Fees (00:18:54)
Discussion on the disparity in perceptions of value between legal fees and accounting services.
The Need for Better Communication in Accounting (00:19:50)
Emphasis on accountants demonstrating their value effectively to clients.
Challenges in Marketing Accounting Services (00:20:59)
Insights on the difficulties accountants face in marketing their services to business owners.
Using Memes to Explain Accounting (00:22:06)
Proposal to use memes as a tool to communicate accounting concepts to clients.
The Importance of Relatable Communication (00:23:05)
Advocating for a more human approach in explaining accounting to clients.
Targeted Marketing Strategies (00:24:26)
Discussion on tailoring marketing strategies to specific demographics like sports fans or millennial moms.
Memes as a Service Concept (00:25:35)
Idea of creating a service dedicated to developing accounting-related memes for marketing.
The Role of Personal Branding (00:26:50)
Exploration of how personal branding and visual cues reflect professional identity.
Curriculum Changes in Accounting Education (00:28:20)
Suggestion that accounting education should include marketing and communication skills.
Concerns Over the 150-Hour CPA Requirement (00:29:26)
Debate on whether reducing the 150-hour requirement will effectively address the accounting profession's challenges.
Need for Practical Skills in CPA Certification (00:31:02)
Call for more practical examinations in CPA certification rather than focusing solely on credit hours.
Addressing the Accounting Pipeline Problem (00:34:09)
Discussion on broader issues affecting the accounting profession, beyond just the 150-hour rule.
Podcast Episode Timestamps
The Impact of AI on Jobs (00:36:38)
Discussion on how AI won't take jobs, but those who adapt will thrive.
Embracing Innovation in Accounting (00:37:00)
The importance of trying new technologies to stay competitive in the accounting field.
Automation Opportunities in Accounting (00:38:41)
Exploration of a tool to automate the closed workbook reconciliation process.
Finding the Right Solutions (00:39:15)
Discussion on the challenges of finding comprehensive accounting solutions.
Leveraging Technology for Efficiency (00:40:03)
Insights on using Google Sheets and QuickBooks for effective accounting practices.
Product Development and Features (00:46:01)
Overview of new products being developed to enhance accounting efficiency.
Building Trust in Technology (00:48:00)
Importance of reliability in accounting software and the skepticism of accountants.
Using Tools in Practice (00:49:10)
The value of actively using developed products in real-world accounting scenarios.