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While several sectors and industries have progressed and evolved due to the presence of technology and innovations, accountants are starting to accept technology in finance, with their back against the wall. Being masters in the field of finance, accountants now are expected to ace in fields such as financial technology, compliance regulation, and crisis and risk management et al.
Although CPAs are familiar with the idea of Governance, Risk, and Compliance (GRC), GRC oftentimes seems more like an everyday task than an enterprise initiative. In order to handle this, organizations need to step out of the conventional thought process that GRC is compulsion the safeguards them from liability. Rather, the focus needs to be on the ability to collaborate across the organization, while staying ahead of competitors—particularly those who did not give adherence to compliance guidelines any importance.
It is imperative for a CPA to provide transparent insights to the organization decision makers, regarding the financial performance. With the recent standard in accounting and data-compliance regulations to protect the privacy, there has been an increase in the demand for transparency, while accountants toil under the pressure to handle GRC. The shortfall is that the sophistication required to provide the data and eliminate errors is at its lowermost level.
With the use of technological innovation, the process of producing the data can be made more efficient, with a significant drop in errors. This, in turn, can help to save the cost incurred in fixing the errors. The data that is made available that exceeds the standards of accounting, the excess data can prove vital to guide the organization to help recognize and handle risks.
The use of technology can help enhance the performance, demonstrating the success of GRC programs, impacting the bottom line of the organization. In addition to performance, the ability to prevent fraud is enhanced since there is a higher need to monitor the business process and examine the reliability of third-party vendors.
Setting apart all the technological aspects, changing the assumptions about accounting and its position with regard to GRC requires a change in the mindset. Although presently compliance may seem like a chore, where any mistake or lack of standard can be penalized, the presence of regulations makes it possible to detect, identify and avoid major losses to the organization.
See Also: Top GRC Technology Companies
