CPA firms diversify in technology consulting

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The idea that CPA firms just balance books and do taxes has gone the way of green eye shades and handwritten ledgers.|ret||ret||tab|

Business consulting has been a regular service of area CPAs for some time, and information technology is further expanding the role of the accounting professional.|ret||ret||tab|

Now, many CPA firms consult with businesses about computers, software, the Internet and new technologies that touch upon or are integrated with keeping track of numbers.|ret||ret||tab|

"The development of technology consulting services in connection with CPA firms has come about as CPAs have seen that one of their clients' biggest areas of concern and expense is in computer technology," said Larry Ellison of KPM Technology LLC, an affiliate of Kirkpatrick Phillips & Miller CPAs PC. |ret||ret||tab|

"The establishment of affiliate technology consulting arises from the needs of clients and the desire of CPA firms to provide a reliable and capable service to those clients, backed-up by the integrity and customer-service history of the CPA involved," Ellison added.|ret||ret||tab|

Not all CPA firms that provide technology consulting have a separate affiliate to handle the service. |ret||ret||tab|

Some have divisions or departments; others may not have any distinct separation within the firm.|ret||ret||tab|

Local CPAs said there are a number of reasons a business might want to consult with its accountant on computers and software, rather than a general computer consultant.|ret||ret||tab|

"CPAs get upset when outside consultants set things up certain ways and, say, at the end of the year they can't get printouts to set up the books," said Dan Titus, systems administrator, Roberts McKenzie, Mangan & Cummings PC.|ret||ret||tab|

"There's a reliance on data and computers," said Scott Hickman, senior information technology consultant, Baird Kurtz and Dobson. |ret||ret||tab|

"Businesses are living and dying by their computer systems. Ten years ago if it went down for a day and a half, it wasn't a big deal, not an emergency."|ret||ret||tab|

Another issue is familiarity. Clients may want to consider their accounting firm as a technology consultant "because they already have a relationship with us," said Jennie Hart, marketing director, Whitlock Selim & Keehn LLP.|ret||ret||tab|

The reputation of the accounting profession is also a selling point. "The public has grown to trust the CPA profession and to understand that this profession is known for reliability, integrity, and outstanding customer service," Ellison said. "At KPM Technology, our primary objective is to provide a service to our clients as opposed to most straight computer sales operations that sell and service computers."|ret||ret||tab|

Consulting services are available for large businesses and small. Typical needs range from help with selecting accounting software to setting up a single PC and peripherals to creating a vast network.|ret||ret||tab|

For a client seeking a good technology consultant, there are key issues to address. |ret||ret||tab|

"Just because someone might know how to build a computer or how to install a simple network, it doesn't follow that they can install a wide area network with multiple stations and multiple locations," Ellison said.|ret||ret||tab|

"I would ask about formal training in such things as project management, certifications, technical training, and industry and business experience," said Brian Rigsby, senior manager of the Technology Solutions Group, a division of Whitlock Selim & Keehn LLP. He also recommended getting resumes and a client referral list complete with solutions presented to those clients.|ret||ret||tab|

Consulting services are individualized by client, but the process does follow a general pattern.|ret||ret||tab|

"Typically, it starts with one or two informal meetings between consultants and business management," Rigsby said. "Consultants learn about the business's past, present and future direction." |ret||ret||tab|

And while the consultants learn about the business's strategies, enablers, organization structure and major issues, the business learns about the consultants, their organization, background and experience.|ret||ret||tab|

Next, "the consultant researches the industry, the particular issue the business faces, draws upon their background and experience, then develops a proposal. |ret||ret||tab|

"The proposal identifies their understanding of the issues and needs, the objective to accomplish, the scope of the engagement, the approach to take to solve the problem, the staffing, who the parties are and their qualifications. The proposal ends with the estimated time and professional fees," Rigsby said.|ret||ret||tab|

Finally, the proposal is given to the client, who reviews it and asks questions. If the business accepts the proposal, it signs off and the plan is initiated. |ret||ret||tab|

"There are no fees until this point. The clock doesn't start ticking when you make a call, only after signing off," Rigsby said. "The client's only investment is their personal time until they've agreed to the scope of the initiative and the value provided."|ret||ret||tab|

The continuing, fast-paced evolution of computers, software and e-commerce are likely to keep CPA firms and their technology operations busy. And with a new issue on the horizon taxation of Internet sales CPAs' services on all levels may soon be in even greater demand. |ret||ret||tab|

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