E-commerce emerges as profit center for CPAs

A new profit center is emerging for public accounting firms courtesy of the Internet, according to a recent survey by RHI Management Resources.

In the survey, 39 percent of chief financial officers polled nationwide said they believe services related to electronic commerce will be the biggest growth area for CPA firms over the next five years, according to a release from RHI. Financial systems consulting ranked second, cited by 20 percent of finance executives.

The survey was developed by RHI Management Resources, a consulting firm providing senior-level accounting and finance professionals on a project basis.

It was conducted by an independent research firm and includes responses from 1,400 CFOs from a stratified random sample of companies with more than 20 employees.

CFOs were asked, "Which one of the following areas of public accounting will expand the most in the next five years?"

Their responses:

E-commerce: 39 percent

Financial systems consulting: 20 percent

Management advisory services: 18 percent

Outsourcing: 10 percent

Global/international expansion: 8 percent

Other: 1 percent

Don't know/no response: 4 percent

"CPA practices are offering expertise in areas ranging from identifying the potential return on investment of conducting business online to developing the infrastructure for electronic commerce and integrating back-office operations," said Cecil Gregg, executive director of RHI Management Resources, in the release.

Gregg noted that systems consulting is another lucrative area for CPA firms. "As companies continue to invest in technology upgrades, they are relying on accounting professionals for guidance in selecting software and hardware, as well as improving efficiencies in such functions as costing, analysis and inventory."