Recognizing that the accounting profession is due for disruption, the Association of International Certified Professional Accountants and CPA.com launched an initiative to jumpstart the transformation.

As many as five early-stage companies will get a major boost over the next year, thanks to a new startup initiative designed to drive innovation in accounting technology.

The Association of International Certified Professional Accountants and CPA.com Startup Accelerator will award up to $20,000 to finalists selected by AICPA and CPA.com executives after a round of live product pitches. Winners will also receive coaching from industry experts and the opportunity to showcase their products at AICPA’s Engage 2018 conference next June.

“It’s like Shark Tank for companies serving the accounting profession,” CPA.com CEO and President Erik Asgeirsson said in a statement.

But not just any company can apply. According to entry guidelines, the startup accelerator seeks pre-Series A companies that address one of two themes: professional competency or technology and financial information. Products in the latter category would include advancements in artificial intelligence, solutions that automate routine accounting tasks, and any other tool or application that helps accountants and financial teams “shift their focus more to value-add work rather than routine tasks.”

KEEPING AN EYE ON THE HORIZON

The desire to find innovative ways to serve clients comes as a response to the changing accounting landscape.

“It’s no secret that the accounting profession of the future will look radically different than it does today,” the startup accelerator’s entry page states. “We’re already being challenged to adapt and evolve to global trends and practices, such as the increasing complexity of regulatory compliance, task automation, artificial intelligence, blockchain, and the internet of things.”

Many in the accounting profession say embracing these changes is essential to riding the wave of digital disruption in finance. According to a statement from Lawson Carmichael, AICPA’s executive vice president for strategy, people, and innovation, the initiative allows the association and CPA.com to do just that: “For us, the startup accelerator offers a chance to ‘see around corners’ and take a more long-range view of opportunities in business transformation and innovation.”

Startups must apply by October 5.

The American Institute of CPAs and its technology-focused subsidiary CPA.com are jointly sponsoring an accelerator for companies that have potential to have significant impact on the accounting profession.

The initiative was announced at the 2017 AICPA Engage conference by Barry Melancon, president and CEO of the American Institute of CPAs. The aim of the initiative is to give the profession an early look at potentially disruptive technologies and services in finance and business.

Initially, the startup accelerator plans to support up to five early-stage companies over the next year. The companies should focus on either technology and financial information, which could include AI, automation or blockchain; of professional competency innovation, which includes focus on machine learning to personalize professional education, collaboration tools for mentors and experts, and improvements in measuring professional competency, among other categories.

“The Association and CPA.com have a deep base of knowledge and resources to offer entrepreneurs looking to find a foothold in the accounting ecosystem,” said Lawson Carmichael, the Association’s executive vice president for strategy, people and innovation, in a statement. “And for us, the startup accelerator offers a chance to ‘see around corners’ and take a more long-range view of opportunities in business transformation and innovation. There’s a compelling business case for collaboration.”

The accelerator will offer up for $20,000 in funding to each finalist, provide access to experts and mentors, and a spot to showcase their product or service at next year’s AICPA Engage conference with the opportunity for more long-term partnerships within the profession.

Ellison-Taylor and Melancon at Engage 2017
AICPA

Interested startups should be pre-Series A funding, although the associations will allow for some exceptions. Pre-revenue companies will be considered based on their development progress and business plan. Candidates will be expected to pitch their products or services this Fall.

For more information on the accelerator, click here.

The Association of International Certified Professional Accountants and CPA.com, the American Institute of CPAs’ technology subsidiary, announced Tuesday that they are launching an initiative to provide funding and support to early-stage companies developing innovative technologies for the accounting profession.

The Association and CPA.com Startup Accelerator will seek to support as many as five early-stage companies during the next year. The focus will be on startups in two key areas:

• Technology and financial information, which could include advances in artificial intelligence, automation of routine tasks, and the application of blockchain/digital ledgers; and
• Professional competency innovation, which could encompass machine learning to personalize professional education, collaboration tools for mentors and experts, and improvements in measuring professional competency, among other categories.

“The Association and CPA.com have a deep base of knowledge and resources to offer entrepreneurs looking to find a foothold in the accounting ecosystem,” Lawson Carmichael, the Association’s executive vice president for strategy, people, and innovation, said in a news release. “And for us, the startup accelerator offers a chance to ‘see around corners’ and take a more long-range view of opportunities in business transformation and innovation. There’s a compelling business case for collaboration.”

The startup accelerator will provide as many as five companies with up to $20,000 in funding and access to subject-matter experts, including an advisory panel of thought leaders in the accounting technology field available to provide coaching and mentoring on issues and opportunities unique to the profession. The funding will be subject to a commercial agreement that could take any number of forms, including using the funding to purchase equity in the startup or to assist with development of a product in which CPA.com and/or the Association would own part of the product’s intellectual property. Another possibility would be a channel agreement to provide access to the market.

Firms chosen for the accelerator initiative also would have the opportunity to showcase their product or service next June at AICPA ENGAGE 2018, one of the largest accounting-related events in the United States, and—with continued, successful development—the potential for longer-term, strategic relationships within the profession.

The main goals for the Association and CPA.com in launching the accelerator are to promote innovation and to give the accounting profession early insight into disruptive technologies and services in finance and business.

Applicants from all global markets are eligible to apply for one of the five accelerator spots. To qualify:

• Startups should be at a pre-Series A stage of financing, with some exceptions.
• The company must have a functioning product or service.
• Pre-revenue companies will be considered based on their development progress and business plan.
• Candidate companies must agree to pitch their product or service to Association and CPA.com executives this fall, after which up to five finalists will be selected.

“At CPA.com, we have been driving innovation for the past decade through our technology services, strategic partnerships, and training and education programs,” said Erik Asgeirsson, CPA.com’s president and CEO. “We’ve also been convening leading technology companies at our executive roundtables and other collaborative events, so the next logical step for us is to support earlier-stage activity with this Startup Accelerator. It’s like ‘Shark Tank’ for companies serving the accounting profession.”

Submissions by startups are due by Oct. 5. Interested companies that want more information can contact Greg LaFollette, a strategic adviser with CPA.com, at Greg.Lafollette@hq.cpa.com, or Mark Brooks, senior manager of innovation at the Association, at Mark.Brooks@aicpa-cima.com. To apply for consideration or learn more details about the Startup Accelerator, visit aicpaglobal.com/accelerator.

Time was when cybersecurity, efficiency, and even ability to adopt technology were top of mind for practitioners, but the situation with finding and retaining talent has reached a boiling point.

During a morning keynote address at the AICPA Engage conference this week, AICPA President Barry Melancon called out the serious issue for firms of all sizes, which also happened to be supported by one of their own recent surveys.

Each year the AICPA’s CPA Firm Top Issues Survey highlights, as advertised, what the top-of-mind issues are for all practices, from sole practitioners to the largest firms. For the first time ever, they were all in agreement that the flow of talent coming into the profession, and keeping what talent there is, is cause for concern.

“Accounting isn’t the problem, it’s attracting [students] to different pathways that stay connected to the profession,” said Melancon. “So we need to reach Gen Z at the high school level, as with high school honors courses in accounting. The pipeline is healthy ... your toughest competitor isn’t another CPA firm, it’s other industries with eyes on your clients.”

He went on to reiterate that competition for accounting talent may also stem from businesses that don’t yet exist.

Outside of that, Melancon and his co-presenter, AICPA Board Chairman Kimberly Ellison-Taylor, remained positive about the direction that the profession is moving and the talent pool that is already here.

“I will say this, we are each individually needed so that collectively we have a hugely significant impact on the shape of our profession and the future,” said Ellison-Taylor. Adding to that, Melancon stated, “We can really position our profession to be incredibly successful in this fast-paced, uncertain, complex, changing world.”

While Ellison-Taylor and Melancon did not cover every point in the survey, it was clear that many of the same concerns that have plagued practitioners for years continue to do so. For example, succession planning (or lack of one), busy season becoming increasingly, well, busy, and keeping pace with the complexity of the tax code were all top of mind.

See the breakdown of top issues by firm size here:

In addition, the AICPA and CPA.com took the time to let attendees know about yet another initiative to help support the profession and the changes they are dealing with in the current business environment. The latest effort comes in the form of the Association of International Certified Professional Accountants and CPA.com Startup Accelerator.

What this is, in essence, is funding to help support entrepreneurism and, in their words, “to accelerate the growth of early-stage companies that could have significant impact on the accounting profession. The goal is to promote innovation and give the profession early insight into disruptive technologies and services in finance and business.”

The startup accelerator will offer benefits to entrepreneurs in three ways:

• Provide up to $20,000 in funding per finalist.
• Access to subject-matter experts, including an advisory panel of thought leaders in the accounting technology field, who can provide coaching and mentoring on issues and opportunities unique to the profession.
• An opportunity to showcase their product or service next June at AICPA ENGAGE 2018, which will again be in Vegas.