Author page: Xienan Shaw

When Donny Shimamoto, CPA/CITP, CGMA, talks about technology, the people listening to him often think he’s speaking about the future.

“People keep thinking, ‘This is all future stuff, this is all future stuff,’” said Shimamoto, founder and managing director of IntrapriseTechKnowlogies LLC, a CPA firm that helps small and midsize organizations leverage technology.

“When we get to AI and robotics, yes, some of it might be more futuristic. But there’s quite a bit of it that’s already here.

“It never fails to amaze me why people aren’t leveraging what we have now.”

On Wednesday, Shimamoto teamed with sole tax practitioner Dan Moore, CPA, at AICPA ENGAGE 2019 in Las Vegas to address how emerging technologies are enhancing tax practices. In their session, Shimamoto and Moore said that while artificial intelligence (AI) represents a quantum technological leap, firms of all sizes can prepare today with smaller jumps in technology and management philosophy.

Technologies of today

The first step in leveraging technology today is to understand what’s available and how it’s changing the business. Here’s are six areas tax practitioners should consider:

The paperless office. This is the baseline of technological change: Firms have been working for decades to digitize their documents and processes. “Some people are working dynamically with the information in its electronic format. Some people are working with paper returns,” Moore said. Small firms in particular have been slow to abandon paper, especially because so many clients still submit physical tax documents.

Cloud and collaboration tools. Digital documents now can be shared and manipulated more seamlessly. Online document management portals allow clients and colleagues to quickly exchange and organize documents. Other digital platforms allow easier comment review, invoicing, and payment. Cloud software allows for anytime, anywhere access to data and applications, reducing the need for in-house hardware.



Moore has transitioned some of his services — such as document management and QuickBooks integrations — to cloud services that allow 24/7, on-demand data exchange with clients. “That makes things so much more seamless than getting a backup of their QuickBooks file,” he said. Still, he hasn’t converted the firm’s central tax-preparation work to a cloud product, in part because he’s considering contingency plans for a disruption of internet or cloud services.

Client communication tools. As communication channels multiply, it’s becoming more difficult to get clients’ attention when further information is required. Phone calls go unanswered, and voicemails are ignored. Firms need to look to newer platforms, such as desktop communications software with text messaging options like Slack, Skype for Business, or Microsoft Teams. Alternatively, Moore recommends the Liscio messaging platform, which was designed with CPAs in mind and uses a smartphone app.

Tax outsourcing. Digital platforms make it easier to collaborate with contractors — including, for example, the growing number of knowledge workers in India. Firms that master offshoring could find relief from tight labor markets and rising labor costs, but offshoring comes with new management challenges and isn’t yet widespread among small firms, Moore said.



“It takes a special type of personality to do that because you’re giving up control,” he said. But Shimamoto sees it as an inevitability. “Because [the cloud] makes our system more accessible, we can then leverage the best talent, wherever they have to be,” Shimamoto said.

Visualization. Data visualization tools, such as dashboards, maps, and interactive charts, have become commonplace. Options range from Excel tools such as Power Map to more specialized software like Tableau and Microsoft Power BI. “[Visualization is] getting easier, so you’re seeing it in more and more places,” Shimamoto said. That’s good, because as Moore pointed out, clients are increasingly looking for visualization options.

Automation. Simple methods of automation are broadly available. It’s now commonplace to use scan-and-fill technology to extract digital information from paper documents. Some firms are using robotic process automation (RPA) software that can automatically click through software interfaces to translate information between programs. In the long run, RPA could take over most basic data-entry services, according to Shimamoto.

Taken together, the six areas point to a tax practice marketplace where automation and outsourcing capture an increasing share of routine work tasks.

“In today’s world, you’re either going to automate it, meaning you’re going to use technology, or you’re going to outsource it to a cheaper labor market,” Shimamoto said. “And this is again, all these lower-end, menial, repetitive tasks.”

The tasks most likely to be automated or outsourced are repetitive and simple. That means the firms of the future will be competing on the ability to manage automation/outsourcing and deliver specialized products or meaningful insight.

How to prepare

How can firms embrace emerging technology tools? Some are tempted to pursue every option — the more tech, the better. But Shimamoto urges a business-first approach.

“Make sure that you’re not starting with the technology. What you really should be doing is figuring, ‘Where do I have a problem in my firm, and what really is the problem?’” he said.

The answer will be different for each firm, but some significant overarching trends are emerging. The most important of these is that new technology will reward the companies that are best organized.

“It’s not so much of a skill set as a maturity,” Shimamoto said. “To really be able to leverage outsourced services, you need a higher maturity in those processes and the management and the flow of your data.”

When a firm completes work in the office, it’s easier to take an ad hoc approach. Employees use their institutional and personal knowledge to complete processes and deal with aberrations. That changes when a firm needs to export the work, whether it’s to offshore workers or to AI. In both cases, structure helps.

For example, a sole proprietor might need a checklist of just four or five steps to document a process for herself. To teach it to an inexperienced colleague might take 15 steps. But conveying it to a worker outside the company — especially when there are language barriers — could require a 60-step plan, Shimamoto said.

A company with more uniform, documented processes also can capture more granular data — which is exactly what AI will need to thrive. Therefore, the company with the best-documented processes today will be best prepared to take advantage of new technology tomorrow.

Training for tech

Whether you’re thinking of the present or the future, consider these focuses for employee recruitment and training:

• Process analysis. Employees who are versed in project and process management will be able to incorporate new technology into the workflow.
  
• Data analysis. Analyzing the underlying data through current and emerging software tools — whether it’s Excel, a programming language, or a machine-learning tool — will allow employees to improve processes and see where technology fits. It also allows them to deliver more meaningful insights that can’t be automated.
  
• Communication. Tax CPAs will need to figure out how to best communicate insights in a way that’s meaningful to clients.
  

More than anything, companies must prepare their employees to be deeply knowledgeable but broadly adaptable.

“Say you’ve got a technology disruptor that says, ‘This part [of your business process] is all invalid.’ Can you actually adjust those processes?” Shimamoto said. “Or let’s say it’s actually an enhancer. Do you have enough understanding to take advantage of it?”

For Moore, it’s a question of whether new hires can truly grasp how data are flowing through the organization. But, beyond the technical skills, he also thinks that accountants can future-proof their work by providing the human guidance that their clients need.

“That’s a great need that will continue,” he said, “whether or not we can get more of their tax return automated.”

Let’s get something straight before we go any further: teams always beat groups of individuals. Want to accomplish the impossible? Build a team. Looking to turn around a hopeless situation? Fire up a team. Trying to launch a new-to-the-world idea? Yep, you guessed it, a team is what you need. Turning a startup into a success only happens with hard work, determination and a team. Yet, somewhere along the journey between sketching out the world-beater idea on a napkin and turning that idea into reality, many entrepreneurs lose sight of the fundamentals that will bring them to the promised land of viability and profitability.

I call these principles the Unstoppable Team Fundamentals because if you’re truly in it to win it then you need an unstoppable mindset for you and your teammates. I’ve learned these leadership fundamentals the hard way — through multiple failures and a few remarkable successes that span my life’s journey from leading Navy SEAL platoons to founding Perfect Fitness, my company that makes Perfect Pushup and other revolutionary fitness devices.

In fact, these fundamentals apply regardless of your industry, business structure or startup focus. Disregard them at your own potential peril; heed them and you’ll discover that your greatest challenge will be dreaming up bigger entrepreneurial mountains for your teams to climb.

1. Use the “swim buddy” system

The single most important team in SEAL Team is the swim buddy; it’s also the smallest team. All SEAL teams are developed from the swim buddy system. Two swim pairs form a fire team, two fire teams form a squad and two squads form a platoon. (The names have changed slightly with the term “platoon” replaced with squadron but the basic premise remains.) The same holds true in the civilian world whether you’re just starting out, rebuilding or rebranding — it’s all about pairing people up. The goal of swim buddies is three-fold:

1. Pair an experienced person with an inexperienced member to rapidly close the learning gap. The faster you close the experience gap the stronger you make the “weakest” link of your team (the one with the least amount of experience).

2. Team up complementary skill sets to problem solve faster than individuals working alone in silos.

3. Bring together diverse backgrounds (i.e. diversity of thought) to spark creativity and overcome negativity within your organization.

Swim buddies aren’t forever — rotate people through the pairing up process and not only will they solve problems faster and more effectively they will also develop the critical bonds of trust needed to galvanize individuals into a selfless focused winning machine — an Unstoppable Team.

2. Model the way you want your team to perform

Understanding and articulating your company’s “why” is fundamentally important, but the “how” behind how you and your team execute drives your organization’s culture and ultimately, it’s brand. Your company’s brand is nothing more than a reflection of your culture, and culture is a reflection of your teammates’ actions…and guess where your teams’ reflection comes from? It comes right from the leader: you. No detail is too small when modeling the way for the organization you strive to build. Make no mistake, your actions are under a microscope.

What you do gets emulated not just internally but externally to your customers. J. Willard Marriott developed a simple rule to live by when he founded his company 92 years ago: “Take care of associates and they’ll take care of your customers.” That simple philosophy remains at the heart of Marriott’s leadership focus today (Marriott’s HR policy is called “Take Care”). You might think because you’re the inventor, creator or founder of the company, you can operate differently than others. Wrong! Products will come and go, but the single hardest thing to build and the easiest thing to lose is a winning culture focused on caring for each other, customers, contributors and the communities in which you operate. As the leader, always model the way in which you expect others to emulate.

3. Caring leads to daring

One of the greatest challenges of team building is getting people to relinquish their selfish ego-driven desire for personal gain and replace it with a selfless drive to help the team flourish. Legendary coach John Wooden said, “It’s amazing how much can be accomplished if no one cares who gets the credit.” The only way to help people transform from selfishness to selflessness is by showing how much you care for them. The goal is getting them to forget about worrying about their own “backs” and, instead, keeping them focused on caring for each other and the team goals. It takes time, transparency, consistency and thoughtfulness to prove to others that you have their “backs,” but when you succeed at proving to them how much you care about them, then they will start proving how much they will dare for you. Caring leads to daring. Seek ways to connect with your teammates — to understand their challenges and pressures not only during the work day but also in their personal lives. People are not robots, they have emotions which drive their behaviors. Unstoppable Teams are powered by care.

4. Hire for culture first

I don’t care how smart someone is — if they are a jerk or have some kind of caustic attitude they will become a liability in your team building process. When hiring people you want to look for what Eric Schmidt in Trillion Dollar Coach refers to as “smarts and hearts.” Seek competency and compassion that are a cultural fit for the “why” and the “how” of the organization you are building. You want diversity of thought but not diversity of heart. Make cultural fit a top priority when selecting people to join you on your entrepreneurial journey. There is hard evidence supporting the soft arts of emotional intelligence, and while you’re contemplating who to hire, know that women are instinctively better at building caring relationships. They typically have higher levels of oxytocin — the caring/nurturing hormone — then men do. If your team doesn’t have women on it, it may not be as unstoppable as it could be!

Team building is an imperfect science — it’s messy and at times frustrating but so incredibly worth it. We are all imperfect. We need each other, and how we form those bonds directly impacts how well we will succeed together. We are much more powerful together than we are standing alone. So, leaders, this is a call to step up, give it all you have and don’t you dare give up on going all-in every day…because that’s exactly what you need your team to do too as well: Go All-In All the Time.

Now go build an Unstoppable Team and make greatness happen!

There is no denying the fact that modern day managers encounter mammoth challenges in their attempt to achieve organisational objectives.

These challenges are varied in and complex in nature. Consequently, it is important to identify the challenges so as to enable managers and chief executives understand art and science underlying managerial practices, especially as it relates to managing challenges.

The business environment is dynamic. The dynamism is seen as it relates market demand; technology, productivity, social responsibility, the use of modern and efficient communication system, the use of facilities external to organisations, the management of human resources and so on.

As a result of these ever present changing conditions and variables, orthodox and atavistic management methods may be thus grossly inadequate to meet the new challenges. This means that managers should thoroughly examine their existing facilities, policies, strategies and procedures and see where they are obsolete and call foe updating or are deficient and require urgent attention. In the process of examination and review of objectives, managers will identify limiting factors to achieving the set objectives of the organisation.

Management of Human Resource

The resources of every organisation includes among other things, physical, financial, time, information as well as human. However, among all these resources, the human element is the most important. It is the only animate resource. That is the reason the most critical and challenge of the modern day managers is the human problems. Most often, human resources challenges have been described as embarrassing and intractable.

There are many organisational problems that can be associated with human beings. These includes personality conflicts, which manifest in squabbles and serious quarrels, emotional and behavioral problems. Other human problems which can be manifested in other way includes the sudden change from cooperativeness and friendliness to inexplicable antagonism, hostility and dependency on alcohol and drugs for coping with the ordinary challenges of work and life. These problems do affect an individual’s work experience and effectiveness and consumes a greater part of the manager’s time.

Technological Development

Akin to the challenges of human resource is the one of technological development. Technology is the application of scientific principles to industrial problems while the improvement in machines, methods, materials, management and so on that results from this is refereed to as technological progress.

Thus a technological challenges arises when the manager is unable to cope with some technological innovations that enhance modes of doing thins in the business environment. Related to technology but most challenging is the use of modern communication systems. The use of modern communications system is one of the major challenges which managers today face. Although telecommunication system has improved in some countries, there still appear to be problems. Managers will have to find a way to solve their communication problem in order to efficiently and effectively achieve their organisation objectives.

Customer Relations and Service

The customer is the essence of the existence of any company. However, in a country like Nigeria, especially in the area of marketing there is the lack of appreciation, all round, of the importance or supremacy of the customer. This is due mainly to a combination of factors namely; the level of awareness and the level of education in the society, the fact the customer is not aware of his rights (consumerism is still emerging) and lastly the sellers market situation prevalent in the society.

People who are paid to give a service always give the impression that they are doing the purchaser of that service a favor by serving him. Be they managers, civil servants, bank staff, shop assistants, the attitude is the same. There is thus much to be done in absorbing the culture of social responsiveness among business leaders and managers.

Designing Creative Environment

It is still problematic and challenging for modern managers to design and maintain environment for creativity and innovation. This challenge is internally and externally induced. In the external analysis, in some developing countries it does not seem that the government is interested in the reduction of unemployment but not the creation of employment opportunities. So for the modern day managers grappling with the problem of inadequate infrastructure, government insensitivity in terms of creating investment friendly environment opens yet another challenge.

Internally, perhaps, there are in many firms too much conformity, too much togetherness and too much little individual responsibility and opportunity. However, it can never be forgotten that all group activities at any kind require some conformity towards the accomplishment of group goals. But this does not mean that intelligent managers cannot design roles for innovation and imagination where they are desired, while still maintaining needed conformity to make group cooperation effective. This is not easy but it is possible/ particularly for managers who are mindful of their basic task of designing for creativity and performance.

Social Responsibility

One of the challenges facing many managers today is the fulfillment of business social responsibility. The is more urgent than before because of the utter neglect of the communities in which many firms operate. Social responsibility demands somewhat that businesses provide, housing, transportation, health facilities, building of schools, award scholarships, donation of disaster affected areas, promotion of aesthetics, provision of culturally enriching and entertaining programmes on television and the like. Even the supply of high quality products to the market cannot be omitted in the areas of business social responsibilities. 

Maintain Flexibility to Meet Change

Another major challenge facing most modern managers is that of maintaining flexibility. Effective management is flexible management. Not only must effective managers be able to recognize the need for change but also in order to have time to meet it. they need to design methods of obtaining an organisational change in such areas as unproductive procedures and policies, obsolete organisational pattern and the normal human tendency to resist change.

Government Policy

Inconsistent government policies create an unstable environment for every manager. Many sectoral policies are made with reference to the operation of that sector. Every now and then representatives of sectors are crying out asking the government to rescind certain policies. In many instances such inconsistencies have caused national strikes. It distorts perspective planning as well as distracts forecasting focus of managers.

Conclusion

With the current state of competition orchestrated by globalization and liberation, businesses will need to invest more effort in the area of qualified human resource and technology if they are to achieve their goals and objectives and satisfy the needs of the public which are also multiplying.