How Does Chilliwack, BC Accounting Offices Remain GAAP and CPA Canada Compliant?
We all know that GAAP is the framework of instructions, protocols, rules, and procedures of Canadian accounting. Not to mention, staying compliant with the Income Tax Act, Excise Tax Act, Provisional Sales Taxes, Quebec Laws, and Professional Limitation laws.
Those are your industry tools, for fair business practices, honest and accurate calculating, and adhering to governmental laws and regulations. They and Chartered Professional Accountants of Canada (CPA Canada) are put in place to protect all accounting firms, large or small, and your client’s personal and businesses tax liabilities, while keeping you in good standing throughout Canada.
But, Is Your Firm’s IT Network Infrastructure Compliant With The New Accounting Technologies?
Along with accounting compliance, your technology also falls under specific regulatory agreements and regulations. Similar to the Canadian Goods and Services Tax (GST) changes every year, your technology updates or changes annually.
In 2018, accounting work, across the board got redefined by five cutting-edge technologies. However, some of the smaller accounting firms discovered the technology changes were significant; they were not sure their IT Network Infrastructure was stable. They had to call in companies like Chilliwack’s IT Support and Computer Services company, u networks for IT Services and to determine if they had the needed stability for the new technologies listed.
- Cloud Accounting – Accounting software, hosted in the Cloud, the company’s user and accounting firm have complete access to the data directly. All that’s required, by either party, is a computer, internet connection, and the correct password. Before this advancement, the user downloaded their company file, from the accounting software, and email it to their accountant.
- Integrations – Put simply, it makes workflows easier. Integration has become the next step up with tailor designed accounting software. Paperless tools, in these four areas, are now standard with accounting software:
- Payroll Management Tools – Gusto and Wagepoint
- Payment Processing Management Tools – PayPal, Stripe, and Square
- Invoicing and Time-Tracking Management Tools – Harvest, Temponia, and TSheets
- Expense Reports Management Tools – Expensify, Shoeboxed, and Receipt Bank
- Digital Currency – Also known as “cryptocurrencies.” A form of stateless fiat money, buyers and sellers can send a digital store of value, to each other. Similar to sending a text. The Canada Revenue Agency or (CRA), with great interest, are continuously tracking growth with all digital monies. Also, all digital currencies are regulated and subject to the barter rules of the Income Tax Act.
- Blockchain – A digital ledger chronologically records transactions publicly, made in bitcoin or another cryptocurrency. However, their essential qualities provide a broader application. Blockchains are:
- cryptographically secure
- impossible to alter retroactively
- at all times, all parties, have a detailed record of all confirmed transactions
- Machine Learning – A section and branch of Artificial Intelligence. It uses algorithms, statistics, and massive data sets to find and uncover patterns. The machine will determine whether an item does or does not conform. When reviewing expense policies, categorization and validation are now more useful. When an accountant has a large set of valid expenses, an algorithm can be programmed to predict whether an additional cost is legitimate or not and do it with a high degree of accuracy. Another benefit for the accountant is spotting subtle anomalies among ordinary transactions, such as fraudulent activity.
Is It Time For An IT Audit?
If you are wondering, and asking yourself “What is an IT audit?”; that is when you call in an IT Services company like u networks. They examine and evaluate your accounting firm’s information technology infrastructure, policies, and operations. The IT auditor uses the GAAS auditing standards and guidelines issued by the Information Systems Audit and Control Association (ISACA).
The process is used to improve your IT guidelines, systems, and controls. What the audit will show you are your accounting office’s communication systems and “controls. You’ll find out if your firm is rated as “adequate,” “functional” and conforms to industry practices.
Let’s take a look at “control,” “adequate,” and “functional.”
- A “control” is a set of specific instructions that top management puts into place to prevent risks of loss due to a technological malfunction
- A control is “adequate” when it lists the steps an employee must follow to perform tasks, report problems and make decisions.
- A “functional” control provides suitable explanations for information technology (IT) problems.
The IT auditing will also review your accounting office’s computer systems and software. That guarantees your company has the latest updates installed, virus protection mechanisms are current, and any manufacturers’ licenses are up to date. The IT auditor will also point out needed improvements in the company’s data backup systems and recovery planning areas.
Like this article? Check out, How Can I Best Protect My Business Entity From Current Hacker Potentials? And Finding The Right Managed Services Provider (Questions/Answers) or Computer Tech Support for Accounting Firms in Chilliwack BC (Questions & Answers) and discover more.