- March 16, 2013
- Posted by: Rayvat Accounting
- Category: Accounting
In era of cloud computing, remote operations, majority of the work would move from onsite to the virtual environment. This would also result in work being transferred cross border in order to gain from the cost advantages between eastern and western countries.
It has been almost a decade for the Information Technology work (like software development ,web development) has moved to virtual world leaving back the barriers of location.
It is beginning of a new era for cross border accountancy just like the Information Technology Sector.
However there are challenges for Accounting Sector which needs to be addressed. Some of them are:
a) Network security
Bringing the data on network can have increased risk of eavesdropping and compromising on confidentiality of client information
b) Knowledge expertise
Accountants have specialized knowledge of certain definite national laws and regulations.In order to go cross border new expertise has to be gained.
c) Legal requirements
SOX and other regulations have stringent requirements for Virtual Accounting services related work.
d) Professional and ethical conduct of accountants.
Local regulations of the CPA’s govern the professional and ethical conduct of the accountants.
e) Managing Cultural Diversities and knowledge of International Laws
There might be communication gap due to different cultures.