Targeting Technology Field ?Natural? for Accountants

Branching into the world of technology support and consulting is a natural progression for accounting firms, said Gene Scott, a partner with Jeffrey Phillips Mosley & Scott PA in Little Rock.

“Technology is taking the place of a lot of the things that we do, and we have to be more business consultants and less accounting people,” Scott said.

Managers in today’s business environment need to have information as soon as possible, he said.

“They need to be able to make management decisions quickly, and they need to have accurate data,” Scott said. “That’s really what we’re moving into, actually helping them better manage their businesses rather than give them an accounting of what their business has done over the last month.”

About three years ago, Scott’s firm started a separate technology company to meet the demands of its customers.

“We have gone through a lot of trial and error to figure out what the customer is looking for and what services best integrate with our accounting services,” he said.

Jeffrey Phillips Mosley & Scott restructured its technology company and changed its name. About two months ago it unveiled Edasio Technologies, which offers network installation, systems engineering and custom development.

Edasio also develops interactive Web sites to automate inventory control and ordering for online purchases.

Scott said Edasio Technologies should see between $1 million and $1.5 million in revenue this year.

Edasio has seven employees, but Scott said that number could expand to 10-12.

Edasio’s fees vary for the work done, but if the work is for a technology project, it could run between $80-$100 an hour. If the work calls for accountants, it could range from $50-$170.

Burris Miller & Co., a Little Rock CPA firm, also has its own company for technology support.

About four years ago, Burris Miller noticed that clients were buying accounting software but didn’t have the training or technical support to receive the maximum benefit out of it, said Mike Miller, managing partner of Burris Miller.

Burris Miller then formed Computer Plus Accounting Solutions Inc., which mixed account and technology support to help its clients.

In April, Computer Plus broadened its focus and changed its name to Veritas Information Technology Inc.

The company now offers its services to nursing homes and medical groups.

In addition to offering technical support, Veritas can rely on Burris Miller for accounting questions.

But if a Veritas customer has an accountant already, it will work with its client’s accountant, said Miller, who is also president of Veritas.

“We’re not out trying to take anybody’s business away from them,” Miller said. “We’re just trying to make sure that whoever purchases the software gets it installed and we can provide to them the total benefit that is expected to be received out of the package.”

Veritas has three technicians, but it could increase to five. The average price range for services is between $10,000-$30,000.

William MaGee, a partner with the Little Rock office of BKD LLP, agreed that the trend is for accounting firms to enter into the technology sector.

“Any time you can use technology to improve data flow and provide additional information with which management can make decisions, you’ve increased profitability,” MaGee said.

BKD has its own tech division, BKD Technologies. Many CPA firms try to enter into the technology sector by acquiring technology firms, MaGee said.

Although that could be successful, the CPA firms that are going to be the most successful are the ones that hire their own technology-trained employees, he said.