Accountants Are Thriving on the Web, Says Survey

Almost two decades after the introduction of PC-based electronic spreadsheets, accountants' enthusiasm for technology continues to grow. The profession's focus has broadened, however, from stand-alone computing to the wide array of resources available on the Internet. As evidence of this latest trend, a new survey says accountants' use of the Web has soared in the last four years.

"Accountants now get more professional information from the Internet than from any other source," said Charles Ter Bush, a federal tax manager at CCH, Inc., which commissioned the survey, titled Accountants on the Internet 2000. "In contrast," he added, "the last time we conducted the survey—in 1996—accountants saw the Internet as a relatively experimental medium."

Almost all accountants (96%) have access to the Web, the survey found, as opposed to only 51% in 1996. More than half of the respondents also said they log on every day (see graph at bottom).

But is the Web's much-touted convenience the only reason for its popularity as an information source? Not according to survey participants, 85% of whom gave the information available on the Web high ratings for timeliness, relevance, accuracy and the reputability of its source. "They trust that information because it has proven to be reliable," Ter Bush said.

Respondents were more likely to access tax-related material, such as tax forms, the Internal Revenue Code, tax advice and state tax law, than any other type of online professional information. They obtained most of it from the Web sites of federal government agencies, state revenue agencies, professional associations and financial services providers.

Further, respondents said the Internet did more than just make it easier for them to do their jobs—it also served as a good source of information for career advancement. Almost two-thirds (65%) of women and close to half (47%) of men said the Web had created new opportunities for them.

Besides serving as an effective communications medium, the Web has become a consulting specialty for a growing number of firms, the survey found. More than one-fifth (22%) of firms have increased the number of their clients whose business is largely based on e-commerce. For these clients, firms provide not only technology-related services, but also traditional functions, such as general accounting, audit, tax and payroll. One-quarter of the respondents said that, although they found it challenging to integrate appropriate accounting practices into their clients' e-commerce processes, their most difficult task was mastering new online technologies.

Not only has accountants' use of the Internet grown rapidly, but there is little evidence of an impending slowdown. Nearly half the respondents (47%) said they expected their use of the Web for accounting or tax research would increase in the next year. And demand for less frequently used Web services, such as CPE and payroll services, may grow the most. For example, accountants' use of the Web to obtain CPE grew to 29% in 2000 from less than 1% in 1996.

Harris Interactive, an Internet-based market research firm, conducted the survey for CCH in June and July of 2000, polling 600 accountants, 400 of whom worked for accounting firms. The remainder were employees of corporations with $10 million or more in annual sales.