2023 Life Sciences Industry Accounting Guide Deloitte US

accounting issues for technology companies

And while accounting has traditionally been considered a numbers-only profession focused on historical data, technology and transformation have repositioned accounting at the center of strategic decision-making and value creation. For example, accounting leaders are playing a critical role in driving an organization’s environmental, social, and governance (ESG) strategy by leveraging technology to analyze data, surface insights, and influence ESG investment decisions. Financial statements contain critical information about a company’s financial position, cash flows, and results of operations. The challenge is that, despite how carefully statements may be prepared, financial reporting errors can happen. For accounting professionals, payroll services have long been viewed as a time-consuming, high-risk loss leader. There’s no doubt that without the right technologies in place, payroll errors can be a real concern.

May 17Austin, Texas-based tech company Accenture PLC will slash nearly 550 positions, according to a WARN notice, cutting its workforce of roughly 5,900 by nearly 10%, the Austin American-Statesman reported. June 29CEO John Hanke said in an internal memo the cuts at Niantic, the maker of Pokemon GO, will affect 230 of the California-based company’s employees as it closes its Los Angeles studio, adding the company has “allowed our expenses to grow faster than revenue,” after a boom in business during the Covid-19 pandemic. July 20FibroGen, a startup that develops cancer and anemia treatments, announced plans in a SEC filing to slash 32% of its staff, affecting 104 employees, telling SFGATE the cuts affect its U.S. employees and will take effect through the first three months of 2024.

When to use ASC 985-20 and ASC 350-40 in capitalizing software development costs

Mr. Biden acknowledged that another element of his strategy is to slow China’s advances. He specifically referred to new regulations — bolstered two weeks ago — to deny Beijing access to the most powerful computer chips needed to produce so-called large language models, the mass of information on which artificial intelligence systems are trained. Eighty-three percent of professionals intending to leave their jobs in the next six months did not accounting for technology companies expect to advance at their current company. And 75% of those who intend on leaving the profession within the same time period felt the same. “The accounting and finance profession is facing significant barriers to retaining talent, but this study provides us with insights into key factors contributing to the job turnover,” Susie Duong, senior director of research and thought leadership at IMA and co-author of the study, said in a statement.

October 6Supply chain management company Flexport is looking to cut 30% of its workforce next month, according to a person familiar with the layoffs who spoke with the Wall Street Journal, marking a major reduction that would affect just over 1,000 of its more than 3,500 employees, according to data from PitchBook. October 19Finnish communications giant Nokia’s layoffs are aimed at reducing its workforce from 86,000 global employees to between 72,000 and 77,000, representing an elimination of as many as 14,000 jobs, according to a company statement—Nokia employs roughly 10,500 people in North America (just over 12% of its workforce). While businesses often chafe at new federal regulation, executives at companies like Microsoft, Google, OpenAI and Meta have all said that they fully expect the United States to regulate the technology — and some executives, surprisingly, have seemed a bit relieved. Companies say they are worried about corporate liability if the more powerful systems they use are abused. And they are hoping that putting a government imprimatur on some of their A.I.-based products may alleviate concerns among consumers. And brand building is paramount, notes Steve Saah, executive director of finance and accounting–permanent placement at Robert Half.

How is an audit for a technology company different to an audit for other types of businesses?

Accounting professionals face a host of challenges in today’s complex business environment. Keeping up can seem daunting, but the good news is that firms don’t have to go it alone. A comprehensive software solution like CS Professional Suite can address multiple areas of your firm, from payroll to firm management to client portals. Amid inflation and lasting economic impacts of the pandemic, companies are especially concerned about the financial health of their business.

accounting issues for technology companies

Here are some of the biggest technology changes that are currently faced by the accounting industry — and what you can do about it. Investing in or otherwise being in the business of selling or using digital assets may present technology entities with a host of opportunities but also unique accounting challenges. Tech companies often acquire startups or other businesses, leading to challenges in valuing the acquired entities fairly. Determining the fair value of intangible assets, liabilities, and goodwill can significantly impact the developing company’s financial position. April 27Rideshare company Lyft unveiled plans to slash nearly 1,100 positions in a SEC filing, just weeks after confirming a round of layoffs in a blog post and nearly six months after 700 people were laid off from the company.

Technology industry accounting: Guidance for the latest accounting and reporting issues

October 25Amgen’s layoffs will start at the end of December and target 350 employees who had been working at Horizon Therapeutics (less than than 20% of Horizon’s workforce), primarily affecting roles in which Amgen and Horizon overlapped, the company confirmed to Forbes. OpenSea will reportedly cut half its staff in the NFT marketplace’s latest round of layoffs. The order is an effort by the president to demonstrate that the United States, considered the leading power in fast-moving artificial intelligence technology, will also take the lead in its regulation. Already, Europe is moving ahead with rules of its own, and Vice President Kamala Harris is traveling to Britain this week to represent the United States at an international conference organized by that country’s prime minister, Rishi Sunak. The latest EY CEO Outlook Pulse survey released this morning is based on the viewpoints of 1,200 global CEOs.

From a tax research standpoint, look for accounting technology that includes access to thoroughly integrated and up-to-date tax research materials, editorial insight, productivity tools, online learning, and news updates. With that ability to quickly access trusted answers, you can help clients make confident decisions quickly. For accounting firms in particular, the automation of day-to-day accounting activities can not only save time and increase revenue but can also boost staff engagement levels. In an increasingly complex and interconnected business environment, C-suite leaders recognize that real-time, data-driven decision-making is more important than ever.

Technology is changing nearly every industry, but few as significantly as the accounting field.

IPO and SPAC activity may be lower, but accurate financial reporting for the life sciences industry is as important as ever. Over the past decade, technology has driven a profound shift in the way accountants work. From tax workflow automation and tax strategy to data analytics, CPAs who embrace accounting technology trends are well-positioned to thrive long term.

Foley Expands Innovative Technology Sector and Government … – Foley & Lardner LLP

Foley Expands Innovative Technology Sector and Government ….

Posted: Mon, 06 Nov 2023 13:58:32 GMT [source]

With tax automation technology backed by artificial intelligence and machine learning, today’s accountants are saving time, boosting accuracy, and optimizing tax workflow. Entities are increasingly incurring software development costs, whether it’s to incorporate emerging technologies like AI or Internet of Things (IoT) into their offerings or to implement and deploy a finance transformation project. Deloitte can help you stay abreast of these changes, respond to continuous developments in the technology industry, and assist with navigating the appropriate accounting guidance. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee (“DTTL”), its network of member firms, and their related entities. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the “Deloitte” name in the United States and their respective affiliates.

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