Category

Nonprofit

Jul 15
0

The Ever-Evolving Role of the CFO

By | Corporate Culture, Nonprofit | No Comments
Chief Financial Officer (CFO) holding meeting.

Among all top-level jobs in an organization, none is quite as dynamic as that of the Chief Financial Officer (CFO). What was once a position defined by its role managing the company’s finances is now a job at the intersection of people, technology, plans, and yes, finance. Here’s what’s changing and why in the role of the CFO, and how many CFOs are responding to these challenges.

Addressing Talent Shortages

We’ve written at length in previous articles about the talent shortage in the accounting profession. Fewer college students are pursuing an accounting degree, and even fewer are obtaining their CPA.

To address this talent shortage, CFO are increasingly turning to AI to handle manual and repetitive tasks. According to one Deloitte report (cited in CFO Dive), 8 in 10 CFOs stated they plan to use AI to bridge the skills gap. This saves time for existing staff, who can then fill in some of the gaps caused by the talent shortage.

Consolidating Technology

As you can imagine, the scarcity of candidates to fill key accounting roles forces CFOs to do more with fewer people. In addition to AI platforms, CFOs are increasingly turning to technology to tackle more tasks and reduce stress.

Although adding platforms is possible, some find that separate platforms increase, rather than reduce stress. Task switching, or moving between different tasks or tech platforms, can lead to fragmented concentration and reduced attention spans, both of which can negatively impact performance and efficiency.

One way to fix this issue is to upgrade existing platforms so they are all-in-one. Another option is integration or ensuring that data flows seamlessly among platforms. If considering a technology upgrade, the CFO should estimate future needs and anticipate scaling up as needed over time. This may require consultation with an expert who can help you weigh the pros and cons of various finance platforms.

The Changing Role of the CFO

CFOs have traditionally been the financial managers of their companies. But today’s CFOs may be actively involved in technology purchases, recruiting and hiring, and revenue opportunities through sales and marketing collaborations. It’s not unusual for CFOs to be asked for advice on price setting, discounting, and similar tasks that were once delegated to others. CFOs are rapidly becoming the overall financial advisors for their companies, whether it involves revenue generation, price setting, marketing management, or technology purchases.

Consider the Present and Plan for the Future

When it comes to technology spending – either adding AI tools or upgrading existing financial management systems—it’s vital to consider the present but plan for the future. That’s often easier said than done. But for the CFO, it’s increasingly important to lead the technology discussions to ensure that finance has the support it needs to be productive.

It can be challenging to estimate technology needs in the future when no one is certain what may come next. AI is evolving so rapidly that it seems that if you blink, you’ll miss an update. But good leaders know that the time to act is before there’s a crisis. Acting now to address talent gaps, evolving roles, and technology needs is the smart way to go.

Welter Consulting

Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services that can help you with your accounting needs. Please contact us for more information. 

Jul 08
0

Responsible by Design: Building Guardrails for Safe Generative AI Use in the Workplace

By | cyber security, Data, Nonprofit | No Comments
Safe Generative AI Use

According to a McKinsey report, 8 in 10 companies report using GenAI. The question isn’t whether your organization uses GenAI, but how it will use it safely. And, if you are not in front of that question, leading and guiding your team in responsible generative AI use, they may inadvertently use it in ways that compromise data security.

Who Uses GenAI and Why?

Ask your team who is using GenAI and then dig into the reasons why they are using specific platforms. The answers will help guide you as you craft a GenAI use policy and consider paid versions of individual platforms.

Free platforms offer decent web searching, with some, like CoPilot, providing source links. If your team is using these tools to quickly find information, that’s fine. But be sure they understand the ramifications of uploading data or text into any of the “free” and public GenAI tools such as ChatGPT and CoPilot. Most, if not all, free tools ingest data for training purposes. This may or may not expose the data to others. It’s always best to err on the side of caution and limit the use of public, free AI tools to find or use publicly available data. For optimal data protection and security in AI platforms, the best recourse is to select paid, enterprise versions and ensure that security settings protect your organization. is.

The Basics of Business AI Use

Does your organization have a policy for using AI? If not, it’s time to draft one. Such a policy spells out for employees how generative AI may be used, under what circumstances, and which tools employees may use.

If you do not explicitly tell people which platforms they can and cannot use, they will use whatever tools they wish, including platforms that are not controlled as part of your company’s technology systems. These non-company-sanctioned platforms are referred to as “shadow IT.”  They can be problematic in that accidentally misusing them can expose your data to unwanted third parties.

Give Employees Access to Approved Platforms

Evaluate your company’s needs and examine workflows. Where might AI tools be helpful? The results of this evaluation can be used to select one or two AI tools to pilot.

Enterprise-level paid subscriptions to common AI platforms, such as paid Microsoft Copilot and Chat GPT, offer multiple benefits. They can be integrated with existing platforms, such as Copilot integration with SharePoint, to maximize efficiency and usage. They can also come with added privacy guardrails that ensure no sensitive data leaks from your company’s systems.

Be sure to read the fine print on any platforms you use. Some enterprise-level subscriptions still do not let users opt out of using data for training purposes, which means your data can be stored on the platform to train the LLM model (Large Language Model). If there is any chance of exposing sensitive data when using your GenAI tools, and it’s set to use them for training, you should skip that tool and find another.

Discuss with your IT team how to secure your data even further. Enterprise-level systems have multiple safeguards, too many to discuss in this article. And each tool differs in what is available and how it is used. The goal is to ensure privacy and security for all your data without compromising productivity.

Limit Access to Sensitive Files and Systems

Another step to maintain data confidentiality is to limit access to it. If users can’t download or view sensitive data, they can’t use it. And, if your AI tools are blocked from specific files, or the files are housed in a separate system that AI cannot access, you are protecting it from unauthorized use. Payroll and HR, for example, may be kept on entirely separate systems to ensure that no sensitive personal information is accidentally leaked through the AI.

Data Loss Prevention

Consider adding data loss prevention tools to your tech stack, too. Data loss prevention is a cybersecurity strategy that helps your company identify, monitor, and protect sensitive data. It helps prevent confidential information from being shared either accidentally or intentionally. It also prevents unauthorized users from accessing data. The tools can block, encrypt, or alert users when they sense risky behavior.

Depending on the data loss prevention platform chosen, they can protect laptops, cloud services, email, and more. These tools are great at helping companies maintain data compliance policies. They can reduce the risk of data breaches and improve overall security.

Employee Training

Lastly, employee training is vital to ensuring responsible AI usage. Just as you provide (or should provide) frequent cybersecurity training to make sure cybersecurity best practices remain top of mind, AI training helps employees understand all the ramifications of using these tools. It also ensures that you set the rules before employees become entrenched in their own way of accessing and using AI.

Responsible AI Usage

As companies continue to adopt AI, it’s vital to maintain safeguards to protect sensitive data. Choosing the right platforms, purchasing enterprise-level licenses, working with your IT department to safeguard data, and even housing sensitive systems and files separately are all possible ways to protect data. Never forget employee training, which is also a key element to keeping data safe.

Welter Consulting

Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services that can help you with your accounting needs. Please contact us for more information.

Jun 19
0

Finding and Supporting the Next Generation of Accountants

By | Accounting, Nonprofit | No Comments
accountant at laptop computer

We’ve written about the anticipated shortage of accountants many times. Fewer college students are graduating with accounting degrees, and among those who are, fewer still become CPAs. There are ways to mitigate against the possible shortage of accounting talent, such as embracing automation, technology, and AI efficiencies, but no amount of tech will substitute for the skills of a good accountant or CPA.

That’s why we celebrated the recent steps that the AICPA has taken to address the possible shortage of accounting talent. Here are all the things they’re doing to help prepare the profession for the future.

The AICPA Pipeline Acceleration Plan

The AICPA Pipeline Acceleration Plan addresses the ongoing talent shortage in the accounting profession by implementing targeted initiatives at various stages of the CPA pipeline. The plan focuses on increasing awareness, improving perceptions of accounting careers, enhancing education and training, and fostering diversity and inclusion.

Highlights of the plan include:

  • Career paths in accounting: CPAs share their career journeys with students, highlighting the daily challenges they face and encouraging them to explore various career paths.
  • Addressing stereotypes: Books, movies, and television often portray CPAs as nerdy and unattractive. By directly confronting these stereotypes, CPAs can offer students a realistic view of the CPA profession that challenges and dispels stereotypes.
  • Interactive sessions: Another way in which CPAs are encouraging students to consider accounting careers is through direct interactive sessions. Career days or classroom visits within their local community can encourage students to ask questions and to consider accounting careers.

Experience, Learn & Earn (ELE) Program

Launched in 2023, this program provides students with paid work experience while earning affordable college credit hours. It is designed to help candidates meet the 150-hour CPA licensure requirement without excessive financial burden. The program goal is to increase both access to and the affordability of the CPA license requirement.

STEM Recognition for Accounting

STEM fields encompass science, technology, engineering, and mathematics. The AICPA is advocating for accounting to be classified as a STEM field, which would allow K-12 STEM grant funding to support accounting education and improve access for underrepresented students. The organization is actively seeking bipartisan support to allow K-12 STEM grant funding for accounting education, as well as adding six accounting degrees to the government’s list of STEM degrees.

Accounting Opportunities Experience

CPAs are also stepping into the classroom to share their experience with students. Part of the AICPA outreach includes the “Accounting Opportunity Experience,” in which CPAs participate in career awareness events at local high schools. Through direct, personal community outreach, these CPAs are introducing a new generation to the profession.

Firm Culture & Business Models

The plan encourages firms to offer competitive salaries, career advancement opportunities, and flexible work environments to attract and retain talent.

The AICPA is working with stakeholders, including state CPA societies, academia, and accounting firms, to implement these strategies and strengthen the profession’s talent pipeline.

What You Can Do

While the AICPA is doing its part, you can do yours as well. Encourage the young people in your life to consider a career in accounting. Teens often view accounting as boring. Help them explore the many ways in which accounting contributes to society and business, including specialties such as nonprofit accounting, forensic accounting, tax accounting, and more. Students often form an impression of a career from television or movies, and there’s so much more to any field than what is depicted in their favorite shows.

Welter Consulting

Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services that can help you with your accounting needs. Please contact us for more information.

Jun 17
0

Imagining the Unimaginable: Recovery from a Personal Data Breach

By | cyber security, Data, Nonprofit | No Comments
"data breach" with locks over data pieces

Can you imagine losing $43 billion? It’s hard to imagine losing $43, let alone $43 billion, but that’s what AARP claims American adults lose to identity theft and fraud each year. That’s a staggering number. And it doesn’t matter whether this information is lost by an organization that failed to protect customer data or an individual who fell for a phishing scam—the results are the same. Lost time, lost reputation, and yes, often blame and shame.

Cybercriminals continue to grow increasingly sophisticated in using both technology and psychology to trick victims into disclosing sensitive personal or financial information that can lead to theft and fraud. If you’ve fallen victim, please don’t blame yourself. Instead, act now to recover from the situation.

An Ounce of Prevention

The old saying “an ounce of prevention is worth a pound of cure” is very apt when it comes to identity theft. Many organizations, including the IRS, have published information to help people whose identities were stolen as part of a tax fraud scam. But did you know that there are 20 types of identity theft? Credit and debit card theft, stealing mail to gain access to confidential information, and other types of theft are common ways in which criminals gain access to personal information.

Many credit card companies now have safeguards against such theft by locking cards and contacting the cardholder when card activity suddenly increases past the cardholder’s typical activities. Still, it’s not foolproof. Consumers should monitor their credit cards, bank accounts, and credit scores frequently and guard against phishing emails or phone calls designed to trick the unwary into revealing sensitive information through a sense of urgency or familiarity.

How Do You Know If Your Data Is Compromised?

When personal data is compromised, it can lead to serious consequences, including financial loss, identity theft, and ongoing security risks. Consumers may notice unauthorized transactions, unfamiliar login attempts, or receive password reset emails they didn’t request—all potential signs of a breach. Additionally, a surge in spam calls or phishing emails could indicate that personal information has been leaked to third parties. In some cases, unexplained changes to security settings, such as modifications to two-factor authentication, may suggest that an account has been accessed without permission.

To identify whether personal data has been exposed, individuals can closely monitor their financial accounts, review credit reports for unusual activity, and utilize online tools designed to detect breaches. Many organizations offer data breach notification services that alert users if their information appears in leaked databases. If suspicious activity is detected, immediate action is necessary—this includes updating passwords, enabling additional security measures, and reporting the incident to the relevant financial institutions or authorities.

Recovering from a personal data breach requires a proactive approach. Establishing strong security habits, such as using unique passwords for each account and enabling multi-factor authentication, can help mitigate future risks. Consumers should also remain vigilant against phishing attempts and fraudulent communications, as cybercriminals often exploit compromised data to launch further attacks.

Recovering from a Data Breach

Although there is a lot of information published online to help individuals recover from a data breach, it can feel overwhelming to sort through it all. One helpful tool provided by the Federal Trade Commission is an interactive website, Identity Theft, which can help you create a personalized recovery plan.

If you suspect your personal data has been compromised, acting quickly can help minimize potential damage. Here are the key steps to take:

  1. Confirm the breach: Check for unusual activity in your accounts, such as unauthorized transactions, password reset emails you didn’t request, or unfamiliar logins. If a company notifies you of a breach, verify the details through their official website.
  2. Secure your accounts: Change passwords for affected accounts. Don’t reuse passwords across multiple sites. Mult-factor authentication also adds another layer of protection.
  3. Monitor financial activity: Review your bank and credit card statements for suspicious transactions. You can also place a fraud alert on your accounts or freeze your credit.
  4. Watch for phishing attempts: Scammers often use leaked data to send convincing emails or texts asking for personal information. Don’t click links in emails. Instead, close the email and navigate to a new browser tab before logging in and checking to see if the email is legitimate.
  5. Check for identity theft: If sensitive information, such as your Social Security number, has been exposed, monitor your credit reports and consider enrolling in an identity theft protection service.
  6. Report the breach: Notify your bank, credit card issuer, or relevant authorities if you detect fraudulent activity. If the breach involves your workplace or a service provider, follow their recommended security steps.
  7. Stay informed: Keep an eye on updates from the breached company and cybersecurity experts. They may provide additional guidance or offer free credit monitoring services.

Taking these steps can help protect your personal information and reduce the risk of further harm.

Welter Consulting

Welter Consulting bridges people and technology together for effective solutions for nonprofit organizations. We offer software and services that can help you with your accounting needs. Please contact us for more information.