You may have heard increasing discussion of international versus US accounting standards. Given proliferation of international trade, now coupled with an international financial crisis, it’s only logical that domestic and international accounting standards would invite side-by-side comparison.
The International Accounting Standards Board (IASB) and the US Financial Accounting Standards Board (FASB) are holding round-table discussions to address “financial reporting issues highlighted by the global financial crisis…” (source: IASB Nov. 3 press release).
The release elaborates, “The round tables are intended to help the board identify any accounting issues that may require the urgent and immediate attention of the boards to improve financial reporting and help enhance investor confidence in financial markets.”
Even if you own a US company with no direct international ties, these discussions ultimately may impact your accounting software’s reporting requirements and standards.
I know. Many of you are asking, “I have plenty of time before this affects me, so why concern myself with it?”
Here’s why. There’s a perfect regulatory storm brewing in the accounting services sector. First, there’s the domestic quagmire created by the current financial crisis. Second, the ongoing comparison and contrasting of US and international accounting services standards will produce changes regardless of the present economy. Third, a new Administration and Congress will want to appear gung-ho about undoing harm created, in part, by the sub-prime mortgage mess.
And, you don’t think your accounting system software will be scrutinized? As the pendulum swings quickly toward more government oversight and regulation, no one is immune. By way of analogy, think airline security. No matter who you are or what you do, you can’t carry that unsealed bottle of water aboard.
Given these circumstances, make sure your accounting software is heavyweight enough to address any or all of these accounting services issues. And do it now, not when new regulations are being implemented—and you’re already behind the proverbial eight ball.
So, how do you know if your accounting system software—present or prospective—
is safe and sound? Start by asking the manufacturer for specifics of present and planned accounting software features to address today’s regulations and tomorrow’s changing accounting services landscape. Look for more than reassurance—look for substantive answers that demonstrate knowledge of, and ability to deal with, what’s coming regulation-wise.
And, if that lower-priced accounting software doesn’t quite seem to measure up, move up to more robust and scalable accounting solutions that can take care of your needs now and as you move forward.
