Save content
Have you found this content useful? Use the button above to save it to your profile.
futuristic skyline
istock_ispyfriend_if

Tech evolution reshapes practice landscape

by
9th Aug 2016
Save content
Have you found this content useful? Use the button above to save it to your profile.

AccountingWEB examines the changes wrought on the practice landscape by a multitude of technological tools and innovations.

An oft-repeated manta for those who follow the accounting world is that technology has the potential to make basic accounts preparation and bookkeeping easier for businesses. This creates a knock-on effect for many firms, as they seek to carve out innovative opportunities to add value to their clients.

But how does the mythical firm of the future operate? How are the innovators using technology to stay ahead of the pack? And what, if anything, should firms be doing to adapt?

Cloud driving change

While judging the innovative firm of the year category in this year’s Practice Excellence Awards and comparing the entrants’ strategies to previous years, we can see there has been an evolutionary surge in practice technology habits since the advent of cloud accounting.

Cloud proponents frequently emphasise the close link between collaborative online accounting and the provision of proactive business advice - often referred to as the ‘trusted adviser’ model.

The evidence from the Practice Excellence entrants during the past five years supports this analysis, with innovative firms consistently using new technology to introduce new behaviours such as strategic business advice, virtual FD services, fixed fee and value-based pricing arrangements and online marketing activities.

This transition is as marked as the shift to Windows 95, integrated practice databases and electronic self assessment witnessed nearly 20 years ago.

Adapt and thrive

If we are witnessing a dramatic evolutionary shift within the profession, what will firms need to do to adapt and thrive in the new environment? Recognising and embracing technology's potential to streamline operations and deliver a more effective, client-centric service is a first step.

One innovative firm nominee said in its entry: “As modern, 100% online accountants, we are constantly striving and developing new ways of using technology to give better service to our clients and increase the efficiency of our internal systems: from streamlining the client on-boarding process to maximising staff productivity.”

Despite being a relatively small start-up, the firm employs a digital developer to design and develop new software and resources and is prospering as a result, delivering high growth and client service levels on a 30-hour working week.

Another developed their own internal CRM system, as existing CRM tools weren’t specific enough for their clients’ needs.

The next step to survival is knowing what the different building blocks do, and how to fit them together in a way that doesn't drag your focus away from client responsibilities, but frees you and your team up to serve them more productively.

Areas emerging from the 2016 entrants include:

  • Core accounting systems - get the numbers right earlier, and use them to work collaboratively with clients
  • Reporting, analysis and KPI systems - develop self-serve models with clients so they understand and act on their own numbers
  • Practice and client management systems - enhance the firm’s internal systems to manage client communications, control workflows and keep tabs on key prospects
  • Digital outreach tools - email and content marketing, blogs, webinars and social media-based marketing strategies

Old novelties are the new norm

One thing that has become clear from looking at the entrants to the innovative firm award in particular and the wider practice landscape is that the pack has caught up with the market leaders. Technology trends are more generalised and what is cutting edge is less obvious now. Old novelties have become the new norm and the pack is still waiting to see what the next tech trend to come in and disrupt the market will be.

In the running are concepts like artificial intelligence (AI), bots and blockchain. But their precise relevance to the day-to-day is still unclear. The next article in this series will look a number of recent trends and assess how they have affected the accounting profession.

What are your practice technology predictions and where do you see the profession going?

AccountingWEB is running a free online interactive conference series called Practice Excellence LIVE on 24-27 October, with a technology stream delivered in association with Sage. Register now for two tech sessions: Three tech trends you need to know about and Technology: revolution or evolution?

Replies (0)

Please login or register to join the discussion.

There are currently no replies, be the first to post a reply.