The New Age of Accounting: What firms need to do to stay Competitive

Watch

Listen

Read

The accounting industry is always changing and evolving, from new regulations and procedures to the latest technologies and digital tools that help streamline processes and improve accuracy.

As a result of this ever-changing landscape, partners in independent accounting firms are being pushed to adopt new methods, philosophies, and adapt their approach.

Digitization of Data Capture and Service Delivery

One particular trend that I find most interesting is the digitization of data capture and service delivery.

In today’s increasingly digitized and mobile world, many firms are now switching over to cloud-based solutions, or digital imaging, instead of paper-based filing systems. Which makes a lot of sense.

COVID certainly expedited this for many firms, who now are able to do the majority of their work and client meetings virtually. This allows for faster access to important documents, better tracking of information, and more efficient communication among staff members and clients.

The Use of Automation

Another trend gaining traction in the industry is automation.

Automation can significantly reduce manual entry time, allowing accountants, bookkeepers, and their clients to focus on higher value tasks.

By automating processes like data extraction from source documents, invoicing, bank reconciliations, budgeting, payroll processing and more - both productivity and accuracy are improved.

Emerging Use of Artificial Intelligence (AI)

Unless you've been hiding under a rock, you have likely heard about the emergence of artificial intelligence (AI), specifically ChatGPT, and how its making its presence felt in the industry.

With AI-driven solutions becoming more sophisticated by the day – from tax compliance checking services to expert systems for tax advice – it is clear that those who embrace these advancements will have an edge over competitors who remain stuck in outdated working practices.

These exciting advancements can also feel like a threat to the current day independent accounting firm.

Emerging Online Automated Accounting Businesses

While on a family holiday, I came across a YouTube ad for a company in the UK called Ember. Ember touts that you can access real-time tax optimization simply with the information that it accesses through your bank accounts and it's software.

Ember also consolidates their offering to include tax filings, bookkeeping software, invoicing, and realtime estimated tax payable throughout the year. Plus they have professional accountants on staff that can consult over video call, and do the compliance work of filing your taxes for you.

My immediate reaction to seeing this ad was shock and excitement - to be able to forecast and know exactly how much I'm going to be paying my accounting staff or contractor, knowing exactly what I'm paying every single month, and what I'm getting in return for that investment is incredible. Not to mention, I'm able to forecast exactly how much tax payable estimated that I'm going to be having to pay at the end of the year so I can prepare for that.

However, that shock and excitement as a business owner turned into worry for my clients.

Upon further research I came across another company called Avalara with a similar offering to Ember except it's here in Canada and the US.

The Future of Independent Accounting Firms

So, Why am I saying all of this, and why should you care?

Because I want it to be clear that the future is here and now. The new competition for your client's business is here, and its not other traditional accounting firms.

It’s businesses that are thriving on the value proposition of automation, integration, and simplicity.

I believe in our independent CPA firms. I believe in their willingness to evolve and grow and elevate their offering, client experience and practice as a whole.

Ultimately, the modern accountant needs to keep pace with changing technology if they want to stay competitive. For partners at independent firms, this means creating strategies that focus on staying one step ahead of the curve while creating pathways for future growth within their practice or organization.

Wrap Up

I know this is a marketing channel for accountants and this blog didn't have any specific marketing tips, but let me say, communications, storytelling, and marketing messaging are all going to be more important than ever for accounting firms in the coming years.

My mission is to help you navigate the changing landscape of the financial services industry so you can continue doing the amazing job that you do helping your clients.

If you're looking for a guide to elevate your firm's marketing, be sure to head over to marketmycpafirm.com and download the FREE Ultimate Accounting Firm Marketing Playbook! It's packed full of tools, resources, and exercises to help you build your firm's marketing!

Thanks for reading and I'll see you next time!

Need some additional help? Book a FREE Discovery Meeting today, here, to chat about how I can help!

I'll see you next time.

About the Author

Bryton Udy is the Founder and CMO of atHeart Creative, and host of the Accountant Marketing Mentor YouTube Channel. Dedicated to helping accountants simplify their marketing and communications so they can grow their accounting, bookkeeping, and financial planning businesses, he is passionate about harnessing creative marketing to support the independent accountant.