Are old-fashioned practices holding your accounting firm back? From limited remote work options to a lack of marketing and branding efforts, there are several practices that accounting firms should break away from to stay ahead of the game. As the accounting industry continues to evolve, it's essential to learn how to adapt and innovate to meet the changing needs of clients.
In this post, we'll delve into some old-fashioned practices that might be holding back your game and explore modern solutions such as cloud-based software, AI, and machine learning, that can enhance service delivery for accounting firms to stay ahead of the competition.
7 Old-Fashioned Practices In the Accounting Industry
1. Relying on paper-based systems
Paper-based systems have been a common practice in accounting firms for years, but they are now considered inefficient and outdated, not to mention time-consuming and error-prone processes.
By implementing cloud-based software, accounting firms can streamline their operations and enhance their service delivery to clients. Cloud-based software offers real-time data access from anywhere with internet connectivity, eliminates the need for physical storage space, and allows for secure data sharing with clients. Some popular cloud-based software used in the accounting industry includes QuickBooks Online, Xero, and Sage Intacct.
2. Limited remote work options
The pandemic has forced us to adapt to a new way of working, with remote work becoming the new norm. This change has highlighted the benefits of remote work for both employees and employers, including increased productivity, reduced stress and burnout, and improved work-life balance. Accounting firms that fail to offer remote work options risk losing top talent and limiting their ability to attract new candidates.
3. Lack of diversity and inclusion
The importance of diversity and inclusion in the workplace cannot be overstated. By embracing diversity and inclusion, accounting firms can create a more vibrant and dynamic workplace. Obviously, this requires a concerted effort, including strategies such as actively seeking out and recruiting diverse talent, offering training and development programs to support diversity and inclusion, and creating a culture that values and respects differences.
Some accounting firms that have successfully implemented these strategies include PwC, which has established a Diversity and Inclusion Advisory Council and offers training programs to support diversity and inclusion, and EY, which has set a goal to achieve gender parity by 2025 and offers mentoring and sponsorship programs for underrepresented groups.
4. Focusing solely on compliance work
Focusing solely on compliance work is no longer enough for accounting firms to remain competitive in today's business landscape. Compliance work, which involves ensuring that clients are meeting regulatory requirements, has become increasingly commoditized and offers limited opportunities for differentiation.
To stay ahead of the curve, accounting firms must expand their offerings to include advisory services, strategic guidance on financial planning, risk management, and growth opportunities. Advisory services can take many forms, including business valuations, financial forecasting, and planning. By offering these services, accounting firms can position themselves as trusted advisors to their clients and provide them with the insights they need to achieve their business goals.
Just as an example, Deloitte offers a range of advisory services, including cybersecurity, strategic risk, and mergers and acquisitions, while KPMG offers advisory services in areas such as technology, sustainability, and regulatory compliance.
5. Not embracing technology
The accounting industry has undergone significant technological transformations over the past few decades, making it more efficient and effective than ever before. Technology such as artificial intelligence (AI) and machine learning can automate many manual accounting processes, freeing up time for accountants to focus on higher-value tasks such as data analysis and strategic planning. These technologies can also help accounting firms identify patterns and trends in client data, providing them with valuable insights that can inform business decisions. You can imagine all the business opportunities that you could be missing just by fear of new technologies.
6. Limited marketing and branding efforts
Without a strong brand and effective marketing strategy, accounting firms risk being overlooked by potential clients and failing to stand out from their competitors. Modern marketing strategies, such as social media and content marketing, can help accounting firms reach a wider audience and a stronger brand identity.
Grant Thornton uses social media to share industry insights and engage with clients and prospects, while PwC has a dedicated content hub that provides clients with valuable resources and thought leadership. Marketing strategies can improve accounting firms' visibility, attract new clients, and strengthen relationships with existing clients. Neglecting marketing and branding efforts can result in missed opportunities and decreased competitiveness in the marketplace.
7. Lack of client communication and engagement
Email and phone calls are no longer enough to engage with clients. Video conferencing and chatbots offer accounting firms new opportunities to communicate with clients in real-time, provide instant support, and deliver personalized experiences. A more active support system and communications tools not only increase efficiency and strengthens relationships with clients but ultimately result in client loyalty.
Breaking the Mold: The Key to Success for Modern Accounting Firms
As the accounting industry continues to evolve, it's essential for accounting firms to adapt and innovate to meet the changing needs of clients. By breaking away from outdated practices, accounting firms can transform their operations and provide more value.
Adopting a more diverse and inclusive workplace, offering advisory services, and improving client communication is essential for accounting firms to remain relevant and successful in the long term. So, if your accounting is currently suffering from some of this old-fashioned, this is the signal to break the mold and embrace the modern world.
