The last time I made 12 predictions for the profession was in 2010. They have all happened or happening! The market has changed and after copious amounts of research I am predicting 12 critical changes to the profession in the coming years. Here goes…
- Compliance will (already) become a commodity service that will be sold by the most efficient, lowest cost provider
- Around 90% of businesses will embrace cloud technology as their Accounting system – approx. 10% now
- Around 90% of Accounting firms will embrace cloud technology as their operating system – approx. 3% now
- Business coaches and consultants will embrace cloud financial analysis tools that enhance their credibility and take business away from Accountants
- Compliance clients will become more transient as their data is light and more portable – gone will be the local Accountant with 80% of clients in a 20km radius
- Cheap and very smart offshore labor and offshore based Accounting firms will process the majority of ‘back office’ based compliance for local Accounting firms and local businesses – the local firm will be customer facing and everything else will be done offshore
- The price of statutory compliance (what we know today) will plummet by more than 50% of the current price
- Marketing and Sales skills will be learned and implemented in the majority of Accounting firms
- Young people will not be attracted to traditional ‘staid & boring’ Accounting firms – instead opting for technology savvy and value adding Accounting firms
- Time based billing (the archaic hangover from the last century) will be replaced by packaged services with fixed fees – hopefully the fixed fee is based on your value contribution
- With compliance revenue plummeting Value Added Services will make up more than 80% of the revenue of an Accounting firm
- Clients who have been yearning for additional services will finally be served properly by their professional advisers
You may believe, you may not. You may be seeing and feeling them already. Your firm will need to adapt to capitalize on these. There is a tsunami of change happening. You can get wiped out or you can learn how to surf!
What are your views on my predictions?