The accounting profession has been in existence for a very long time. After 16 years working with the profession in 5 countries I have determined it has been doing the same thing for a very long time.
A very long time doing the same thing over and over again – and expecting a different result.
During partner pontification time partners tend to ponder the possible future:
“Maybe this is the year that we reduce our write offs”
“Hopefully we can get all our lodgments done on time”
“I hope we earn more money this year”
“I wish the clients would send in their work when they said they would”
“Maybe, just maybe, the clients will refer more business this year”
“I know we can reduce our WIP and debtor balances for good”
“There is so much untapped potential in the client base”
“Productivity should be much higher – what do they do all day?”
These results are a possible future but not a probable future under the current business model and the same business methods.
If you want a different result then you must first make some different decisions and then put in place some different actions.
The typical accounting firm is a solid (but under performing) business. The clients are loyal, the revenue is mostly recurring and by and large the government determines what work you have to do with your clients. Although solid, this style of business encourages apathy.
There are many outside forces that will determine the future of the accounting firm however the main force that will determine the future is your desire. If your desire to achieve different results is strong enough then you will make some changes. If you have little desire then you will continue doing the same thing you have been doing – and you’ll get similar results.
I think the model of the accounting firm needs to change. For the sake of the clients and the people who work in it – it needs to change. Clients are typically underserviced – they want you to be proactive and offer them more. The people who work in the business are generally not rewarded enough for how smart they are.
The outside forces are listed in my 12 predictions of the future of the accounting firm. My predictions are based on working with many hundreds of accounting firms over a 16 year period and understanding the market implicitly.
Prediction # 1 – Technology (web based) will drive business efficiency in compliance.
There are already web based accounting systems for the business owner to use. There will be many more. As the technology and internet connection speed improves the functionality will improve as well. Part of that functionality will be where the software will seamlessly ‘integrate’ in with the various governments taxation departments.
As the integration happens it will be easier for businesses to get their compliance work done. This will mean less need for the traditional accounting firm who offers little value – other than the preparation of financial statements.