This morning I delivered a short speech (25 minutes) to 150+ Accountants. At the start of the speech I asked the question “On a scale of 1 to 10 how relevant is the Accounting profession today”. The resounding response was 7 out of 10.
When I finished my speech 25 minutes later I asked the same question in a different way. My question the 2nd time was “If the profession does not change in the next 7 years how relevant will it be”?
I started at 10 and my first taker was at 6 as I went down one each time. The overwhelming response was about a 1 in terms of relevance. I was blown away – a 1 out of 10 in terms of relevance if no change occurs in the way the profession operates.
So obviously in 25 minutes I caused a stir. What was I talking about? I made 3 key points:
1. The commoditisation of compliance. With the ‘cloud accounting’ revolution well upon the profession this will drive efficiencies, margin squeeze and the rise of “the internet accountant”. The photo below depicts what it may look like. Not a good look!
2. The way accountants explain compliance (the history) to their clients. Just sending out the year end accounts with the inane ‘sign here’ stickers and not explaining what it all means is just not good enough. Clients do not understand and therefore the value of the history paper is useless. It’s also out of date – by at least 12 months! But the history paper does have value – if it is properly explained. Using technology and a process (we call the process PANalytics) to demonstrate the history makes more sense. Our new internet product (Proactive Success System) explains in laymen’s terms where the money went and what it all means. An example screen shot is below.
3. Adding value. To remain relevant an Accountant must add value to the history document and then help their clients make history. The making of history bit involves real time numbers (available in the pocket or brief case at all times) and the offering constructive suggestions on improving the numbers. Our new “Client Alerts” product tells the Accountant real time what is happening in their client business every day. Being proactive takes on a whole new level with this product & process. When something that you pick up in your client business is not going so well then make the call and explain what you have picked up and what the client needs to do about it. What great client service and what a great tool to sell additional services. See below.
I think the sweat shop above will exist in the future. But that is not the answer. To remain relevant the profession must add more value – plain and simple. It’s time for change. My audience this morning knows it. They are up for it. Are you?