I have been asked by an editor of a publication to answer 2 questions on the accounting profession. In case my words are twisted, deleted or otherwise changed – here are the 2 questions and my direct answer.
What kind of a year was it for the CPA profession in 2011?
The accounting profession hardly moved in performance due to the fact that (in general) it did not start being proactive with marketing and servicing their existing clients with value added services. If the only strategy is to reduce costs then, yes, profits will increase, however new clients and much needed services to existing clients will not eventuate. The profession could be wiped out by internet based accounting systems. It needs to step up and take it’s rightful place as the trusted advisor
What kind of a year are we expecting in 2012, given that the year is half over already?
The proactive firms are doing well. They always will. The reactive firms will always turn in a mediocre result. This year will be a ‘same same’ year as last year. The profession makes too much money too easily and as such apathy creeps in. I think most partners of firms are lazy – especially when it comes to servicing clients properly by offering value added services. A tsunami of change is on the way with internet based accounting systems. Firms need to get ready for a reduction in annual tax work over the next few years. I am a big believer that this needs to happen. To remain relevant innovation and new services must be introduced – otherwise many firms will go the way of the dinosaur.