It is estimated that up to 40% of ‘compliance revenue’ will be wiped out by technology and outsourcing! Outsourcing to Asia, cloud accounting and convergence of internet based technology at the SME end is what is driving it.
Compliance is fast becoming a commodity. Why would a business owner pay an Accountant $10,000 for their annual compliance when they can get it done for $5,000 (or less) from other nimble providers. It’s an historical document which means little to your client base. It’s late (up to 18 months late) and your clients can get real time data from their internet based accounting system.
Time to get your heads out of the sand Partners (3 partner firm below) and start adding value to clients. If 80% of your revenue is in compliance and there is a pending 40% reduction that’s a 32% reduction in revenue from your primary product.