Foodstuffs rot and decay over time. By wrapping my sandwich in clingfilm and putting it in the fridge, I'm future-proofing it, protecting it from its future state of decomposition. But it's not just food that can be preserved this way – and not just food that can lose its value. It's vital that you preserve your accounting firm's value so that it remains relevant, fresh, and nutritious, if you will, long into the future.
You can take several steps to future-proof your accounting practice and ensure it remains successful and competitive in the coming years – add a little metaphorical cling-wrap to it. Let's look at some essential steps you can take to future-proof your firm.
1. Invest in technology
As the accounting industry becomes increasingly digital, investing in technology and digital tools is essential to help your practice operate more efficiently and effectively. This could include software for managing clients, tracking expenses, and generating reports, as well as tools for collaborating with clients and team members. A recent Wolters Kluwer survey found that:
81% of firms that use cloud-based firm management technologies reported higher revenue growth and profitability than traditional firms;
Practices that were early adopters of cloud technology were 13% more likely to add new services; and
77% of survey respondents said technology is helping them reduce the number of hours worked per client and return.
Gone are the days of collecting and keeping physical receipts in a box or recording transactions by hand. Technology can help make your work more efficient and exciting by automating some of the most cumbersome tasks and freeing up time for you to focus on more fascinating and valuable services. For instance, Syft Analytics empowers you to create and collaborate on beautiful financial reports in a fraction of the usual time.
2. Stay up to date on industry trends and developments
The accounting industry constantly evolves, so staying current on the latest trends and developments is essential. This could involve attending conferences and workshops, reading industry publications, and networking with other professionals in the field.
Some of the latest trends include:
Remote working: which particularly appeals to the younger generation joining the workforce and offers increased flexibility and decreased overhead costs;
Data security: which is proving to be increasingly important as more and more organizations are breached;
Pro tip 💡: An excellent way to protect your firm is to implement systems with two-factor authentication requirements so that only authorized users can access sensitive data. For instance, Syft Analytics requires two-factor authentication.
Advisory services: which meets client demands for advice on making critical business decisions in real-time;
Automated processes and artificial intelligence (AI): which can improve efficiency and accuracy in your operations;
Speaking of which, have you seen our AI Commentary tool?
Value-based pricing, which empowers you to take charge of your business and charge what you are genuinely worth;
Blockchain: Bitcoin and other cryptocurrencies are very popular, and many businesses are beginning to accept cryptocurrency payments. So, it may be worth your while to look into the last 3 million tokens that remain to be mined;
Big data: which refers to the large volume of data that organizations collect from various sources. It's imperative to find ways to store this data, mine it for insights, and then turn these insights into actionable knowledge if you would like to remain competitive.
Online marketing: the world has moved online. We use online reviews to determine which restaurant to go to, which spatula to buy, and even which accountant to use. Many people form tight-knit communities on Facebook or LinkedIn, where insightful articles may be shared. You might want to start a blog to show you are a thought leader. Or maybe you may get more involved in social media spaces where your client niche hangs out;
Data analytics: which can help you help your business clients uncover insights within their financials, identify process improvements that can increase efficiency, and more effectively manage risk.
Cloud-based software: which is accessible from any device with an internet connection, always has the most recent updates applied, can connect with a wide range of apps for additional functionality, has automated backups that are always available, and empowers multiple users to work on the same entity simultaneously; and
Diverse skills: To be successful, accountants must use technology, understand data analytics, and communicate effectively with clients. They also need to be well-versed in business concepts to provide valuable insights to their clients.
As the world becomes more complex, businesses will require more specialized services from their accountant, so accountants must continually update their skill sets to stay ahead of the curve – and keeping abreast of changing trends is a critical part of this.
3. Offer a range of services
To remain competitive, it is essential to offer a range of services that meet the changing needs of your clients. This could include tax planning, financial planning, business consulting, and traditional accounting services.
4. Foster strong relationships with clients
Building strong, long-term relationships with clients is essential for the success of any accounting practice. This means providing high-quality services, responding to client needs, and proactively offering advice and guidance.
As noted, accountants need to be able to provide advice to their clients more than ever before.
5. Invest in professional development
If you want to keep your finest employees, you must do more than give them more time off; you must also provide them with opportunities to grow their skill sets and work at the top of their license. Some of the skills with the highest demand include consulting and advisory skills, with more than 80% of respondents in the Wolters Kluwer survey saying these are what clients want most.
Investing in your professional development is critical to ensuring your practice remains competitive. This could involve taking courses, attending workshops, and earning additional certifications to keep your knowledge and skills current. For instance, you may want to enroll in a few courses on Syft Campus to improve your software, technical, or soft skills.
Pro tip 💡: The Work Readiness Bundle may be of particular interest to you if you are onboarding new staff members.
Closing thoughts 💭
Just as clingfilm safeguards a sandwich from the inevitability of decay, so too can strategic measures preserve the vitality of your accounting firm in an ever-evolving landscape. Embracing technology, staying abreast of industry trends, offering a diverse array of services, nurturing robust client relationships, and investing in ongoing professional development are the metaphorical layers of protection that will future-proof your practice.
As you wrap your firm in these proactive strategies, you not only shield it from the threat of obsolescence but also ensure that it remains a fresh, relevant, and thriving entity, ready to meet the challenges and opportunities that lie ahead. In this dynamic environment, the commitment to evolving and adapting becomes the key ingredient for sustained success.