The rate of change in technology over the past few years has been rapid. And the accounting profession has been impacted in a myriad of ways. But adapting to change can be difficult, especially if you've been in practice for a long time and are used to doing things a certain way.

How do you approach change and help those who are more resistant to it within your firm to do the same?

Well, let's start with the basics? Why change in the first place?

It appears that in order to remain relevant in the future, accountants will need to be able to be agile, especially when it comes to the changes brought about by the latest advances in technology. As employers have noticed the increasing need for technological skills, many have debated whether to hire IT specialists or accountants. Soon enough, CPAs will be able to fulfil both roles! Starting in January 2024, technology will be one of the four knowledge areas at the core of being a CPA.

For those who are already practicing today, it may be a good idea to learn a bit more about tech and how it will impact accounting going forward.

While it may not be difficult to convince the more tech-savvy accountants to get on board with automated processes and AI-driven insights, getting 60-year-old, cheque-sending Teddy to make the switch could be tricky... And what if you have a whole team of old-fashioned or, simply risk-averse Teddy's?

Here are our 5 top tips for effectively managing change in your practice.

When the pandemic hit, we were all talking about the "new normal" of social distancing, online learning, and working from home. The "new normal" was one of endless Zoom or Teams meetings, masked faces, and permanently dried out, super-sanitized hands. But this isn't all that the "new normal" brought us.

Beyond the measures taken to curb the spread of COVID-19, the "new normal" accelerated the use of:

It also increased the existing trend in demand for instant delivery and maximum convenience to consumers.

Some of these changes simply can't be reversed. As research by IRIS found, the spread of COVID-19 only accelerated trends that were already evident prior to the pandemic. Before the pandemic, 25% of the firms surveyed were growing their digital operations, while 75% of firms took the plunge into digitalization during lockdown.

It's a hard pill to swallow, but we aren't ever likely to fully return to the "old normal". Not in terms of consumer demands and expectations, our use of technology, or our new flexible working styles.

So, it's time to stop expecting that you can stay the same when everything around you has changed immutably.

The first step to managing change in your practice is to acknowledge, often and publicly, that the world we live and work in today isn't the world of 2019 or before. Too much has changed that simply won't change back and if you don't want to be left behind, you need to go with the grain of change - not against it.

In one article, futurist, Kelly Dent, says that we are living in "the productivity era" and that in this era, "accountancy firms need to see this as space to experiment, a carte blanche opportunity to do things differently and do things better than ever before". The only way to do this is embrace uncertainty and use this liminal space between the known and the unknown to launch into new opportunities.

Even though everyone has had to shift towards a "new normal" in some way, this doesn't mean that every business is using these new tools in the same ways. There's always space for you to use the latest developments in unique ways. Now is the time to start thinking outside of the box and to encourage the rest of your practice to do the same.

Ask yourself how you can incentivise curiosity and collaboration, and how you can think about building for contribution rather than extraction.

If you show that you are open to new ideas around the technology that your practice uses, the way in which meetings are conducted, or more flexible working policies, your staff will be encouraged to be more innovative in their thinking. As Kevin Whitehouse of Prime Entry accounting firm says:

“Technology solves many problems, but creates many more problems if the culture and the thinking doesn't change with it.”

It's crucial to adjust your mindset along with your processes.

One of the main reasons that accounting firms are currently struggling to fill vacant roles is that there is a persistent skills gap when it comes to using the latest technology. In an industry that has become so tech-driven in recent years, finding ways to adapt and address the skills gap is one of the best options to meet changing requirements.

Empower yourself and your team with the time and resources to brush up on old skills and learn new ones - such as how to work with new accounting software, how to automate repetitive, time-consuming tasks, and how to use reporting and analytics software to lower the cost to serve when it comes to adding more value to clients.

According to one report by ACCA, 49% of Gen Z (those born after 1996) respondents listed "opportunities to continually acquire new capabilities/learning" as one of their top five attractions for employment. And hiring young accountants who grew up as digital natives can be immensely beneficial to your firm as you begin to digitalize.

If you invest in upskilling your staff, you ensure that your firm remains competitive and that you attract new talent.

As the leader of your practice, you need to set an example for your employees when it comes to managing change. The kind of leading that is most beneficial here is the kind that exhibits the ability to handle dynamic change in a more inclusive, caring, and adaptive way.

Creating mentorship relationships can be immensely beneficial when it comes to change management. And it's not just about the benefits a mentor can give to their mentee - this relationship works in both directions. While a mentee can learn a great deal about accounting and business practices from an older, more experienced mentor, a mentor can learn more about the latest tech from their mentee. And it's beneficial for both mentors and mentees to learn different perspectives gained from different experiences.

Another one of the biggest changes accountants are being confronted with is clients who are beginning to place more emphasis on their accountants' business advice, not just compliance work. This offers a world of new possibilities to experienced accountants to work as trusted advisors, sorting through the complexity of their clients' data. But it also requires new competencies, such as:

Jeffrey Rogers, a principle at the tech-futurist group, be radical, says,"Competitive advantage today is not through scaling production but scaling learning." Those professionals who can learn new skills quickly and can adapt to change and solve complex challenges will come out ahead of the curve.

It's time to get on top of the skills that will stand you in good stead moving forward.

Contrary to what you may think, creativity isn't just a personality trait, but a skill that can be fostered. Creativity is vital when it comes to solving problems and connecting the dots. It is this skill that takes you beyond merely identifying an issue to finding a way to deal with that issue. And it is for this reason that creativity is considered one of the most in-demand skills in any industry.

As the Journal of Accountancy notes, you can nurture creativity by:

As Samantha Mansfield writes for Thomson Reuters:

"Today, continual learning is a part of being an accounting professional, and we are always expanding the areas on which accounting professionals can focus... And this is crucial to remember, because positions in the tax & accounting profession will continue to be under pressure as technology continues to advance, but those that do not adapt may find their opportunities quite limited."

The only constant in this "new normal" of ours is change. So, don't let the prospect of change keep you up at night. With new skills and responsibilities come new opportunities.

Recently, regulators have made it clear they want to see accounting professionals make better use of data analytics, machine learning software, AI, and other digital technologies in audits, bookkeeping, and reporting. So, there's never been a better time to dive into the tech. And as client demands continue to move towards wanting more advisory help from you, you may as well work on those soft skills too.

Step one is getting still-pays-by-cheque Teddy to make the leap - even if that's you.