Accounting firms are continually adapting to stay relevant and up-to-date with everything from changing tax laws to technology.
Lately, accounting firms have seen technology disrupting their firms’ work flow because traditional job functions have been replaced with cloud-based technology.While the adoption of cloud technology frees up time on tedious tasks, firms need to be using this time to adapt to the changing culture by offering new services.
ProfitSee’s CEO and Founder, Peter M. Vessenes, has seen this trend. He says that business owners are now expecting accountants to offer other services, a term called value-add services. To offer value-added service, and to know the correct technologies for these businesses is the next hurdle. Accoutantsdaily.com author, Jotham Lian, addressed the disruption risk involved in these changes in an article titled, “1 in 5 accounting firms still at risk, survey says.”
Lian looked at a survey done by SmartFee, and it said that 19.4% of Australian accounting firms are in moderate to severe risk for financial failure. There were 10,000 firms in this study, all analyzed on different risk scores such as credit activities, commercial bureau information, and levels of default. The main risk, states Adrian Jenkinson, SmartFee’s Managing Director, is accountants who are not adjusting to the change. These advances in technology should directly correlate to firms pursuing other services with their clients, but accountants are not adjusting to this shift as quickly.
Vessenes noticed these changes and due to his previous experience as a CFO, knew that value-added services were exactly the direction firms need to head to stay relevant. With a forecasting mindset, accountants can take their business to the next level and begin advising, not just reporting. Vessenes says that the main issue is small accounting firms are less adept to change, and therefore can easily get far behind the larger firms who adopt cloud-based technology quicker.
“Once the larger firms figure out that value-added services are not just a dashboard, but actually advice driven, the pressure on the smaller firms will intensify. I believe this will take place globally over the next three to five years.”
This is the philosophy behind the creation of ProfitSee; small and mid-sized businesses need access to the financial insights and value-added services that are available for larger corporations. Accountants and bookkeepers have the skills and knowledge to be able to help these companies create financial stability, improve profitability, plan for future growth, and truly thrive.