Today, more than ever, midsized accounting firms are under tremendous pressure to pick up the pace of technology adoption to operate more efficiently, differentiate themselves from competitors, and recruit and retain talent effectively.
Several factors drive the need for technology adoption among midsized accounting firms. As we’ve seen firsthand, the COVID-19 pandemic pushed technology options for midsized firms from "nice to have" to "must have" because of the need to work and collaborate remotely. Digitization, automation and cloudification are among the many advances being adopted by midsized accounting firms to scale and improve their operations and outcomes.
Technology adoption was the main focus of a recent Accounting Today
Quality and efficiency
Thriving midsized accounting firms are staying abreast of technology trends and using that technology to scale their businesses, add new services and provide exceptional service.
They are turning to technology to improve the quality of their client offerings and boost employee productivity. Technology-driven services deliver more accurate audits, instantly find errors and anomalies, and can analyze huge amounts of data to provide clients with the insights they need to make data-driven decisions. Streamlining and automating processes with AI and machine learning enable firms to strengthen their core capabilities and rapidly scale their services — all while operating more efficiently.
Higher-quality services and more productive teams are also differentiating factors. Sophisticated platforms and solutions can set accounting firms apart from their competition while motivating teams throughout the organization.
Recruit and retain
In addition to operating more efficiently to serve their clients better, another driver that is pushing midsized firms to adopt the latest technologies is their desire to attract — and retain — top talent, which is key to their survival and growth.
High turnover rates can substantially cut into an accounting firms’ bottom line because it takes significant money, time and effort to identify and bring new employees into the company. Attracting the best talent depends heavily on how well these firms implement technology and change the way they operate.
Working with spreadsheets, ledgers and documents stuffed into filing cabinets is not what today’s workforce gets excited about. From an employee’s perspective, embracing technology enables them to work faster, more easily and strategically. Having one advanced platform that is intuitive, can be deployed globally, allows for collaboration across teams, and minimizes manual tasks enhances employees satisfaction, and can unleash their imagination to add even more value to your clients.
Adapt and comply
The ability to seamlessly adapt to changing tax laws as well as enhanced regulatory scrutiny and increasingly complex tax projections is also driving the need for technology adoption among midsized accounting firms.
Having technology that takes care of compliance obligations and manages audit risks is a critical driver of technology adoption. With regulatory requirements constantly evolving, especially in heavily regulated industries, technology-enabled accounting systems can help firms keep up with changing tax rules and corporate compliance mandates. For example, intelligent platforms have the capability to make tax calculations based on existing and evolving tax rules automatically across different jurisdictions.
One thing is certain: Rules and regulations will continue to change. New compliance priorities will emerge that will require professional service firms to stay ahead of the curve. Technology can simplify that process and ensure firms are in compliance with the latest regulations.
The need for digital transformation is rapidly catching up with midsized accounting firms. There is a tremendous opportunity to deliver higher-quality audits and tax services using the latest technologies. Clients, employees and regulators are increasingly demanding a digital-first, anytime-anywhere professional services industry. Midsized accounting firms can and must catch up with readily accessible tools with the goal of operating more efficiently and with agility at scale while providing better business outcomes for clients.
