The market has finally shifted. What does that mean exactly? Most of the old-school accounting firms are now moving to new, advanced practices. They have started to look at different pricing models, automation, and a different approach to firm culture. They are looking at alternative business models besides a partnership and putting customers first. They are now what would have been considered radical years ago.
Back in 2010 when the Radical CPA movement started, many peers and thought leaders told us it takes 12 years to shift a market. We've now had about 12 years to actually move the market, with a lot of that advancement likely happening since COVID.
Here are a few notable changes that show that the market has shifted:
- The people attending events are different compared to those who attended several years ago. There were quite a few larger firms, bookkeepers and accounting professionals who aren't CPAs at the most recent QBConnect. Some people dabbled in tax but may not have been completely in tech. The market was younger and energized. The diversity of the crowd was noticeable; there was a whole different vibe. There was a similar scene at a recent state society tax conference.
- Next-gen accountants are opening their own firms. They're building them around communities using digital marketing. The shift is actually happening with leadership, which is huge and makes a big impact.
- There are pockets of innovation in larger firms. They're changing from within, and the managing partners are on board. That was never the case until 2020. It's everywhere now.
- Outside investors in private equity are looking at our industry. There are alternatives to a traditional CPA or accounting firm now that funding is coming in. Firms are getting split up and restructured.
- All this outside money creates leverage for new technology. There are at least seven or eight new technologies coming into the space that focus just on the accounting industry. When has that happened? In the past, tech disruptions have occurred maybe once every few years or so.
And what's even more important is that there are multiple communities pushing for innovation at the same time — helping those who want to move their firms forward!
These are all signs of a market shift that didn't exist before.
The pandemic's role
During COVID, people gravitated toward online communities by default. When they did that, they found different communities than maybe what they were used to circulating in. And these online communities have evolved. It's been the spark that's needed to actually make a movement happen; to just move faster.
COVID pushed this evolution because people had to adapt and change, and quickly. But what's happened is that people are starting to look at how their firms used to change in the past, what they want to evolve to, and how they want their culture to be.
A lot of old-school firms just went away over these last three tax seasons. And that's OK. Some firms have said "These changes are too much," and they're going backward. But those firms are few and far between. There are more firms that are asking instead: "How can I keep going and build this momentum? How do I make my own firm? How do I optimize my firm?" And that's great to hear.
Keep pushing forward
Twelve years is a long time to wait for a shift. And if you think about AI and what's coming up next, we just need to keep pushing and moving forward. The good thing is that the majority of the accounting profession has caught up a little so we're not so far behind as we were.
It's really exciting and amazing to see and it's going to get even better as we're on the verge of accomplishing even more.
