And while technology continues to influence our day to day lives and different aspects of business operations, our concerns revolve around the Accounting Industry. As technology gets ingrained deeper into the Accounting domain, here we will be discussing all about the changing market dynamics and success mantra of tech-first firms.
Changing Market Dynamics
Most of the new-age Accountants are already well-aware of the changing market demands that the Accounting industry is going through and how access to new software has made their job’s comparatively easier. However, if we go back a few years, the shift to technology has escalated, but why so?
Well, speaking factually, the introduction of MTD and the rising need to stay ahead of competitors have been the prime reasons for the rapid infusion of technology in the Accounting industry. Both these factors have had important roles in spurring the rate at which the Accounting industry is transforming. Here’s how:
Making Tax Digital:
The UK government introduced the Making Tax Digital (MTD) with an aim to make the existing tax system more effective and efficient for taxpayers alongside ensuring that tax evasion is minimised. MTD as the name suggests sets out to transform the tax system by 2020, making it a valuable addition to the ongoing digital transformation.
To make this happen, HMRC is working closely with companies that develop accounting software to ensure that taxpayers are able to make the switch to digital tax.
This is a follow up to the above process. Since the tax system is getting digitalised, as a response many practicing Accountants and Accounting firms are leaning towards the adoption of Accounting software as they are both the present as well as the future. And many have already realised its importance and migrating towards cloud-based software, thereby automating day-to-day repetitive tasks. Also, with the rising competition between the tech-savvy millennials and traditional accountants, accounting software have become a winning weapon that everyone wants on their side.
Let’s get into the details of the secrets of tech-first firms and how they are incorporating technology in various sectors of their ecosystem.
Secrets of tech-first firms
Choosing the right tech:
There is no shortage of tech and the marketplace is so crowded that you may get lost if you don’t know what you are looking for. Therefore, the first thing that successful firms and Accountants do is to list down their clientele and analyse their needs. There are software that focus on bookkeeping services while others focus more on core accounting processes. You need to set your priorities straight and see what businesses you are serving and what needs are you fulfilling for them. This is what successful firms already know and are implementing.
Selecting the right integrations:
Tech firms often use various integrations like online payment portals or CRMs or other integrations that can increase their efficiency and overall productivity. However, too many integrations can complicate processes and therefore firms try to limit the number of integrations to as low as possible and keep the number of employees in mind while doing so. Training and development of Accountants is another factor that tech first firms consider since time and resources are vital in the accounting industry if they are to keep pace with their competitors.
Filling the gaps:
Another important factor that counts in the success of tech-first firms is filling the gaps between various teams like bookkeeping teams, auditing teams, advisory teams, etc. And in order to do so, communication is of the utmost importance. Therefore, using messaging apps like Slack, Flock, etc needs to be prioritised over regular channels like emails. Also, project management is equally important and all the tech-first firms see to it that all the teams are on the same page when it comes to streamlining various projects.
Analysing the overall impact:
While technology has made a massive contribution in increasing the overall efficiency and productivity of tech-first firms, it hasn’t been achieved overnight. They have spent months and even years analysing the reports, monitoring KPIs, and working towards improving results. Incorporating tech into the existing ecosystem without monitoring the changes it has brought will do no good and such firms will always stay behind in this fiercely competitive industry.
There is no mantra or secrets for the success of tech-first firms. It is all about adapting and monitoring technology so that Accounting firms can leverage it for their own good instead of kneeling down to it and crumbling down their very foundations.