One way to overcome the challenge of enforcing consistent processes in accounting firms is to nurture a culture of accountability rather than imposing it.
Cultivating a culture of accountability involves leading by example, defining clear metrics and expectations, and engaging in honest and supportive conversations.
Email Spreadsheets vs. Modern Tools – Despite acknowledging their limitations, mall accounting firms still rely heavily on email and spreadsheets. Some alternatives to traditional email and spreadsheets, which can support effective firm project management, include:
Asana,
Smart Sheets,
Monday.com, and
Microsoft Planner for those using Microsoft 365.
AI Integration in Accounting – This Week Accounting Today noted:
“The AI future of accounting isn’t coming, it is here.”
“AI is used in tax, in audit, in advisory; it’s used to draft letters, to write reports, to analyze data; it automates processes, it provides advice, it helps manage clients.”
Broader Consideration of “Diversity” – Firms could benefit from taking a view of “diversity” beyond race and gender to also include other attributes, such as age and neurodiversity.
Rising Cloud Access Costs – Firms are incurring increased technology expenses including higher costs of cloud-based applications and APIs. However, they typically view these as necessary expenses to support firm efficiency and effectiveness, especially with respect to providing outstanding client service.
AI in Learning and Development – Personalized AI-driven learning and development (L&D) can enhance staff skill development.
Highlights of Key Accounting Profession Trends
Cloud tech adoption is linked to greater firm growth
Automation enhances productivity and helps address staff shortages
Private equity investment in accounting is raising concerns
Soft skills, including effective delegation, are becoming more important
Providing a better onboarding experience for new staff can help increase staff productivity and retention
Merger volume is being driven by aging partners in small firms who don’t have adequate succession planning in place to continue the firm’s work without them.
Accounting firms are adopting artificial intelligence (AI) technologies for their potential to enhance productivity and even create new business opportunities.
“AI is used in tax, in audit, in advisory; it’s used to draft letters, to write reports, to analyze data; it automates processes, it provides advice, it helps manage clients.”
“The AI future of accounting isn’t coming, it is here.”
“The profession is not just willing but eager to find new ways to apply this technology for, at the very least, productivity and efficiency gains, if not entirely new lines of business.”
There’s a perception that DEI efforts are disproportionately focused on certain aspects of diversity, such as gender and race, while largely neglecting other areas, such as age or neurodiversity.
Accounting firms are incurring higher technology costs due to the increasing expenses associated with using cloud-based applications, particularly the costs linked to application programming interfaces (APIs).
“API costs have skyrocketed over the past few years, primarily because of supply and demand, in all different industries, not just the accounting profession.”
“Rising API charges have contributed to applications becoming, at the lowest, 5 to 6% more costly over the past year, though for certain solutions the price tag has grown 10 to 15%.”
“Our firm absorbs the increased API costs as part of our commitment to delivering top-notch service. We believe in investing in efficiency and providing a seamless experience for our clients.”
Spreadsheets remain a significant tool for small accounting firms, with nearly half of surveyed small firms still relying on them for workflow management despite recognizing their limitations.
The prevalence of spreadsheets does not indicate satisfaction with them, as a majority of professionals find them cumbersome and ineffective for improving workflow.
Efforts to address workflow issues often fail due to a return to old habits and difficulties in choosing and implementing new software, underscoring the complexity of improving operational processes.
Artificial intelligence (AI) is poised to revolutionize the tax profession by offering significant efficiencies and enabling tax professionals to focus on higher-value advisory services.
The introduction of AI applications in 2024 is expected to alleviate the staffing shortages plaguing the industry, mitigate risks associated with tax compliance, and enhance client satisfaction through faster and more insightful services.
CPAs are encouraged to embrace secure, purpose-built AI technologies to ensure the safety and prosperity of their clients and to capitalize on the opportunities presented by Tax Automation and Advisory Solutions (TAAS).
As the tax profession navigates the integration of AI, it is crucial to involve staff early in the process and to prioritize security measures to protect sensitive data.
“Artificial intelligence presents the most exciting opportunity for CPAs since the personal computer.”
Accounting firms are increasingly recognizing project management as distinct from engagement management.
Project management is essential for handling tasks like HR tool implementation, process improvements, and mergers.
Compared to engagement management, project management involves a broader scope, often including non-routine operations and varied team compositions.
Effective project managers need strong organizational skills, clear communication, the ability to influence others, and a positive attitude.
Firms are moving away from outdated tools like email and spreadsheets and instead are adopting platforms like:
Asana,
Smart Sheets,
Monday.com, and
Microsoft Planner for those using Microsoft 365.
These tools contribute to improved firm efficiency and effectiveness by supporting:
Transparency,
Task tracking,
Issue identification,
Deadline tracking,
Remote team support, and
Reporting.
“The Project Management Institute defines a project as ‘a series of structured tasks, activities, and deliverables that are carefully executed to achieve a desired outcome.’”
“Project management encompasses a broader scope and projects with a clear beginning and end.”
“Engagement management is primarily client-focused and revolves around routinely delivering client services.”
Although it has its uses in professional communication, email can consume more than a quarter of a workday without significantly enhancing productivity.
A cluttered inbox not only hampers individual efficiency but also impacts team and client interactions.
Alternatives to email, such as Asana, Trello, Smart Sheets, Slack, and Microsoft Teams, reduce reliance on email and can offer better solutions for specific communication needs.
Effective email management strategies include:
Scheduling email checks,
Turning off constant notifications,
Using inbox rules and filters,
Employing the snooze function,
Organizing folders, and
Unsubscribing from non-essential communications.
By optimizing email use and embracing other communication platforms, professionals can improve their overall communication efficiency in 2024.
“Turn off constant email notifications.”
“Utilize your email software’s rules to automatically sort non-urgent emails into specific folders.”
AI-driven personalization in learning and development (L&D) can tailor learning experiences to individual needs.
Avatars are interactive guides in training and can provide immersive and engaging learning experiences through simulations.
The integration of gamification in AI-driven learning can make learning more effective by enhancing engagement and competition.
“By leveraging AI, organizations can deliver content tailored to each employee’s unique needs and preferences.”
“AI and avatar-based learning solutions allow employees to engage with training materials at their own pace and according to their individual learning styles.”
“Incorporating AI and avatars into your L&D is more than a mere technological trend—it’s a paradigm shift in how organizations nurture and unlock the potential of their workforce.”
One way to overcome the challenge of enforcing consistent processes in accounting firms is to nurture a culture of accountability rather than imposing it.
Key metrics for accountability should be identified, focusing on quantifiable performance indicators that align with desired behaviors and outcomes including:
Financial performance,
Professional development,
Client relationship management, and
Team collaboration.
Cultivating a culture of accountability involves leading by example, defining clear metrics and expectations, and engaging in honest and supportive conversations.
This approach leads to a more efficient, effective, and harmonious workplace, where accountability is not just expected but embraced by all team members.
“Accountability thrives in an environment where expectations are quantifiable, i.e., key performance indicators (KPIs).”
“The objective of a crucial conversation isn’t to reprimand but to understand the root causes of the issues and to develop support systems that enable individuals to succeed.”
The 2024 U.S. Accounting Industry Report indicates that firms utilizing cloud-based technologies report higher growth but struggle to fully exploit cloud tools’ strategic potential.
It can be challenging for forms to implement cloud best practices while dealing with a variety of challenges including:
Pricing pressures,
Challenges attracting and retaining staff, and
Meeting clients’ expectations.
For example, many firms are prioritizing revenue growth, improved client service, and cost reduction for 2024 above their focus on the cloud.
Through its adoption of automation technology, the accounting profession is poised to dramatically enhance productivity and client experiences.
Although it’s possible automation could lead to job displacement for menial jobs, the vast majority of accountants view it as a useful tool that can streamline workflows and eliminate monotonous tasks.
With a significant number of accountants leaving the profession, the implementation of effective automation technologies can help firms do more with fewer resources.
Automation is not just about enhancing efficiency but is fundamental to the future of accounting, allowing professionals to focus on strategic, client-focused work.
“To alleviate accountants’ tedious—but essential—tasks, firms must adopt automation technology, an increasingly essential resource in the profession.”
“With more than 300,000 accountants having quit their jobs between 2019 and 2021, the ongoing accountant shortage underscores the importance of technology that enables firms to do more with fewer resources.”
“Accountants don’t want automation for automation’s sake. They want it to enhance efficiency and to help them enrich the client experience.”
In 2023 the public accounting landscape shifted due to significant interest and investment from private equity (PE) firms.
These firms targeted both large accounting practices and the accounting software sector.
This new trend raises concerns about the potential for conflict between the aggressive growth strategies of PE and the cautious, consensus-driven nature of the accounting profession.
Although delegating effectively is important for business growth and workload reduction, it remains a significant challenge for many.
There is a need for written processes, a competent and coachable team, and adapting delegation strategies based on team members’ experience levels.
It can also be helpful to use project briefs, which concisely describe the key elements of a project, and embrace imperfection in delegated tasks to facilitate smoother delegation.
“It’s a lot easier to delegate when you have written processes for your work and tasks.”
“Coachability is one of the most important characteristics I look for in my team.”
“The level of experience of the individual you delegate to will determine what and how you delegate tasks.”
“The main factor driving [accounting firm] mergers is the significant number of smaller firms with aging partners who are looking toward retirement, but don’t have the ‘backup’ on staff to fill their shoes.”
“There are probably 10 firms out there for every two people looking to buy.”
It is important to improve your firm’s onboarding experience for new hires to make them feel valued and integrated into the team, which can improve their productivity and retention.
Onboarding consists of a short-term orientation and a more extended onboarding process that begins from the moment a candidate accepts a job offer.
Key aspects to include in your firm’s onboarding process typically include:
Standardizing the onboarding process with templates,
Maintaining clear communication with candidates to avoid ghosting,
Avoiding overwhelming new hires with too much information, and
Assigning a peer buddy and mentor to each new hire to foster a sense of belonging.
“Creating an outstanding yes-to-desk experience is about more than ticking boxes on a checklist, though; it’s about fostering a culture of inclusivity, support, and seamless integration.”
