Of course, accounting firms, like all other businesses, are confronted with challenges. However, to solve any problem, you need to be able to define specifically what the problem is before you can find out how to deal with them. To help you with identifying these problems, let us look into the top business challenges for accounting firms.
Top challenges for accounting firms
The first challenge is attracting and developing new business.Research reveals that 70% recognize this as the primary challenge for accounting firms. Finding new clients appear to be an increasing concern for firms in the industry as international competition mounts. So as not to be hampered by such obstacles, you should be able to set objectives which will allow your accounting firm to grow organically.
Another challenge is being able to find and keep talents in your company.Competition has also made it difficult to look for good people. Neal Jensen, another business consultant, indicated that online businesses, who can also lure talents and offer the advantage of virtual office setups, have further intensified competition. Jensen’s advice is generally for most businesses, but this concern appears to cut across industries. Building the company’s reputation is one way to attract good employees to your firm. Making sure that the company acquires strong talent and develop leaders in them is a surefire strategy. Mendoza, in her article in the Denver Business Journal, indicated that accounting firms in the area respond to this challenge by providing learning and advancement opportunities to talented people. Moreover, these firms specified that good people are also encouraged to innovate, collaborate, and work flexibly. The accounting firms in this paper also indicated that the promotion of health and wellness also attract and retain talent in the firm.
A third challenge involves leadership and internal change issues.Managing accounting firms require much energy and resources in dealing with this challenge. This was a reason the company’s reputation would have to be strongly established so that the right talent could be developed into good leaders. Frederiksen referred to fostering Visible Experts in the firm, who will serve as builders of the company’s reputation in the industry.
The next challenge involves technology.The business challenges for accounting firms seem to be further tested since technology has evolved rapidly and transformation is critical for accounting firms. More so, keeping pace with the technological advancements considering the client’s demands appears to be one of the major obstacles. Accounting firms need to learn how to use technology as a means to leverage their marketing to differentiate the firm from the competition. In the Denver Business Journal article by Mendoza, all accounting firms in the study pinpointed to technology as a major issue. You can see how the managing partners of these accounting firms expressed their views on the challenge posed by technology.
The fifth challenge is meeting customers’ demands and expectations.Related to the challenges presented by technology, your customer’s demands and expectations would have to be met necessarily. Your accounting tools or software should be able to address the clients’ needs and match the nature of your clients’ business operations. Keeping client’s satisfied should require great attention from your accounting firm. Both technology and innovation should be used to create opportunities from the financial data and thus, provide your clients with insights to improve their operations.
ConclusionGetting to know the major business challenges for accounting firms should help you prepare for plans or strategies that will ensure the way to your firm’s success. Being able to realize what other accounting firms confront should begin an understanding of how your firm stands against these issues or how you fare. Obtaining more insights from consultants and similar companies should clarify your approaches to managing your firm. At the same time, this information could also be your leverage to respond appropriately and position your accounting firm with better competitive advantage.
Oojeema is Philippines’ FIRST online accounting software designed to simplify your accounting processes.