Midsized firms get major boost from technology

Today, more than ever, medium-sized accounting firms are under enormous pressure to pick up the pace of technology to work more efficiently, differentiate themselves from competitors, and effectively recruit and retain talent.

Several factors necessitate the introduction of technology among medium-sized accounting firms. As we have seen with our own eyes, the COVID-19 pandemic has pushed technology options for medium-sized accounting firms from “nice to have” to “need to have” because of the need to work and collaborate remotely. Digitization, automation, and cloudiness are among the many advances accepted by medium-sized accounting firms to scale and improve their performance and results.

The adoption of technology has been a major focus on the recent Accounting today webinar, where 73% of participants said that their firms needed to introduce technology. In our work with leading medium-sized accounting firms, we have learned that there are three key factors behind the desire to become the firm of the future.

Quality and efficiency

Prosperous medium-sized accounting firms are aware of technological trends and use this technology to scale their business, add new services and provide exceptional services.

They turn to technology to improve the quality of their customers and increase employee productivity. Technology-centric services provide more accurate audits, instantly find errors and anomalies, and can analyze vast amounts of data to give customers the insight needed to make data-based decisions. Optimizing and automating processes with artificial intelligence and machine learning allows firms to strengthen their core capabilities and scale their services quickly – while working more efficiently.

Better services and more productive teams are also different factors. Sophisticated platforms and solutions can set accounting firms apart from the competition while motivating teams across the organization.

Recruit and retain

In addition to working more efficiently to better serve their clients, another factor that drives medium-sized accounting firms to adopt the latest technology is their desire to attract – and retain – the best talent, which is key to their survival and growth.

High turnover rates can significantly reduce the profits of accounting firms, because to identify and attract new employees to the company requires significant money, time and effort. Attracting the best talent largely depends on how well these firms implement technology and change the way they work.

Working with spreadsheets, ledgers and filing cabinets is not something that employees enjoy today. From an employee’s perspective, the use of technology allows them to work faster, easier and more strategically. Having one advanced platform that is intuitive can be deployed worldwide, allows collaboration between teams and minimizes manual tasks, increases employee satisfaction and can unleash their imagination to add even more value to your customers.

Adapt and comply

The ability to easily adapt to changing tax laws, as well as tighter regulatory controls and increasingly sophisticated tax projections, also necessitate the introduction of technology among medium-sized accounting firms.

Having technology that takes care of compliance and manages audit risks is a critical factor in technology adoption. With ever-evolving regulatory requirements, especially in highly regulated industries, technological accounting systems can help firms keep pace with changing tax rules and corporate mandates. For example, smart platforms have the ability to automatically calculate taxes based on existing and evolving tax rules in different jurisdictions.

One thing is for sure: rules and regulations will continue to change. There will be new priorities in line with the requirements that will require professional service firms to stay ahead. Technology can simplify this process and ensure that firms comply with the latest rules.

The need for digital transformation is rapidly catching up with medium-sized accounting firms. There is a huge opportunity to provide better audits and tax services using the latest technology. Customers, employees and regulators are increasingly demanding the professional services industry anytime, anywhere. Medium-sized accounting firms can and should catch up with readily available tools to work more efficiently and quickly on a scale, providing clients with the best business results.

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