Four Things Accountants Must Do to Keep Up

Luca Pacioli, an Italian mathematician and Franciscan friar, is widely known as the “Father of Accounting” for publishing 36 chapters on the double-entry accounting method used by Venetian merchants during the Italian Renaissance. His book, Summa de Arithmetica, Geometria, Proportioni et Proportionalita (which translates to, “Everything about Arithmetic, Geometry and Proportion”), was written as a textbook for students in Northern Italy at the end of the 15th century. Pacioli’s documentation of double-entry accounting and ledgers taught entrepreneurs of the day how to conduct business using timely and accurate financial information, and it established the fundamentals of accounting still practiced today. 

Pacioli’s fundamentals were only feasible thanks to the written numeral system and the abacus developed before that. And since then, the industry has seen further and more ground-breaking developments including the introduction of the typewriter, then computers, and later the internet. With each of these milestones, technology not only impacted how accountants handle financial information but also how they interact with their clients. 

With the changing technological landscape, what must accountants do to stay competitive in the future, and how will technology change the future role of the accountant?

1.  Increase Added Value Services to Retain Clients – Compliance work is getting more and more standardised and streamlined due to technological advances. If you can shift time and resources from these commoditised services, focus more on becoming an indispensible adviser. It is no light commitment and might require a paradigm shift by some, but balancing compliance work and helping clients make strategic decisions to protect and grow their business is the role of the accountant for the foreseeable future. 
   
   Craig Weeks, a consultant to accountancy firms and author of the Accounting Practice Business Development Blog, shares what he has seen in the industry and what role he thinks accountants should play, “One challenge the accountancy field faces today is coming to grips with the incredible amount of financial detail their clients are both receiving and generating. The new frontier for accountancy services is filtering, assembling, prioritising and then presenting the most vital data in a format that is readily usable by the management team. ProfitCents is a tool that quickly analyses a business’ financial data and generates easily understood narrative reports.”   

    

2. Use Technology to Differentiate Your Firm – It is normal now for the buying process to begin online with a search engine. What makes your firm different from the firms listed ahead of you in search results or from the other firms in town? Do something to stand out when speaking with prospects, and prospects will spread the word. For the initial meeting, familiarise yourself with their industry and provide something tangible to take with them other than your marketing brochure, such as an analysis of their business and industry.
    
   Many firms, like Ghiaci Goodhand Smith Limited, based in Brighton, have embraced the opportunity to utilise ProfitCents to differentiate their overall services to both current and existing clients. Mike Lewis, Managing Director, says: “ProfitCents allows us to efficiently and effectively become the ‘trusted adviser’ that my clients want us to be, and is also a very valuable differentiator when trying to win new clients.”     

    

3. Build an Online Presence – If prospective clients start their buying process online, it is important for your firm to at least be among search engine results. That is difficult, though, if your firm does not maintain a website. According to a 2010 MAP Survey, 33% of accountancy firms still don’t have an active site. To attract new clients in 2011, you have to meet prospects where they are—online.     

    

4. Be Conscious of Your Clients’ Time (or Lack Thereof) – Business owners are busy running their business, so be conscious of their time and make things easy for them. Technology can help to present information to your client in a more efficient, effective, and easy to understand manner: 
   
   For London-based practice Fitzgerald and Law, ProfitCents is one such way they are presenting financial information to their clients to add value and uncover additional advisory opportunities. Jamie Hawkins, Manager of Corporate Assurance and Advisory and Fitzgerald and Law commented, “ProfitCents allows me to communicate the strengths and weaknesses of the business to the client in an easy to understand and presentable format. One of the first clients we used ProfitCents with told us that this report helped make their financial year!”

Ultimately, when evaluating how to move forward with technology in your firm, it is vital to understand your market, clients and the strengths that make your firm unique. Given how far technology in the accounancy industry has come since the time of Pacioli, it is no longer an option just to provide timely and accurate financial information. Exploit new technologies in your client interactions, and you’ll find that your firm is better prepared to gain and retain valuable clients. 

To learn more about ProfitCents please contact:

Ryan Gaus
+44 (0) 203 514 3609 ext. 588 
email ryan.gaus@profitcents.co.uk

Or watch the "ProfitCents - Value Added Business Development Reports" webinar