The world of business accounting is experiencing rapid transformation as technological advancements continue to revolutionize how businesses manage their finances. It’s vital for business accountants across the globe to keep up with the changing trends. Otherwise, your practice may not stand the test of time, but how can you achieve this?
In this article, we explore how to ensure your practice transitions to digital accounting successfully.
Set Aside Time to Strategize
You cannot think strategically about your business while serving your clients at the same time. Hence, it is imperative that you make the time to focus on just your business’ strategy.
Pause and take an objective look at your accounting practice as you try to answer these questions:
- Do I have the right clients?
- Do I have a good team?
- Do I have right workflows and processes that guarantee success in the next decade?
Evaluate the Services You’re Offering
With digital accounting, you have the opportunity to offer a wider selection of more lucrative services. In fact, you have the chance to take a break from compliance services and take up the more valuable advisory role. What does this mean?
By investing in digital accounting, you will be able to not only broaden your services but also incorporate new revenue streams into your business. The UK’s average revenue growth is 3%, and digital accounting is having a significant impact on revenue growth with some businesses having double-digit percentage growth.
Invest in the Right Technology
Technology is an integral element of any digital strategy. Hence, it’s imperative that you choose the right software for your practice if you want to prosper. How you use the software will depend on several factors, including:
- The size of your business
- Your areas of expertise
- Your client’s sector and niche requirements
You should take the time to do a cost-benefit analysis and be sure to consider where your firm will be in the next couple of years. You may be scared of the fact that changing software could disrupt your business at the beginning.
Simply plan for interruptions and some challenges. It is also important to manage your team’s expectations. Let them understand the benefits that the change will deliver. Likewise, your clients should be prepared for the changes.
Train Your Team
Once you have the right technology, it’s imperative that you have your team trained up. The good thing is that many digital accounting solutions offer free online learning resources to get your team trained up and ready to serve your clients in the best possible way. You should allow your team enough time to get the right training for their role and evaluate progress along the way.
Segment Your Customer Base
If yours is a small business, you may not have the capacity to handle all your clients at once. Hence, it’s advisable to segment your client base and be sure they are ready to embrace digital accounting. You should start with in-house clients. This is an excellent way to enjoy immediate gains without the need for clients to alter their own setup.
Then, you can move to clients who handle their own bookkeeping. These clients will be ready to capitalize on a software that promises to streamline how they work and allow them more time to concentrate on their business.
In the next couple of years, every business accountant will have to embrace digital accounting in order to thrive in their practice. This article outlines how they can do that successfully.