Expected to go beyond the numbers, today’s accounting professional need to level up to provide insights and analysis behind the figures they report. The story behind the numbers matter, as well as the human-based insights that a professional firm can bring.
To stay relevant in these times of increasingly higher expectations, accounting professionals have taken a page from the likes of Netflix and Spotify and turned to subscription-based accounting.
Subscription-based pricing demonstrates to customers that accounting professionals focus on the value they provide—not the hours they bill—and opens the door for proactive opportunities to keep customers financially healthy. So, what does the movement toward subscription-based accounting mean for the industry as a whole and what types of business opportunities come with it?
The new business model mainstay
Subscription-based economy and services will be a mainstay of all professional organizations from now on, with services focusing on the nature of the customer relationship and encouraging businesses to always create new value for subscribers by offering new services or access to or transfer of knowledge.
When it comes to accounting, subscription-based services remove ambiguity around hourly billing practices and provides scalable, transparent pricing. But this business model consists of more than merely taking the annual price and dividing by 12.
Instead, it is about implementing an entirely different business model that switches from measuring billable hours to focusing on outcomes and value added.
Enhanced opportunities for proactive accounting professionals
With a host of information at their fingertips, from our family's names to our birthdays to when our kids are heading off to college, accounting professionals have endless opportunities to proactively take the reins when it comes to financial aid forms, retirement, and more.
For example, accounting professionals can proactively offer to help with financial aid forms for a family with soon-to-be college-aged children. Or become a more strategic partner by educating yourself on trends in a customer’s industry and providing advice on how these trends could impact their business financially.
Beyond the opportunity to be proactive, having a subscription-based, ongoing business relationship also incentivizes customers to be in regular contact, which helps to create an environment of “fire prevention” rather than “firefighting” after the fact.
The importance of automation
When switching to a subscription-based model, having the right technology to back up the move is crucial. Software that adapts to business needs can help smooth out the switch to subscription-based billing by creating easier and smarter payment management.
From reducing costs associated with manual billing to streamlining automatic subscription renewals, strong technology features take away the headaches that can come with moving to a new business model.
Ultimately, accounting software vendors will remain relevant only by focusing on putting a business model in place that creates value for customers. Think of it as a knowledge pyramid, with raw data at the bottom, information followed by knowledge in the middle, and wisdom at the top.
No system or technology can replace the wisdom of taking theory and critiquing it or applying human experience. Sadly, most businesses do not rise to the level of their aspirations but fall to the level of their systems.
By committing to subscription-based pricing, accounting professionals can go beyond the numbers and serve as critical, value-add players in their customers’ lives.
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Ed Kless is Senior Director of Sage Accounting Professionals Solutions. Kless, who joined Sage in July 2003, facilitates the Sage Leadership Academy, Sage Consulting Academy and is the liaison to the Sage Leadership Academy Alumni Association. He also hosts the "Souls of Enterprise Podcast," which offers business and leadership thinking for entrepreneurial organizations.
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