Ringing in the new year means it’s time to set goals for a new and better you—and that goes for accounting firms too. CPAs are all about preparation, and there is no better time than now to prepare to weather storms and capitalize on sunny skies when they come. Take advantage of new and exciting tools for CPAs to give clients critical financial advisory services.
If companies were hesitant to embrace technology in the past, 2020 showed just how vital keeping up with advancements is to their business. Follow these six tips to be proactive in 2021 and keep your business ahead of the game.
Improve IT Systems
It’s not often that the world changes overnight, but 2020 did just that for businesses everywhere. One day, coworkers were huddled around a conference room table; the next, they were working from home.
The major changes that hit shined a light on which companies had the IT infrastructure they needed. While some could put virtual desktop infrastructure and artificial intelligence to use and provide secure remote access for employees and clients, others found themselves just treading water. In a recent study, only about half of accounting firms reported using cloud technology, but 67 percent said the Cloud could make their work easier.
It is clear that if businesses are not looking ahead in every aspect, they will be left behind. Even with 2020 in the rearview mirror, difficult days are still ahead. Upgrade and enhance your IT systems to ensure you are ready for anything that comes your way.
Embrace Automation
It’s easy to see automation as a tool that can make CPAs outdated and unnecessary for their clients. It should be seen as just the opposite. A CPA’s skills are too important to be spent working on tasks that could be automated.
Embrace automation technology and use it to take care of mundane and time-consuming tasks like data entry. When you outsource payroll, expenses, building reports, and other jobs to artificial intelligence, you’ll have more time for duties that require human intelligence. It will increase your productivity and value as you have more resources to provide your clients with advice on financial strategies and innovation.
Automation doesn’t remove the human element from accounting. Rather, it gives CPAs the power to focus their efforts on the truly human aspects of financial advising: interpreting their clients’ financial data and providing valuable insights.
Expand Advisory Services
There’s nothing like a major worldwide pandemic to give you a good look at whether your business has what it takes to survive. Accounting firms and their clients alike were faced with this assessment in 2020, and CPAs quickly found their clients needed more from them.
Expand your offerings to include personalized advisory services that will minimize clients’ risks and enhance their opportunities. Clients want to future-proof their business, and they need their accounting firms to provide more advisory services to help them along the way. They don’t just need the traditional financial reports of the past: They want to know what those financial reports actually mean for their business and how those numbers can help the business grow and have staying power.
CPAs play a crucial role in helping a client’s business grow and succeed, and they need to provide in-depth assessments of their client’s financial health. Be adaptable, and have the tough conversations needed to help clients be adaptable too.
Welcome New Technology
Some fields jump on board with new technology a little faster than others—and accountants can sometimes lag behind in this area. Technology is always improving and advancing, even in accounting. Trying to play catchup hinders your ability to give clients what they need. Stay ahead of the curve and don’t be afraid of new trends. Watch out for new advancements and be flexible so you can incorporate technology that will help you and your clients stay on top.
Simplify Sophisticated Data
Advancements in technology like artificial intelligence and automation have provided a wealth of financial data for clients. All of that is wasted, however, if the client doesn’t understand everything that is being thrown at them. Give financial advice in easy-to-digest data with detailed visual reports. It is up to CPAs to use their vast knowledge and expertise needed to take this extensive and complex data and compile a simplified report that clients can use to make sound financial decisions. Visual reports make these insights more clear and concise for clients. What’s more, utilizing automation to build a report allows CPAs to devote more time to crafting vital analysis and advice.
Be Proactive about Gaining New Skills
Technology is more intuitive for you than it ever was for your parents—and yet, your kids seem to grasp everything even faster. Whether you are a Gen Xer, a millennial, or a member of Generation Z or any other age group, chances are there will be a day when you find yourself a little behind the technological times. CPAs will find themselves in this position as well, as new tech resources emerge in the field. Don’t let yourself fall behind the curve: Immerse yourself in continuing education courses to stay fresh and knowledgeable about new tools and ways to serve clients.
Through the lens of a worldwide crisis, 2020 showed CPA firms their strengths and weaknesses in a big way. Use the lessons learned to set goals and forge ahead in the coming year. Embracing technology and staying ahead of advancements will help accountants and their clients be successful through the ups and downs.
Author Bio: Justin Hatch is the co-founder and CEO of Reach Reporting; the leading visual reporting software on the market. Hatch is an industry expert in business management, specializing in software development and financial reporting. Hatch co-founded Reach Reporting in 2015 and launched in March of 2020, experiencing a growth rate of over 30 percent per month.