IN AN AGE OF AUTOMATION, ACCOUNTANTS MUST KEEP INNOVATING

BLOG By Rhys Madoc, CEO, UHY International September 2024

The adage that businesses develop, or die has always been true, but the phrase feels especially fitting during a time of rapid technological change.  

In accountancy, that change is clear to see. We are witnessing the replacement of labour-intensive manual activities with automated workflows at a dizzying speed. Many entry-level bookkeeping tasks have already been taken over by computers. With the growing sophistication of machine learning and AI, technology will soon be creeping into some higher-level functions, too.

MASTER TECHNOLOGY FOR BETTER SERVICE

How do we respond to this new technological revolution? One way is to make sure we are using new applications as effectively as possible, so we can give our clients the most professional and efficient service.

At the same time, we have to acknowledge that the automation of even routine functions is likely to be disruptive. AI and machine learning tools have the potential to increase competition and reduce revenue in a number of areas. Clients may choose to take some easy-to-automate activities in house.

If not, more and more competitors – and not necessarily accountants – will be bidding for the work, and fees are likely to fall.

So, we must continue to offer a complete range of services, and make sure our teams have the skills they need to adopt new technology and use it in the most beneficial way. And our ability as accountants to adopt new technologies and still to maintain the personal, client engagement is what often sets UHY member apart from many competitors.

But we also have to adapt, which means developing new service lines that create added value for clients, make full use of our spectrum of skills and are not in danger of becoming obsolete.

ACCOUNTANTS HAVE THE SKILLS TO EVOLVE

As accountants, we are lucky to have a number of potential paths to follow. Different UHY member firms have already expanded their service line offer to include non-financial auditing and reporting (especially in regard to sustainability and ESG), cybersecurity assessments and management consultancy.

Adding business advisory services to technical accountancy skills is a logical step for many firms. But a logical step is not necessarily an easy one. Developing new service lines demands detailed research and planning – it is by no means a quick win.

The first step is a shift in mindset. As an industry, we should be talking about offering new solutions rather than services, based on in-depth knowledge of what our clients need. That means researching the local market (because challenges in one jurisdiction may be different from those in another), polling current clients about the issues they face, and scanning the horizon for emerging threats and opportunities.

At its most basic level, we are talking about the need to develop a customer-centric culture, rather than one focused on service delivery. Firms need to be agile enough to create solutions tailored to the needs of individual clients, rather than offering the same limited range of off-the-shelf accountancy services to everyone who walks through our (physical or virtual) doors.

This important flexibility is best achieved by developing an agile base of technical and value-add services that can be mixed and matched to create complete client solutions.

GETTING AHEAD OF THE CURVE

None of this happens overnight. At a practical level, colleagues need to be trained. If you want to offer ESG auditing as part of a rounded solution, you need to have ESG specialists in house or a very good relationship with an external contractor. UHY leads the way on joined-up thinking towards developing a cohesive network of accessible experts providing solutions for our clients.

For every new service line, processes need to be clearly mapped and rigorous feasibility testing put in place. Considerable thought needs to be given to the ‘how’ and ‘who’ of service delivery, as well as the ‘what’.

It is imperative that nothing is offered to clients before it is ready. Everything from the technicalities of new services to the way you want to talk about them as a business should be in place before they are presented to clients. Do not throw away years of accumulated goodwill because of one poorly designed or hastily implemented service line.

The good news here for clients is that forward-thinking accountancy firms are already ahead of the curve. Throughout the UHY network, member firms are accumulating the skills, knowledge and technology to become business advisors and strategic partners as well as technical accountants. New client-focused solutions that combine accountancy and advisory services are coming on stream. UHY is embracing its future so we can help our clients embrace theirs.

Image credits:

Photo by Christina @ wocintechchat.com on Unsplash

Photo by Austin Distel on Unsplash

Photo by Austin Distel on Unsplash