Intuit 2020 Report on The Future of The Accounting Profession

Intuit recently released their Intuit 2020 Report on the Future of The Accounting Profession. I was drawn to the opening sentences of the report:

“Imagine a World Where…
Accounting firms are not spending their time on gathering and entering client data.”

The reason this sentence caught my eye is because this was the same issue I was working on way back in oldie times (late 1980’s and early 90’s). People often ask me how I went from working as CPA to a software developer and then to a marketing consultant. I can tell you that the first leg of that journey happened because I hated having to gather (copy) and enter client data. While I was doing my impression of the Xerox monks (here’s a video for the kids http://bit.ly/e4MeAE), there was a computer sitting right there with all of the info I needed. I decided that if I could learn to program I could spend less time copying an more time being an auditor. I’m glad we are still moving towards that goal, but I digress.

The report identifies four key trends and explains how they will impact the accounting profession. The four trends identified are:

Shifting Business Environment Creates New Opportunities – Automation and access to cheap foreign labor is causing a drop in the demand for low level services. At the same time, specialization and collaboration are leading to increased opportunities for accounting firms. While low level work will continue be outsourced to cheaper foreign labor, there is another side to the globalization coin – as more and more U.S. small businesses sell their products and services overseas, there will be an increase in demand for accounting firms with global experience.

The shift to a workforce comprised of freelancers, contractors, part-timers and temps who are moving away from traditional employment will also change the way small businesses and firms are managed.

Demographic Shifts Change the Face of Professionals and Clients – Changes in demographics will influence how accounting firms interact with both their customers and their employees. An aging population needs specialized skills in areas such as financial, retirement, and estate planning. More people are starting their own businesses and need accounting services related to starting and running their business.

Demographic shifts, lifestyle changes, and technology will continue to change how we connect and communicate with customers and employees.

From Data to Decision Making, Technology Changes the Accounting Profession As technology expands and the amount of data that is available continues to rises, the demand for consulting to analyze business information, support decisions and provide strategic advice will also rise.

High-Tech Enhances High-Touch Client Outreach, Relationships and Service – Technology, social media, and mobile technologies will continue to become ubiquitous. Members of the accounting profession will need to change the way conduct business and attract new clients. This quote from the report will sound familiar to regular readers of this blog:

“This shift will make an accounting firm’s online presence critical and its mobile presence crucial, especially in efforts to market itself. Just as consumers use websites and social media to compare and review products, potential clients are already going online to choose their accounting service providers, a trend that will undoubtedly become the norm in the next 10 years. Firms and professionals who use online content to demonstrate experience, domain knowledge and thought leadership will be at a competitive advantage.”

As I implied at the beginning of this post, the trend may be slow moving, but it is moving. Prepare for your future success by identifying the high value services that your ideal customers need and create education marketing material to promote your expertise.

You can download the complete report from Intuit at http://about.intuit.com/futureofsmallbusiness/