accounting leaders say these are the issues firms must face.
by 卡塔尔世界杯常规比赛时间 research
as gale crosley of crosley+consulting notes in the 2022 rosenberg survey, we are in the midst of “an unusual year of high uncertainty, unpredictability and sapped energy among our profession’s leaders.”
more trends & outlook for 2023: the biggest change in accounting? personnel | look who’s making money now | merger minded? go out on top! | capacity strategies drive change | who wants to be partner? not enough | private equity heats up m&a | top five trends | compensation gets creative | cpa partners rejoice on surging fee growth | the office is over | accounting firms face up to private equity | irs hires will add pressures | consolidation brings challenges, opportunities |
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yes, indeed. the profession, once characterized as staid and stable, has been hit by a confluence of what crosley calls “four major thunderbolts,” to wit:
- disruptive technologies
- shifting economic conditions
- non-traditional competition
- fast-moving regulation
to which she adds a milieu of
- extensive talent constraints
- work-from-anywhere options
- unexpected market demand
- private equities investing in firms
- baby-boomer retirements
note that none of these has anything to do with accountancy, the actual crunching of numbers. the business of a cpa firm is now in a swirling sea of change that cannot be ignored.
consequently, every firm, large and small, has to face myriad questions, one of which is which questions need to be answered and which can be safely ignored.
in addition to the survey’s trove of numeric cpa firm management data are comments by the industry’s top consultants, whose job is to look beyond traditional accountancy to assess its trends and wider context.
here are some of the questions and concerns they raise.
- should a given firm remain independent of outside investors? private equity companies are showing interest in cpa firms. is the potential leverage worth the loss of independence? what remains unknown in the unexplored world of business?
- should we consider merging up? the reasons are many:
- efficiencies of scale
- lack of new partners
- to make retirement possible
- profitability
- effectively acquire staff
- access better technology
- should we acquire another firm? it’s a buyers’ market. now’s the time. but is it wise to buy another firm’s problems?
- will today’s booming business continue? there are plenty of potential clients out there. many are willing to pay higher fees. many can’t find an accountant. many want advisory services. but how long will this last?
- how do we balance growth and capacity? oh, the irony! just as growth becomes most possible, capacity has never been more limited. tech’s expensive. rules and regs are complicated. professionals are hard to find.
- how much should we invest in technology? tech isn’t cheap, and it’s always changing. when are the changes really an improvement? can a firm afford to buy the latest? can it afford not to? and which tech’s right for you – tech for accounting or tech for cas?
- is it time to go remote or to come back to the office? the potentials of remote work range from reaching a vast new talent pool to savings in office space. but what’s lost along with the loss of in-person contact?
- should we expand into cas advisory services? cas is the trend. the potentials are huge, but it calls for a major shift in business strategy to consider new kinds of marketing, technology and personnel.
- what happens when we can’t replace a partner? the boomers are retiring. professionals are fleeing public accounting for the corporate sector. there’s a reluctance to assume the responsibilities of a partner. what happens to a firm and its retirees if it becomes hampered or unviable because of a lack of leadership?
- how can we retain talent? retention has never been more important, given the shallow talent pool. what do staff and pros want? more money? less work? better benefits? time off? flexible hours? work from home? cushy office? better cpe? fast track to partnership? picnics in the spring?
- how much can we stress personnel? staff and professionals are being stretched to their limits. too little help. too many clients. so many changing regulations. so much tech to learn. and there are just so many hours in the day. something has to give.
- do we need a new business model? your business model is probably the same as 20 years ago. but the business world isn’t the same. it’s time to do some thinking. if there’s a holistic answer to all the above questions, it’s in creating a new – radically new – business model.
maybe you don’t need a new business model and overhauled business strategy. but you do need to think about it.