change is needed in mindset and skillset.
by scott moore
the rosenberg national survey of cpa firm statistics
leading firms will continue to proactively evolve their business models to include more digital process automation, bundling of services with subscription-style pricing, strategic outsourcing, and upscaling of talent along the client value continuum.
editor’s note: every year, the 2024 rosenberg national survey of cpa firm statistics asks the profession’s top consultants two sets of questions:
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- how do you think the next 12 months will unfold? trends? predictions? other thoughts?
- how would you assess the last 12 months? trends? observations? struggles?
more: accounting firms must consider capital resources | firms not keeping all their clients | accounting still short on staff and students | artificial intelligence plays role in analytics, optimization | challenges for the accounting profession: private equity, offshoring, training new hires | recalibration is key for accounting profession | people development still a concern | focus on intentional growth | accounting firms upshift to corporate model | tech anxiety paralyzing some accounting firms | what’s going to happen? lots, say consultants | growth and complacency must concern accounting firms this year | solving staffing requires intention | how accounting firms are handling the staff shortage
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this will set the pace for the profession as a whole, as more firms follow suit in these areas in their efforts to keep up with client expectations and market dynamics. an increase in m&a activity and consolidation will increase this effect, as strategic investments target firms with the highest potential to achieve maximum market value.
the evolution of the client-centric, trusted advisor approach will further shape the mindset, skillset and working knowledge required for success and advancement in the profession. as firms grow larger and broader in their capabilities, so will the need for their people to be able to effectively represent, align and deliver those capabilities.
comprehensive business acumen and consulting skills will become essential as client service evolves beyond traditional analysis of past results – to the delivery of forward-looking, strategic advice to optimize future outcomes. this will be supported by increased initiatives in talent development, technology and communication, driving the transformation to a more holistic, client-centric, advisory-oriented approach.
leading firms are placing significant emphasis on the creation of high-value client relationships. investments in expanded advisory capabilities, talent development, technology and collaboration have been increasing to support this shift.
meanwhile, firms have been settling into what it means to be a hybrid workplace and recognizing that this shift is about adapting not only the firm’s own productivity and collaboration efforts, but also how it interacts with client organizations that have evolved as well.
we are seeing somewhat of a correction to the generous investments and concessions aimed at luring and retaining talent, as some firms are experiencing a new issue – declines in productivity. the emphasis is tilting from primarily achieving staffing levels in terms of headcount, to more about the productivity of the staffing level achieved, relative to expectations.
faced with these recent challenges in traditional workforce models, firms are increasing exploration of new ways to bridge capacity gaps and scale core capabilities. many are having success with outsourced staffing, both domestic and international, and larger firms are investing in their own overseas organic staffing expansions.
additionally, firms are carefully monitoring the rise of automation and ai applications to determine where these technologies pose opportunities to enhance client experiences, increase efficiencies and reduce staffing dependencies. at the same time, firms are recognizing associated risks that must be mitigated.
one response to “business models continue to evolve”
paul foster
your comments are right on! having gone from owning a compliance firm to the startup world and now re-entering as a disruptor – seeing how innovation happens was insightful. the enemy of making the needed changes is the inertia of the status quo. i hope firms can explore “skunk works” or other disruptive innovation strategies to drive the change efforts. the new business models in many ways are the opposite of traditional firms should be a fun year!