technology is key for competitive advantage.
by 卡塔尔世界杯常规比赛时间 research
the 2024 accounting industry report from wolters kluwer cuts through a lot of the underbrush of sentiments and anecdotal evidence about the state of the accounting business today. backed by statistical data, the report presents a some significant truths about the state of the industry.
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and the general state is good. most firms are growing, profitability is up, new services are surging, and serious practices are making efforts to improve the quality of client experience.
here are some of the most notable facts.
revenue is mostly up, rarely declining.
almost six out of 10 tax and accounting firms – 59 percent – reported an increase in revenue last year, and another 28 percent saw no decline. seventeen percent of midsize firms and 22 percent of large firms achieved some of this growth by outsourcing tax prep and accounting services.
profitability is increasing parallel with revenue.
profitability is almost keeping up with revenue growth, with 55 percent reporting an increase and 31 percent holding steady. profitability may be tempered by an increased effort to improve client experience. it may have been affected by a change in pricing model, reported by 10 percent of firms.
more firms are improving client experience.
over the past three years, overall, 31 percent of firms have improved their clients’ engagement experience. this is especially true at 49 percent of large firms. half of midsize firms have started meeting clients virtually, as have 42 percent of large firms. smaller firms are half as likely to meet that way. just 23 percent of small firms are using secure file exchange portals, less than half the 50 percent of midsize firms that do so.
offices and cultures are gradually changing.
eleven percent of firms have seen office footprints shrink in the last three years. thirty-five percent of midsize firms have been reassessing or even disengaging clients, but the numbers are close to 20 percent for small and large firms. with staff shortages plaguing the industry, only 5 percent of offices have been cutting hours or freezing hiring, though the number’s twice as high at midsize firms. only 15 percent of midsize and large firms have considered merger or acquisition recently, and a minuscule 5 percent of small firms have done so. only 8 percent overall have created additional services, but this is more true at midsize firms (17 percent) and large firms (14 percent).
many firms are improving efficiency.
a fifth of all firms are tweaking operations to lower costs and increase profitability. only 19 percent of small firms are doing so, but 29 percent of large firms are taking such actions. sixteen to 23 percent have implemented remote/“no touch” tax preparation, with the numbers increasing according to firm size. new cloud-based solutions are being implemented much faster than new on-premise solutions, with percentages ranging from 14 percent to 33 percent for apps in the cloud but only 4 to 10 percent for apps in the office, with numbers increasing parallel with firm size.
high-growth firms are more likely to be using technology to forge ahead.
high-growth firms are consistently if not extremely more likely to be using technology for competitive advantage. comparing overall numbers with the high-growth exceptions, we see
- 44 vs. 50 percent (overall vs. high-growth) use a tax solution.
- 28 vs. 33 percent have a client portal.
- 17 vs. 23 percent use a document management solution.
- 12 vs. 17 percent use a practice management solution.
- 12 vs. 17 percent use a fixed assets solutions.
- 6 vs. 10 percent use a project management solution.
if these tech-based numbers seem low on both sides, it’s because 90 percent of respondents are from firms with fewer than 20 employees – that is, firms less likely to need or have expensive solutions.
in her introduction to the report, cathy rowe, senior vice president, foresees big changes coming as technology improves everything from efficiency to client experience. “in today’s dynamic landscape of change and opportunity,” she writes, “the future belongs to those who embrace technology and innovation as essential parts of their firm’s strategic plans for success.”