the world is flat

montage of a pretty eye with the world continentsthe cloud changes everything, even the way of the dinosaur.

by rob nixon

i have a theory as to why most clients of an accounting firm are within a driving radius of the firm.

more on strategy: will the internet replace cpas? | how offshoring is shaking up accounting | the profession disrupted: compliance commoditized
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my theory is that way back when(ever) the clients used to travel to the accountant’s office with their “stuff” (cashbooks, receipts, livestock headcount, paperwork, etc.). they’d get dressed up in their sunday best for the occasion, have a pleasant conversation about the year that was and then leave.
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will the internet replace cpas?

"search for solution" on computer screen3 steps to remaining relevant.

by rob nixon

it seems we use the internet for everything we want or need to know!

more on strategy: how offshoring is shaking up accounting | the profession disrupted: compliance commoditized
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addresses, companies, people, products, concerts, store opening times, weather, golf handicap, cycling routes, friends’ whereabouts (or what they are eating – yuk) and the big one…”how to do” everything. the internet seems to be our first port of call for anything we want to know or find information on.
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how offshoring is shaking up accounting

young businessman on phone with colorful world map backgroundsome firms use this tactic to focus on the work only they can offer.

by rob nixon

manufacturing companies have been using low-cost labor in developing countries for decades to produce their products. just look at the clothes on your back. i bet very few of them are made in the u.s.a.!

more on strategy: the profession disrupted: compliance commoditized
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the reality is that because of escalating labor costs, most western countries have priced themselves out of markets by attempting to produce the product locally.

up until a few years ago, it was primarily “hardware”-based manufacturing companies using this resource. now we are seeing “services” companies embrace the outsourcing trend with fully resourced teams.
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the profession disrupted: compliance commoditized

house on crack shows housing market declinethe accounting profession globally is being disrupted right now and most accountants don’t even know it is happening.

by rob nixon

there are three main areas that are being disrupted in the profession:

  1. compliance is being commoditized by technology,
  2. labor is being sourced from less expensive countries and
  3. clients are using the internet for your advice.

these three market forces will only escalate, and if you do nothing about it, revenue, profit and business value will erode.

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compliance is a commodity

cloud data is the way to go.

by rob nixon

statutory compliance or “have to” annual accounting is mandated by the government as a task you need to do with your clients.

more on strategy: the world is flat | will the internet replace cpas? | how offshoring is shaking up accounting | the profession disrupted: compliance commoditized
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the main reason the government agencies want you to do this task is so you can accurately (or thereabouts) collect the right amount of money for them. the government agencies are not that interested in the accounting profession.

the secondary reason they want you is to check that your clients are complying with their rules.
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