What's Next for Innovative CPA Firms?

Source: Journal of Accountancy 

In this article, Journal of Accountancy shares results from the CPA.com Innovation in Public Accounting Survey. According to the survey, CPA firms (especially those that have embraced cloud technologies) view new client services as their top innovative priority for the next year to 18 months.

Other survey facts:

• The online survey was conducted in October 2015; 409 firms responded.
• Of participating firms, 178 were considered “early majority,” meaning they have pursued a cloud-based practice or have made strides in client advisory services.
• The other 231 participating firms were considered to be in the “general group.”
• The early majority group included more large firms (20 percent) than the general group (10 percent).
• Both groups view new client services as their top priority.

According to Amy Radin, strategic marketing consultant and innovation expert, the good news is that firms recognize the need for change. However, a “sizeable minority” of general group firms believe that change may not be needed for another five years. Radin warns that clients may not be that patient.

What are the biggest barriers to innovation?

• Firms from both groups rated time and talent as their biggest innovation barriers.
• Early majority firms view processes as a more significant barrier than strategy.
• General group firms put a greater emphasis on strategy issues as a barrier.

Many firms in both groups did not identify a threat from specific competitors. In response, Erik Asgeirsson, president and CEO of CPA.com, encourages firms to pay attention to client expectations or firms may find themselves facing unanticipated competition.

For the complete article, read “CPA firms place new services atop innovations priority list.” 

From Journal of Accountancy, December 8, 2015, www.journalofaccountancy.com/news/2015/dec/.