How Experts See the Future of CPA Firms
In recent blog posts, Marc Rosenberg shared insights from experts about the future of accounting, and offered his own perspective on the best way for firms to engage and develop new partners for the future.
What experts are saying about the future of the industry:
Technology
- New technology will dramatically diminish traditional audit revenue.
- Technology will result in less need for lower level staff and a greater demand for experienced and knowledgeable staff.
- Artificial Intelligence and client accounting software will enable audit workpapers to be prepared automatically.
- Blockchain technology will be used to store transactions digitally, allowing them to be instantly verified and unalterable.
M&A
- M&A has become a new normal in the accounting industry. The best buyers have strong, empowered leadership. as well as identified and practiced core values.
Firm Culture
- A firm’s culture must be defined in writing, and core values must be practiced consistently, from the top down.
Predictions for the future
- Firms will operate 100% in the cloud.
- No more internal IT infrastructure for firms of less than 200.
- Firms’ core services will be cybersecurity auditing and consulting.
- Time-based billing will be eradicated.
- Wealth-management and tax prep will essentially be one service.
How to bring in and raise up young leaders for the future of your firm.
- Pursue revenue growth.
- Recruit young people to your firm (not just the one potential rising star).
- Offer rising leaders new challenges and opportunities with clients.
- Keep pace with current technology.
- Have a five-year plan, aggressive billing rates, a culture of accountability, and choose clients carefully.
- Have a well-crafted partnership agreement that helps you offer an appealing deal to new partners.