What's In Store for the Accounting Profession?

*The following includes excerpts, reproduced with permission, from an article by Accountants Advisory Group. See link to the original article at the end of this review.

Following are some predictions and trends that you may wish to consider in your strategic planning for 2018 and beyond: 

• Client fee pressures, increased competition for quality staff and clients, rising staff labor costs, increased regulations, and client demands will force firms to carefully examine their mix of services, industry concentrations, and niches. Client engagement profitability will be more scrutinized and evaluated while making partners more accountable for increased realizations.
• Firms that have grown through consolidation of aging practices will begin to address intensified succession planning issues in terms of transitioning clients to qualified partners who can play the trusted advisor role and retain transitioned clients.
• Consolidation of firms in the country will continue at a faster pace. Firms will continue to acquire consulting and advisory companies that complement their traditional services.
• Managing Partners and Executive Committee members will be held more accountable by their partners in their ability to lead and manage successfully and to achieve the goals and objectives as documented in the firm’s strategic plans.
• There will be an increase in the number of firms hiring lead generator/business development professionals to compete with larger firms and supplement the practice development efforts of their partners.
• The need for diversified multi-faceted marketing professionals will become even more necessary to maintain a competitive edge in the local marketplace.  As a result, more firms below the Top 200 will outsource their marketing and practice development programs to consulting companies.
• As the lack of quality professionals continues to be an obstacle to growth, internal marketing professionals’ role will continue to expand and increase in the areas of attracting quality staff, partners, and M&A candidates.
• Rapidly changing technology will play an even more significant role in marketing professionals’ programs and plans.
• More firms will evaluate their audit processes and procedures to make better use of data analytics and continuous auditing capabilities and related software.
• The partnership structure will continue to fade away and be replaced by a more corporate type structure. More firms will hire professional COOs to assist the partners in managing their organizations.
• Partner compensation will be more geared toward higher levels of profitability (and less top line emphasis) and by results-driven contributions to the future success of the firm.

 For the complete article, read “Predictions for 2018 and Beyond.”

 From RedZone Blog, Accountants Advisory Group, December 2017, http://www.accountantsadvisory.com.