A Look into the Future of Accounting: How US CPAs can Become Future-Ready
Sep 11, 2020
The year 2020 has emerged as one of the most challenging years in recent history, with the whole world responding and looking to recover from the health and economic challenges posed by the COVID-19 pandemic. COVID-19 has impacted every industry, causing businesses to revise budgets, amongst many other operational matters, in order to manage the effects of the pandemic.
With the economy reeling from the coronavirus pandemic, accountants find themselves in an unprecedented position to help create a new normal for both themselves and their clients.
Sage recently released its fourth edition of annual ‘Practice of Now research report’ where more than 1,000 US Accountants participated in the survey. The finding revealed that accountants are increasingly being called upon to provide wider advisory services to help their clients minimize loss and expedite financial recovery. This year’s report reveals that the accounting profession is by-and-large already responding to positive disruption.
Tom Hood, CEO of the Maryland Association of CPAs (MACPA) said: “COVID-19 has really emphasized the importance and role of accounting in business and overall corporate growth strategies. If all you’re doing is compliance, then you’re not helping to add value for the client or creating what’s needed in this economy. Everything that’s happening, all of the relief programs, are coming through the accounting systems – you are experts in the language of business and needed now more than ever to help businesses navigate through the COVID-19 storm.”
Key statistics and findings
Across the United States, 79% of accountants say that client expectations have expanded to include the provision of business and finance consultancy, while 86% say clients are increasingly demanding greater flexibility within their budget to access the services of most importance to their business.
The survey also shows that U.S. employers are continuing to reimagine what the ideal accountancy candidate looks like. More than half of respondents (54%) believe candidates should also have financial advisory skills, while one third (32%) believe candidates should also have broader business management skills.
Despite being a highly desired skill, only 34% of respondents currently offer training courses on financial advisory while only 29% provide training to develop project management skills. As firms continue to meet the changing demands placed on accountants, focusing on employee development will only increase in importance and ultimately provide a competitive advantage.
The overwhelming majority of accountants (91%) believe new technology delivers value to their business, and 44% describe themselves as early adopters – compared to only 35% last year.
CPAs must take advantage of areas they can leverage to improve efficiency and reduce costs in order to allow more time and human resources to focus on providing advisory services to clients on more complex areas and most importantly training staff on these areas.
Bringing more efficiency to the daily workflow while also scaling productivity, will become the focus of many businesses in the future. Working with an experienced outsourcing provider helps companies overcome productivity challenges, streamline operations and add additional resources that may be lacking in-house.
There are one-time opportunities emerging from the disruption of the pandemic, therefore it is vital for CPA to re assess their strategies and way they operate. Through outsourcing, they can create a pool of additional funds, from the elimination of expenses from accounting, payroll and tax returns preparation processes, thus freeing their resources and time and enabling opportunities for growth and innovation.
The outsourcing model reduces expenses by eliminating the need to hire or train new employees for the basic bookkeeping, accounting, tax services and increase occupancy costs and investment in additional office space, equipment, training etc. Having a large pool of outsourced “on-demand” talent means companies can rapidly scale their workforce without the need to hire additional full-time employees and increase their overheads and their investment in office space and equipment. Using outsourcing creates new opportunities and makes better use of existing talent that helps firms get the most out of their current workforce.
SandMartin – More than 20 years in Accounting & Tax Offshoring
By our very nature, SandMartin’s solutions are designed to provide services remotely. With remote access to software and data, combined with communications through email, text, telephone, and video conferencing, you will have access to a virtual accounting team that is available anywhere and anytime.
Additionally, because we deploy teams, not individuals, and because we have already leveraged a work from anywhere model for more than 20 years, our operations have a very low risk of being impacted by the coronavirus and can support accounting firms during the busy tax season and times of staffing shortages and rapid business growth.
But beyond current circumstance, there is another sizable benefit to adopting offshoring service: Imagine the freedom to focus on actually running your business, confident that the books are right, you have instantaneous access to all your financials, and you have a team of experts behind you to help make sound, logical financial decisions.
Want to Know More!
Drop us an email on firstname.lastname@example.org to know further about our expertise and capabilities in providing Bookkeeping, Accounting & Tax Returns Preparation services to US CPA firms.