4 challenges for accounting firms

As an accounting firm, you help your clients manage their financial lives – preparing financial statements and other compliance work and providing strategic advice.

But if your accountants are buried in compliance and transactional work, they might not be able to satisfy your client’s wider needs. That can impact on your client relationships and potentially lead to attrition.

One benefit of working with an offshoring partner is to free up your local staff to focus on value-added advice and client relationships.

In working with our accounting clients, we see some recurring challenges firms are facing, including:

  1. The challenge of client expectations

In accounting as with all professional services, it’s about the client: their needs; their expectations; their demands.

As compliance work is increasingly commoditised, client expectations have changed. Our accounting clients are typically focused on highlighting the solutions their services provide to their clients.

  1. The challenge of timely payment

Even as client expectations are rising, their propensity to pay in a timely fashion seems to be decreasing. As such, many firms are adopting payment technologies (such as Stripe for credit card payments) and even financing plans to allow clients to spread payments over time.

  1. The challenge of technology

Technological change in accounting and other software is remarkable and ongoing. Many of our clients are continually reviewing their software stacks to ensure the chosen products remain appropriate for their practices and meeting client expectations.

There are great tools out there that assist firms to innovate and better service their clients. Those advances have also opened the pathway to changed service delivery methods, including offshoring.

  1. The challenge of competition

Technological changes have effectively ‘democratised’ access to software and reduced barriers to entry into the accounting and bookkeeping markets. Anyone with a laptop, an internet connection and a Xero or Quickbooks subscription can call themselves a competitor. A cluttered marketplace makes it harder for a potential client to understand why your firm is different and focused on their needs.

An offshoring provider can help you address some of these challenges. Offshoring can principally assist with efficiency – that is, the timely preparation of compliance and transactional work, the increased availability of resourcing, the ability to access labour in lower cost environments. Collectively, this can enable your local staff to focus their time on providing value-added solutions to your clients.

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