OK so accountancy as we know it isn’t dead (yet).
But a new way of working is necessary and essential to survive the inevitability of cloud accounting and Making Tax Digital.
The buzz, energy and sheer numbers of accountants at Accountex this week was exciting.
At last the accountancy profession is now very awake to the inevitable changes hitting the profession. You could say the profession is "all shook up"
But it is time for "a little less conversation" and a "little more action please"
Will the energy from Accountex turn into action?
To help drive you to action, let me first take you back a few years.
Walking around Accountex 2017, it’s easy to think of 2013 as a lifetime ago.
But 2013 is only 4 years ago!
And 4 years ago, 2 previously dominant household names of business died a tragic death, thanks to technology changes:
· One of them invented the future then ignored it, because they were happy with their lot
· The other was simply blind to the changes because they were ‘comfortable’ making good money the way they had always made good money
This is directly relevant to you and your firm of accountants. Here’s why…
The last 4 years working exclusively with accountants (and 11 more years before) has shown me two types of accountant in the UK:
1. Accountants who are comfortable and happy with their lot (or at least say they are) and
2. Accountants who are uncomfortable and absolutely not happy with their lot!
It pays to be afraid…
Be very wary of feeling comfortable and happy with your lot. Here’s why…
Kodak held an almost monopolistic position as supplier of celluloid film for cameras. And even though they invented the digital camera, they failed to drive the adoption of their new technology fast enough, because of their comfortable position. Their competition then beat them hands down and they died a death in 2013*.
Be happy with your lot now and your accountancy firm could also end up like Blockbuster. This video and DVD rental business was world No.1 but failed to adopt new technology (streaming) and so withered away and eventually died in 2013.
The most profitable emotional state…
IF you’re uncomfortable you’re in the right emotional state to make the most of the opportunity that is cloud accounting and Making Tax Digital…
…this is the best state to find yourself in, because the discomfort drives your curiosity, drives your willingness to learn, drives your desire to take action and change.
Whether you’re uncomfortable because you aren’t making enough money; or you’re uncomfortable because you aren’t getting enough free time or quality free time away from your practice; or you’re uncomfortable because you aren’t growing fast enough; or you’re uncomfortable because your competitors are stealing a march on you; or you’re uncomfortable because you want to change but don’t know how to.
Whatever the reason for your discomfort it drives you to take action but…
1. Put the adoption of cloud accounting across your clients as the number 1 strategic objective for your firm
2. Build a few KPIs that support your efforts and drive action across your firm from top to bottom
And which KPIs?
3. Join me and Amy from Futrli on the 1st June for a 50 minute webinar to work through the three KPIs that could be the difference between simply surviving MTD or thriving in an MTD world - which would you prefer?
See you on June 1st
*Yes Kodak still exists today making printers but this is a very different company (owned by the pension fund of Kodak employees) and it’s tiny compared with the giant that preceded it.