In today’s rapidly evolving business environment, accounting firm owners face an unprecedented volume of challenges that demand strategic foresight and smart technology choices. From staffing shortages and increasing regulatory requirements to rising client expectations and the transformative power of artificial intelligence (AI), the rate of change is accelerating across all areas of business. To secure their firm’s future, owners must reassess their strategic initiatives and understand how technology is reshaping every aspect of their operations. Technology is no longer just a tool—it is a central driver of change that impacts everything, and firm leaders must adapt to stay competitive.
The Role of Technology in Firm Strategy
Technology is integral to virtually every function within an accounting firm. Firm owners need to recognize that technology impacts everything from staffing and workflows to client services, compliance, and growth strategies. Here are key areas where technology plays a critical role:
- Staffing: Accounting firms are adopting hybrid and remote work models, outsourcing tasks to non-credentialed personnel, and leveraging overseas staff. A stable and secure technology platform is essential for managing these diverse staffing structures and ensuring smooth collaboration across all the geographies the firm supports.
- Connected Workflow: To remain competitive, firms must ensure that all data is digitized and accessible remotely. This requires a cloud-based infrastructure that facilitates centralization and collaboration, enabling employees to work efficiently from anywhere, at any time.
- Legislation Compliance: Accounting firms must be agile in responding to rapid changes in tax law, regulatory updates, and new compliance requirements. Technology platforms, particularly those in the cloud, allow for quick updates to applications and resources to ensure that the firm remains compliant.
- Growth via Mergers and Acquisitions (M&A): The accounting industry is seeing a rise in mergers and acquisitions, often driven by private equity investments. Firms must ensure their IT infrastructure can scale effectively to accommodate this growth, offering both stability and cost-efficiency.
- Cybersecurity: With increasing cybersecurity risks, firms need a robust business continuity strategy. This includes adhering to privacy standards like HIPAA and incorporating security training to mitigate potential threats. A comprehensive approach to cybersecurity is essential for safeguarding both client and firm data.
- Artificial Intelligence (AI): AI is a game-changer that is impacting all areas of the accounting industry, from tax services to client advisory roles. Firms must embrace AI technologies and integrate them into their IT strategies to stay ahead of emerging competitors and meet evolving client needs.
Reassessing Firm Strategy in the Modern Era
To remain competitive and future-proof their business, accounting firm leaders must reassess their strategies annually. This includes evaluating key areas such as production priorities, staffing strategies, and technology adoption:
- Re-evaluating Service Priorities: Firms should constantly reassess their service offerings in tax, assurance, accounting, and advisory services. This involves adopting tools that improve productivity, meet client expectations, and align with industry standards—rather than chasing bleeding-edge technologies that may not yet be proven.
- Leveraging Technology for Efficiency: Modern accounting firms must embrace digital tools that streamline internal workflows, including document management, tax return preparation, and engagement delivery. This helps improve efficiency, reduce errors, and meet client expectations for timely service.
- Staffing Strategies: Successful firms are adopting flexible staffing models, leveraging hybrid or remote teams, outsourcing non-core tasks, and attracting talent with the right technological skills. Talent acquisition and retention are critical to maintaining the firm’s competitive edge.
- Outsourcing Technology Management: Accounting firms should focus on their core strengths—such as tax and advisory services—and partner with external experts to manage and secure their technology infrastructure. Outsourcing IT functions to trusted partners ensures that the firm’s technology is managed by specialists, freeing up internal resources to focus on client-facing services.
Smart Technology Management: Key Considerations
To effectively manage technology and drive firm growth, owners must focus on several essential aspects of smart technology management:
- Enterprise Platform Stability: Firms must transition to cloud-based solutions that centralize data and support collaboration. These platforms should be scalable, secure, and capable of handling the demands of mergers, acquisitions, and rapid business expansion.
- IT Partners with Accounting Expertise: The firm should partner with an IT provider that understands the unique needs of the accounting profession. This includes familiarity with critical applications such as tax software, audit tools, and client accounting services (CAS), as well as offering responsive support during busy seasons.
- Cybersecurity and Disaster Recovery: A comprehensive cybersecurity strategy is critical. Firms must work with enterprise-class cybersecurity providers to protect against data breaches, comply with privacy regulations, and ensure business continuity in case of disasters.
- Training and Skills Development: As technology continues to evolve, employee training is essential. Firms need to ensure that their teams are equipped with the skills to adopt new tools and processes, bridging the technology skills gap within the workforce.
Choosing the Right Technology Partner
When selecting a technology partner, accounting firms should look for the following qualities:
- Proven experience with accounting firms and the specific vendors they use.
- Ability to support both cloud and on-premise applications.
- Expertise in managing the unique demands of accounting firm technology needs, such as tax season readiness and application updates.
- Enterprise-class cybersecurity tools to proactively defend against emerging threats.
- Adherence to privacy and compliance standards, including SOC2 data centers, GDPR, and HIPAA.
Conclusion
The pace of change in the accounting industry will never slow down, and technology will continue to be a primary driver of that change. To ensure their firms’ future, accounting firm owners must focus on their strengths—running the business and serving clients—and partner with trusted, enterprise-class technology experts to manage their IT platforms. By making smart technology choices today, firms will be better positioned to thrive in the face of ongoing change and emerging challenges in the years ahead.
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Roman H. Kepczyk, CPA.CITP, CGMA is director of Firm Technology Strategy for Rightworks and partners exclusively with accounting firms on production automation, application optimization and practice transformation. He has been consistently listed as one of INSIDE Public Accounting’s Most Recommended Consultants, Accounting Today’s Top 100 Most Influential People, and CPA Practice Advisor’s Top Thought Leaders.
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Tags: Firm Management, Technology
