Guest blog by, Ian Cooper, Digita Business Development Manager
We are all aware of the term Return on Investment. This is a performance measure used to evaluate the efficiency of an investment or to compare the efficiency of a number of different investments.
However, a term you might not be so familiar with is RONI, the RISK OF NOT INVESTING.
To remain relevant, you’ll need to invest in:
• Tracking trends – to learn about trends in business
• Technology – to take advantage of the efficiency gains
• Learning – an accountants strength lies in knowledge, keep learning
• Time – get to know your clients, this takes time.
The pace of change is extreme, in most areas of the accounting profession, the overall economy and society at large. Accountants must do more just to keep up, which many are doing successfully.
Advances in consumer behaviour have been significant, such as the use of YouTube, Pintrest, Uber to cite but a few. There has been more data created in the past 2 years than in the whole of civilisation before. The way knowledge is consumed has changed; people expect to have the information they need when they need it.
This is opening up huge opportunities for firms who are embracing the changes in technology. If you are seen as a firm who is one step ahead, this can lead to additional opportunities. Within the accounting industry we are now seeing the millennial generation coming through as business owners, expecting a different type of service to your more traditional businesses.
Accountants need technology to deliver a modern solution. If you’re still posting tax returns or accounts for signatures, don’t be surprised if your clients move to firms who provide this information electronically. What’s easier, to accept a tax return with a few clicks of a button, or to sign and post back a tax return? Electronic approval of a tax return will reduce the amount of time you have locked up in WIP, this has a positive impact on your debtor days.
Most SME’s utilise some kind of cloud technology. Whilst you can’t be expected to know about every one of the 1000 APPS that are created every day, it is important to have awareness of the types of solutions that are being made available. One thing I would recommend is to put aside a set amount of time once a month to review different types of technology that are appearing on the market.
Staying relevant to your clients and winning new clients is about staying relevant. It has now gone beyond accounting. Accountants are in a unique position to help shape the future landscape of business. Many firms can do a tax return, year-end accounts and bookkeeping, but it will be those who adapt to understand opportunities that will retain and win more clients.
Here are several trends that we know will increase in the coming years.
• Additional regulation
• Changes in technology
• Demo graphic changes, the rise of the millennial
• Companies increasingly dealing with overseas businesses
Acting on these trends will allow you to remain relevant in an ever changing business environment, opening doors to an array of opportunities.
Ian Cooper will be speaking more on this enlightening topic at the ICAEW practice 2015 conference. Click here to book your tickets.
This page can be viewed at https://www.digita.com/pro/blog/index.php/roni-have-you-considered-it/
Copyright © Thomson Reuters, 2017