The elegantly ambiguous phrase, "May you live in interesting times," certainly applies to the U.S. accounting profession today. Especially among firms that serve small business clients, the current landscape is interesting both in the sense of presenting tremendous opportunities for growth and harboring large challenges.
While the demand for their services is on the rise, accountants catering to the small-business clientele also face increased competition from large firms and software companies that are commoditizing tax services. This trend is accompanied by greater pressure for accounting practitioners to provide a comprehensive package of services at a set cost-in other words, value-based billing instead of an hourly rate. Also, the industry is still adjusting to the higher levels of scrutiny and demand for more transparent fiduciary practices required by Sarbanes-Oxley and other new federal regulations.
But amid these interesting challenges, the profession remains healthy and dynamic. The certified public accountant is still among clients' most trusted business advisers, and there is strong demand in the small-business market for CPAs to deliver more specialized and in-depth financial consulting services. Meeting this demand will require accounting professionals and their clients to collaborate more closely and effectively than ever.
Because accounting information is the lifeblood of a business, gaining fluid access to that information is critical for accountants to successfully support their clients. Thus, technology that facilitates seamless information sharing and collaboration will be indispensable to the accounting firm of the future. Also, many small businesses are looking to their accountant as a trusted adviser on technology as well, which presents another interesting set of challenges and opportunities to expand the accounting practice's traditional base of services.
Collaboration
Accounting software integrated with other business systems and the Web is dramatically changing how accountants interact with their clientele. By making information more easily accessible and shareable, these technologies enable accountants to provide higher-quality services to clients in the same amount of time-or even less-than they would spend even just a few years ago.
Security Regulatory Compliance
Safeguarding businesses' sensitive financial data, which has always been a top concern to accounting professionals, is now even more challenging in the Internet age. The same technologies that make information sharing so fast and easy also expose clients and firms to considerable risk from unauthorized access. However, threats such as Internet viruses, worms, and hacking can be minimized by choosing an accounting software package with proven, built-in security features that complement other protective measures within the small business's IT system.
Expanded Services, Higher Value
Accounting technology can be a tremendous asset here. The high level of trust that small businesses already place in their accountant opens the door for firms to market their expertise on choosing an accounting software package, training employees to use the software and even helping clients adjust their business practices to get more value from the technology.
What Else?
In addition to these traits of a comprehensive and effective accounting software solution, accountants and their small-business clients should have a few other criteria on their checklist when evaluating current and future technology products: Easy to use, GAAP compliant, and backed by comprehensive training and support. Change is nothing new to the accounting profession, and its practitioners know the importance of continually updating their knowledge on behalf of clients. As information technology in general continues growing ever more prevalent and fundamental to business success, so too is accounting software as it becomes easier to learn and use. Accountants who actively seek ways to apply software throughout their practices will stand a better chance of increasing their client rosters as well as deepening clients' allegiance.
Future prospects like those should make for interesting times in the best sense.
Bob Lewis is Senior Marketing Manager, Accounting Professionals for Microsoft's U.S. Small Business group. Visit the company's Web site at www.microsoft.com.
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