Enterprise technologies and the accounting industry are growing at a rapid pace. Advancements in business strategies are forcing many accounting firms to adapt to increase revenue, stay competitive, and keep themselves relevant. As a result, firms are faced with a whole new set of corporate challenges.
Staffing, tax reforms, data management, and cybersecurity are just some of the things that you need to consider in modern finance. It may be hard to keep up with these challenges, but overcoming them can put your business ahead of the curve and ensure constant revenue.
Here are 4 challenges in modern finance that accounting firms face today:
#1. Evolution of accounting systems
Accounting tasks and systems such as business advisory, tax planning, and auditing change just as quickly and frequently as client demands and expectations. But by employing the right tools, you can streamline your processes and serve your customers better.
To keep up with the latest developments in the industry, make an effort to find the right accounting programs for your company, such as Microsoft Dynamics, QuickBooks, and SAP ERP. These apps may cater to different business sizes and needs, so be sure to do your research before investing in one.
If you need professional advice, you can also turn to managed IT service providers (MSPs) like Dyrand Systems. Our experts give expert recommendations and the cutting-edge accounting solutions your company needs to succeed. What’s more, we provide key processes such as access management, reporting, and audits, so you’ll have peace of mind when running your company.
#2. Downward price pressure on services
Having competition isn’t a bad thing. It inspires you to think more creatively, focus on product quality, better understand customer preferences, and become a better businessperson.
However, too much competition puts downward price pressure on your services. When there are more players in the market, this forces businesses to reduce their prices in order to stay competitive, resulting in smaller returns and profits.
To combat this, you can focus on making your firm’s high-value expertise more visible. Highlighting certifications and accolades received by the experts on your team is an excellent way to boost the perception of your overall brand among clients and employees.
#3. Commoditization of services
It’s important for your business to stand out from your competitors. However, when potential clients view your services as interchangeable with services offered by other companies, they fade into obscurity. This also reduces the chances of potential clients subscribing to your services.
To stand out, you need to find your competitive advantage and the unique aspects of your services. If there are few or none to go around, you can also establish new ones.
For instance, if you and your competitors offer tax filing services, you can outperform the competition by providing clients with tools that simplify tax payments and enable them to quickly see the status of their returns. This will now become your unique selling point (USP), and you can take advantage of it to bring more clients to your organization.
#4. Acquiring top talent
As the baby boomers start retiring, there’s always need for fresh talent. Finding the candidates that fit your company will always be crucial, so companies are constantly battling against each other to hire the best people.
Here are a few points to remember when attracting the best talent:
- Growth. Nobody wants to be stuck in a dead-end, repetitive job. When recruiting, emphasize how your firm will provide training and development to keep applicants’ career moving upward.
- Work environment. Promote better work/life balance in your office by holding fun activities in the office that bolster teamwork and effective communication.
- Money. It’s already a given that candidates will compare your salary offering to that of other firms. Make sure that you have an aggressive and competitive compensation package so your firm will be more attractive.
- Location. Better schools, housing, and transportation will always be a priority for your candidates. Highlight the amenities in your location including the benefits these can give them.
Overcoming these challenges will not be an easy feat, but doing so will enable accounting firms to not just be prepared for future developments, but to stay relevant in a constantly competitive industry as well.
Dyrand Systems provides proactive and unparalleled IT services to clients in Vancouver, Richmond, and Burnaby so they can focus on more important matters of their business. Give your enterprise the IT pampering it deserves. Give us a call today.