Solution 2: Talent Acquisition & Retention Strategies
For forward-thinking firms, there are solutions available in mitigating the effects of the global-industry shortage of accountants.
By implementing short and long-term talent acquisition strategies, your firm can secure the right talent at the right level and cost.
“The industry is under so much pressure with the volume of work, which means business leaders often find themselves focused solely on what they need to do now to get the work out as opposed to developing and growing their people. The benefit is that the more you grow your people, the more output they’re capable of and the more potential there is for them to add real value to your business” – Nick Sinclair, Founder of TOA Global.
With the right approach, firms can navigate the current talent crisis and emerge stronger than ever.
Challenge 3: Evolution of Technology
Technology is rapidly transforming the accounting industry, requiring firms to adapt to new practices and leverage emerging technologies. Cloud-based accounting software, data analytics, and automation are becoming crucial for efficient operations and staying competitive.
Solution 3: Adapt and Upskill
As technology continues to transform the industry, it’s critical for accounting firms to focus on adapting and upskilling, ensuring they are well-placed to benefit from the changing landscape.
According to Oracle Netsuite, “the latest innovations around real-time analytics, robotic process automation (RPA) and AI will depend on having a sound, reliable, clean data infrastructure. But many companies are working with legacy, on-premises accounting systems that are outdated.”
Challenge 4: The ‘New Way of Work’
Like many industries, accounting is experiencing a shift towards flexible and remote work models. While remote work offers benefits such as increased flexibility, work-life balance, cost savings, and access to a broader talent pool, it also presents challenges in terms of cybersecurity and adjusting to new work arrangements.
Solution 4: Prepare for Hybrid
Accounting firms adapting to hybrid and remote working models should take key steps.
Establish a clear policy outlining expectations.
Promote communication systems for effective collaboration. Assess technology infrastructure for remote work support.
Prioritize cybersecurity measures with authentication protocols, VPNs, and encrypted communication.
READ: How TOA Global can protect your firm from cyber-attacks.
Challenge 5: Regulatory Changes
Accounting teams face ongoing challenges in order to ensure compliance, maintain professional competence, and provide accurate and reliable financial information. It is essential for accountants to stay updated on:
For example, Neil Fishman, the president of the National Conference of CPA Practitioners, highlighted in his January 2023 newsletter that practitioners must prepare to incorporate 5,593 pages of new provisions from the Consolidated Appropriations Act (also known as the COVID stimulus) amidst a new tax season, including tax extenders and PPP loans protocols.
Solution 5: Research, Participate, Track and Implement
To address regulatory changes effectively, accounting firms can:
Stay informed by monitoring official websites and industry publications.
Encourage employees to participate in regulatory compliance-focused professional education.
Designate a team to monitor and interpret regulatory changes and develop compliance strategies.
Foster relationships with regulatory bodies through open communication and participation in consultations.
Conduct regular internal audits and implement compliance management systems.
These measures, along with fostering a compliance culture, engaging external experts, participating in professional associations, and developing a regulatory change management plan, help accounting firms navigate regulatory changes and ensure compliance.
Challenge 6: AI
AI is a disruptive technology that is having a major impact on the accounting industry, but what are the top concerns?
