How to Go Beyond Accounting – Prominent Ways Discussed
The accounting industry is full of vast opportunities despite the fact that several complex challenges arising on the way need to be resolved. When we talk about challenges, we also need to consider the solutions that are feasible. Going beyond accounting can definitely help to solve all such challenges.
So, What is Meant By Going “Beyond Accounting?”
It simply means deriving maximum advantage of the available automation tools. When you plan for going beyond accounting, you are actually preparing for deploying the automation tools to streamline your business practices.
It’s highly critical for worldwide accountants to understand the various tools available and deploy them to the fullest to go beyond accounting in real. Following are ways in which accountants can easily stay ahead of the game to become digital savvy accounting advisors –
Thoroughly Understand the Market
Study has shown that small businesses spend several trillions of dollars and are also responsible for job creation, thereby creating huge opportunities. Small accounting businesses that deploy one or the other Cloud accounting software are more likely to get the competitive edge compared to those that don’t.
A Cloud accounting software is currently the in-demand commodity in existing market that can help decrease the average time for bookkeeping besides enabling faster payments from vendors.
Take Absolute Control
The favorable transition from being a simple accountant to a knowledgeable advisor gives you absolute control. Initially, you can start by migrating systems & processes off of the desktop software to various Cloud-based options that are available to you.
At present, accounting businesses and services need to be available on phones, laptops, work computers as well as home computers.
By embracing this digital transformation, you can be one step ahead in the industry as you gain better control. This approach also enables you to lead your clients rather than you being led by them. As per the current business scenario, the overall rate of digital change is not slowing down.
Working as a connected advisor, you can easily achieve a robust value pricing model once you automate all the processes existing in your practice. This would involve use of online e-sign documents, use of Skype or live-chat for entire client communications, besides relying on software for real-time syncing of data between customers and vendors.
As told before, moving away from inventorying your valuable time to a robust value-based model, automation of procedures and processes is essentially required. In this way, you get more time to not only build your business but secure more clients as well.
Planning to become a connected advisor would mean that anything that has the feasibility of being be automated, will be essentially automated.
Irrespective of the automation factor, your value to your current clients will not change at all. All your clients want you for is your sheer expertise including your capability to analyze the numbers. They may be hardly bothered about how long it takes for you to process a complex calculation.
Implement Fixed Billing
Truly, time is and has to be traditionally the inventory of practice in the existing world of accounting. Every staff member maintains a 1:1 relationship with his client.
Typically, there is a fixed limit to the total number of minutes or hours you can dedicate in billing when you are charging out your overall time in 6 minute increments.
You need to make the move gradually towards fixed billing based on value, while also moving away from the traditional “time as inventory” model.
Irrespective of their industry presence, clients are fully prepared to handsomely pay for all your expertise and the tremendous value you bring along to their business.
This even helps suitably in cash flow planning of most small businesses and allows them properly budget for their overall advisory costs per month.
Irrespective of the very best of your positive intentions, you can’t take the risk of expecting instant results.
This is true especially for those having an established accounting practice/system well in place. For sure, it will take quite some time to make the complete digital shift for achieving long-lasting results.
Starting with small blocks can help you to make big shifts in the longer term. It’s only once you have a completely efficient model that you can consider duplicating it with all other service lines that you offer.
You can make suitable selections to increase the efficiency existing between all accounting functions occurring in your business.
A number of accountants have problems embracing new technology. It’s because human nature often resists any sort of change. However, it’s also pretty true that adopting new technology helps you to work much smarter, become more efficient and be more profitable.
It will effectively help you improve your collaboration with your clients. Moreover, work would become more enjoyable for you in case you can dedicate more of your time to be more proactive with your existing clients.
With the most crucial legacy systems in place, you can expect that modernization of accounting will take some time. Different set of people have their own set of expectations of value & time. However, in order to ensure that all of these are reasonable, simply set the right expectations.
Be a Partner for Success
With a connected practice strategy, you can create an absolute win-win model teaming up with your clients. If you are partnering for success, it means that you need to develop a human relationship and market yourself like a spending coach.
Understand the Data
By understanding the various KPIs in different industries, you can explain your clients how they’re exactly doing. Detailed analytics reports can show you helpful metrics & graphs revealing how your accounts are actually performing.
In order to modernize accounting, you need to optimally leverage technology as it helps you to work smarter, not harder. Moreover, it means providing clients more value for their money rather than just more of your time.
Finally, it means that you are ready to go “beyond accounting” and become a strategic partner in your client’s business.