Accounting will be one of the next professions savaged by digital disruption with up to 40 per cent of the work traditionally completed by accountants already being done by cloud-based computer programs and cheap, qualified bookkeepers, according to a confronting new white paper by non-institutionally owned licensee GPS Wealth.
According to the Paper’s author Greg Holman, founder and director of GPS Wealth, accountants are under increasing pressure to demonstrate their point of difference and add value just to maintain their ground. Those who want to gain ground, fend off competitors and achieve sustainable growth must expand their value proposition, beef up their soft skills and team up with the right partners in order to take their businesses to the next level.
“A look at what’s happened in other industries demonstrates that no one can afford to stand still. Digital disruption will destroy accounting practices that are inefficient, inflexible and provide a low level of service,” he said.
“The only way to combat it is to continuously add value, and grow organically by steadily increasing fees in line with increasing value.”
Titled “Melding accounting and advice: How to get future ready in a digital world”, the paper concludes that the best way for accountants to capture growth opportunities and future- proof their business is to offer financial services like insurance, lending, budgeting and cashflow management, strategic advice, retirement planning and estate planning. This can be done a number of different ways such as establishing a joint venture with an established advice firm, via a referral arrangement or by employing a qualified adviser in-house.
Drawing on Holman’s extensive experience helping hundreds of accounting practices expand their client value proposition by adding financial services either internally or through a referral arrangement, the white paper examines the changing role of accountants, the benefits of having a broader, deeper client relationship and the risk of doing nothing.
“Accountants still hold the coveted position of most trusted adviser,” Holman said.
“They can play a more significant role in their clients’ lives and continue to be their primary trusted adviser, potentially in conjunction with a financial planner, by helping them secure a comfortable retirement and financial independence.”
“By doing so, they can become an integral part of their clients’ lives and not only at tax time.”
Get a free copy of GPS Wealth’s white paper Melding accounting and advice: How to get future ready in a digital world.
