This day, it appears that there aren’t many perks for growth for accounting practices today.
For starters, look at the state of tax preparation. Many clients are buying "Tailored" tax programs and doing their tax returns themselves. Certainly, the market for this service is shrinking.
What about client accounting?
It's become a low-margin commodity service, thanks to the most widely used “Tailored“ Accounting systems sold directly to small enterprises. These pieces of software have taken control of many accountants' time and procedures. Clients buy the software, but most don't know a thing about accounting, so they end up making bookkeeping disarrays. Proficient accountants like you have to spend hours cleaning up those disarrays before they can do their certified work. You became an accounting expert so that you could add value to your clients' enterprises, and give them the crucial business guidance they need. But current circumstances make it difficult – if not impossible – do that.
If we look closely, we uncover a disturbing reality – and the reason that accountants have lost control of their core services (taxation and accounting).
While technology has undoubtedly conveyed incredible benefits to accountants, it's also the cause of the diminished control that accountants now have over their core services, and of the marginalization of accounting practices.
The “Tailored” accounting systems and tax programs are products of the Computer advancement Era. Tailored accounting systems took control of accounting away from accountants, and Tailored tax programs have taken a blow to the tax preparation service industry.
Meanwhile, accounting firms in Dubai used the power of mainframe computers to capture payroll dispensation services from accountants. The tools accountants had in 1900 were no match for the power of these industry-wise computers.
If accountants linger on the same route and keep yielding more and more of their ground to the massive growth meddling of accounting technology, the prospects for a brighter future for accountants will keep getting dimmer.
But auspiciously, unlike previous technologies, new technological advances have created remarkable potential for accountants to recollect a good amount of business they had lost to technology.
And that's not all. These technological advances have also created billions of dollars worth of new opportunities for accountants.
The ground-breaking cloud technology that has transformed so many aspects of our lives in sweeping ways has the potential to completely transform the accounting profession and help you refurbish your practice.