- Vidit Agarwal
- April 03, 2022
According to a 2018 Thomson Reuters survey, accounting firms in the UK would experience a major transformation by 2028. 345 UK accountants participated in the survey where 96% of them agreed that technology is going to play a pivotal role in the transformation.
From digitisation to workflow processes, everything needs to be transformed if you want to sustain and grow your accounting firm. So what are those challenges that accountants are facing during the transition?
Among all the challenges, the top three are MTD, stern regulations and finding the right talents. There are more. Let’s address each one of them and how you can overcome the challenges effectively.
9 challenges faced by UK accountants and their solutions:
-
MTD: All VAT-registered businesses with a turnover of £85,000 or more are bound to go digital from April 2022. MTD (Making Tax Digital) is not new but it has come with strict rules every year. Many accountants stated that convincing their clients to go digital is the toughest hurdle. But the only solution is going 100% digital. Don’t think of it as an accountant’ duty to educate your clients, instead look at it as an opportunity to expand your exposure.
Choose a software or tool that will help both you and your clients.
Read how to get your clients ready for MTD smoothly. (Suggested blog title: how to get your clients ready for MTD seamlessly)
-
Tighter regulations: Small businesses have been facing major problems with the recent Government regulations. Laws enforced by General Data Protection Regulation and Data Protection Act and Brexit have affected everything from business operations, tax and employment.
The solution? Keep yourself updated on the ever-changing regulations and make great relationships with your clients and associates.
Learn how to transform your accounting practice to build strong relationships with your clients (Suggested blog title)
-
Staff management: NumToday’s accountants need to wear multiple hats to succeed. They need to understand clients’ businesses, their requirements, processes, customers. Staying updated on the latest laws and regulations, knowledge of data analytics and automation are also a must. While finding appropriate talents is crucial, talent retention is also very important to sustain.
The solution is welcoming a flexible and diverse workforce into the firm. Focus on upskilling and reskilling existing employees. Introducing them to digitisation and automation will also solve many of your staffing problems.
- Competition: Competition can pose a serious threat to accountants. But this can be easily addressed with a proper digital shift. After all, we still start our search with Google and social media. Build a strong online presence with a website, SEO and social media marketing. Consider switching to a software that will take care of your online presence.
- Lack of growth: Accounting is still considered a traditional profession. Steady growth is natural for any talented accountant but is there any roadmap for ballistic growth? Of course, there is! It starts with your current clients. There are strategies to ensure better client services and satisfaction such as referral programs, partnerships etc. Seek consultation from experts.
- Client management: Client management has undergone a drastic change over the past few years. Today’s clients look for firms that would provide them value-added services apart from accounting work. By streamlining your operations with proper software, you can differentiate yourself from others.
- Lack of IT knowledge: With stricter regulations coming in around digitisation, it would be redundant to say that all accounting firms should embrace technology. But as busy professionals, accountants find it challenging to make that shift. But here's some good news for you.
There are platforms that can help you in the process. Go for a software that will take care of all your technology requirements while you focus on growing.
- Automation: Accounting automation may seem tricky initially but once done you can only gain from the switch. From internal operations to client workflow, accounting automation is the one-stop solution for all the challenges you are facing. It not only saves your time and energy but also helps you serve your clients better. All you need to do is choose the right automation platform and voila!
- Security concerns: The accounting job is data-heavy and so is the threat it poses. There are plenty of miscreants out there to cause trouble for your firm and your clients. As an accountant, the challenge is implementing tools and operations to protect all the historic and new data. So, what’s the solution? The answer is secured digitisation.
Start with a platform where a robust security system is in-built and all you need to do is know the functions to control and fetch your data.
