Oh, if we could count the ways that we love accounting… While you likely won’t find most of us at Vertical IQ buried in balance sheets or tabulating effective tax rates, you WILL find us at accounting conferences supporting today’s CPAs! That’s why we spent last week at Allinial Global’s Firm Success Conference in Charlotte, N.C., learning about the latest in the world of accounting and what is top of mind for today’s firms.
Coming up short
If you’re dialed into the accounting side of LinkedIn or have some CPA pals, the top challenge discussed by Allinial Global’s CEO, Mark Koziel, during the keynote session should come as no surprise to you. The talent shortage continues to be a serious pain point for many firms. Why is that? Well, for one thing, fewer people are majoring in accounting. Within the accounting major, the number of students completing bachelor’s degrees fell 7.8% during the 2021-2022 school year.
Koziel explained that this precipitous dip is due to a variety of factors, one being the 150-hour credit would-be CPAs must earn before going into the profession. This is seemingly one of the largest barriers to entry for the profession, especially when other professions are paying more for the same skills without the additional time and financial commitment. The interesting part is that many other countries do not have this specific requirement, yet they are still facing the same talent shortage.
But, could one of the biggest deterrents actually be coming from the mouth’s of accountants themselves? Have you ever heard a CPA say something along the lines of: “This upcoming tax season is going to be awful!”? Or perhaps you’ve even said it yourself. The lower compensation coupled with this anticipation of long, grueling hours makes it no surprise that younger people are not gravitating to the field!
Koziel’s plea to today’s CPAs is: “The story has to be better.” Reframing the way the accounting profession is perceived may be a larger influence for the next generation than anyone realizes.
Industry expertise is on top
For a profession that dates back to ancient times, it’s no surprise that a lot has changed. Part of that evolution includes changing service tiers and pricing models to meet the client needs of today and tomorrow.
Client advisory services (CAS) are rapidly evolving to enable advisors to provide more valuable insights to clients, retain talent, and ensure sustained revenue growth for future growth and success. During Koziel’s session, a live poll was taken of the crowd, and among the top industry trends having an impact on attendee’s firms was CAS, followed by talent shortage, and then outsourcing. One CPA from the crowd mentioned that as firms are downsizing, it’s an opportunity for them to swoop in and stand out.
Picture a funnel where the top represents the most important way to begin engaging and providing value to clients while funneling down to less important functions. While it was previously at the bottom of the funnel, “industry” now sits at the very top of the funnel, meaning that the most fundamental, impactful, and valuable way to engage more clients is to be knowledgeable about their industry.
Many firms try to be generalists, but Mark said it best: “Today’s [accounting] industry is too complicated to say that we’re good at everything.” Having an industry focus is what can make the difference between being a business owner’s CPA and their trusted advisor.
Talking tech
Would it really be a conference in 2024 if there wasn’t mention of the latest technology? Of course, the spotlight was on artificial intelligence (AI). Unlike many other conferences we’ve attended this year that discussed industry professionals leveraging AI, accountants are not necessarily 100% on board.
Accounting Today found that a whopping 73% of accountants aren’t using AI, and 35% have no plans to. Koziel shared that only 4% of accountants feel “very knowledgeable” about AI, further hindering firms’ adoption of it. Many of the other conversations that we heard were around the consolidation of technology. Many accountants noted that they have a plethora of products — but having so many tools can feel overwhelming.
Speaking of tech, we learned a thing or two from one of the most tech-savvy people in Charlotte: Special Agent David Katkowski from the FBI. According to Accenture’s Cost of Cybercrime Study, 43% of cyberattacks are aimed at small businesses, but only 14% of small businesses are prepared to defend themselves. There are two main things that Katkowski pleads for everyone to keep in mind to protect themselves, their businesses, and their families online:
- Update your software: Bad actors are more easily able to compromise networks of those who do not have the most up-to-date software, so make sure you’re always using the most recent version of apps and browsers, both at home and on your personal devices.
- Spam vigilance: Being cautious is a good thing, especially when it comes to receiving email, texts, and calls from names you don’t recognize. Even then, employees of small businesses experience 350% more social engineering attacks than those at larger companies, meaning the malicious messages look to be coming from a trusted source. Katkowski recommends always being skeptical and overly cautious!
One thing is for sure: Protecting your organization from bad actors isn’t just the job of your IT department; it truly takes everyone being aware and informed!
It’s such a special experience to meet and connect with people who use your product on a daily basis, and we were very fortunate to get to meet so many of our clients at Allinial Global’s Firm Success Conference. Learning about firms’ challenges, needs, and desires — right from the folks who live it daily — is something we certainly do not take for granted. As Vertical IQ increasingly focuses on the accounting space and learns how to best serve the needs of our accounting clients, it’s clear to see that staying competitive isn’t just about understanding accounting and finance — it’s about understanding what’s next.
Industry Intelligence can be the differentiator for your firm. Learn how Vertical IQ helps firms of all sizes win, grow, and retain more business here.