Every day new challenges crop-up in the accounting profession and CPAs need to find a way of overcoming quickly before their business suffers. Let us have a look at some common problems CPAs generally face:
1) Do-it-yourself economy
The world is becoming more and more digitalized and with that it is becoming easier for individuals to do different tasks themselves. Many clients believe accounting is simple data entry and that the computer does all the work for them.
It is now our job to inform such clients of the implications of not letting a professional do the work for them and that their time is more valuable being focused on their work or business. Digitalization has also impacted on fees, driven them down which has an effect on our firms because we now have to lower our fees to compete better in the market.
2) Increased expectations
It is not as simple any more as just knowing how to work with the numbers because now as a CPA you are expected to be a business consultant and wealth manager. Traditional services are a thing of the past and focusing on your clients’ broad needs and being an advisor are a necessity. The hardest thing is finding the time to bring in this expertise.
It simply stands for 'First In, Last Out'. Running your firm is one thing but with clients, technology and staff all demanding more of your time, ‘Me Time’ is becoming a thing of the past. Don't let that happen. Give yourself frequent short breaks.
4) New recruits
Especially with smaller firms it is becoming much more difficult to hold on to qualified talent. Retaining those employees is vital in regards to growing as a firm, otherwise too much time will be concentrated on training new employees and not enough time on the business itself.
5) Dog-eat-dog world
Running a firm was never going to be EASY but competition has increased and it has become extremely difficult to grow a practice. Knowing some of the common problems can hopefully help you face less road blocks in the near future.
To keep up with the accelerating pace of change and complexity, CPAs must become more comprehensive, tech savvy and proactive to maintain their competitive edge.