So, how an average brain translates accountants is money. So, accountants’ equal money and that is the absolute truth or is it? And yes, accountants do deal with money but is that all there is to it? Not by a long shot. An accountant has to be a great communicator to be able to attract new clientele while helping them decipher their needs and informing them what he could provide them. They need to be well informed at all times about new regulations and standards because not doing so could cost their clients good chunks of their money and the accountant their reputation.
Constant changes to the tax system, hiring and retaining staff, and understanding the impact of technology on your practice — all the challenges and more are for the modern accounting firm. We discuss here what is it that accountants lose their sleepover.
Well informed is the first step- With the constant changes to the tax regime, the need for public practice accountants to stay up to date is greater than ever. A lot of the measures enforced by the govt. are quite complex and can increase the likelihood of taxpayers and their advisers making inadvertent errors. Penalties and errors are to be avoided at all costs and one can do that only by being informed of all the new rules and regulations that the government imposes. An accountant can give his/her best judgment only after knowing of the current rules and regulations at play. With technology now factoring into how accountants and accountancy works, a lot needs to be done a lot quicker, thankfully information is also available at the same tap of a finger speed. This ever-changing, of change represents opportunities and challenges alike.
Awareness to work-related expenses- Work-related expenses need to be kept on a tight leash and monitored like a hawk. Because when work expenses skip your mind and memo, they result in a chaotic ledger and a confused budget situation. Better than shooting arrows in the dark and attempting guesswork regarding these expenses, a tab kept on them is a wise solution. Mostly it takes into consideration the WRE gap which in layman terms means the difference between what you can claim and what is being claimed. This figure is estimated to be greater than even the corporate tax gap of $2.5 million. Overclaiming can land you in all kinds of soup when it is time to prepare for your returns. The key here to remember is, you must have incurred the expense to claim it since there is no standard deduction. This is done since the tax changes are a constant, to a point where monthly discussions with the clients are a must to catch up about the changes that have occurred.
Deadlines that take a toll- This especially applies to public practitioners since their work is heavily dependent on client service and delivery. Failure to keep clients happy and satisfied results in deteriorating clientele and increased pressure. There is a growing rate of professional burn out these days. A lot of incredible professionals with impressive technical skills are slumped by deadlines that keep coming one after the other, resulting in long working hours and hardly any time to relax, thus burning out. It lately seems there is no off switch for work, thus no downtime whatsoever. Due to this act of always being on the work mode, their skills don’t transform into the kind of work they should garner. All this is done to keep up with the increasing number of changes that the accounting sector witnesses and subjected to, resulting in a higher volume of work.
Accounting software and technology- When not turning to unqualified accountants, a lot of companies and businesses decide to do it on their own. With the number of accounting software in the market, a do-it-yourself mobile internet culture has come to exist. While it empowers business owners. Providing them with a sense of independence and a little peek into the know-how of the trade. It doesn’t do much when met with tasks that require a wide variety of other skills along with an expertise on tax planning and business management and sustainability. A lot of small businesses don’t realize how they can harm themselves in the long run by self- administered online accounting software, along with anticipating and facilitating their requirements to help you access accounting information.
Unqualified Accountants- With a lot of small businesses and startups emerging lately, it is as easy as pie to create your own website and start your very own business from the comfort of your home. Although this provides a lot of opportunities, it also creates a huge number of unqualified accountants that could eventually result in a lot of problems for the accounting sector. These unqualified accountants do possess a skill set; however, it might be narrow and without proper training or qualifications. The catch is they dole out services for a fraction of an amount as compared to the qualified accountants who will actually be beneficial to have by your side when actual financial trouble brews. These unqualified accountants have a lot of companies and individuals running to them for guidance in exchange for an ‘affordable’ fee but might just land you into an irreversible decision that will take a toll on your profession. Resulting in a domino effect that jeopardizes any growth, development that you may have made in the past and tarnished any goodwill whatsoever.
Consolidation of Firms- Consolidation seems to be a nationwide trend in the last few years. It is primarily done to counter issues like rising costs, towering overheads, and expenses. When done right, consolidation of firms results in great value offerings, resource sharing to everyone’s advantage and a diverse selection of services to the clients. But to believe that consolidation of firms is the solution to all of a firm’s problems is quite naïve, to say the least. While it does clear out the little problems, what it doesn’t do is, take a hard look at the actual problem that might just bring the company to the brink of self-destruction. Two average firms or one great and one not so great firm can’t come together to make a great one. The idea, however, should be to have a good look at the product and service offerings and see where the problem lies and then get to rectifying that instead. By anticipating the problems, a lot of steps can be taken to combat them and support the client’s in their needs.
In conclusion, it is imperative to stay relevant at the present and as the future dawns on the accounting sector. The right kind of skill set will always be in demand and will be sought for now and always. Adapting and evolving is the only way forward and to a better future.
