The ACCA’s new report delves into the key roles that accounting professionals are now expected to fill, and what that means for your organisation’s future, writes Kevin Reed.

Technological change in the workplace, and our daily lives, is a constant. That the pace of change is seemingly increasing means it’s not so clear what this means for practices, their clients and the roles that accounting professionals will be expected to play.

With this as the backdrop, the ACCA has produced a report – three years in the making – that seeks to make sense of the social, corporate and employment environment.

Future ready: accountancy careers in the 2020s contains five key ‘career zones’ that could provide opportunities for accountants in the future. Some are more relevant to finance functions than practices, but they could all still apply to specific roles with a professional services organisation or otherwise. These are:

  • The assurance advocate: these roles will focus on trust and integrity in an organisation. This may include risk-focused tasks, or understanding emerging issues that could impact on business performance. Control and stewardship are also under their remit.
  • The business transformer: From a practice perspective, individuals will need to lead organisational change to cope with growing regulatory demands and evolving client needs.
  • The data navigator: From a finance perspective, they will focus on expanding the organisation’s use of data – finding tools that will analyse information to provide business critical insight. Accounting practices are beginning to understand the importance of strong data control and analysis, alongside managing its flow between them, their client and statutory bodies such as HM Revenue & Customs.
  • The digital playmaker: Described by the ACCA as an ‘evangelist’ for technology, we see practices looking to allocate a champion within their firm to help track the latest apps and software. They will also play an important role in its implementation.
  • The sustainability trailblazer: What does sustainability mean for an organisation? And how do you measure it? Producing broader information about business performance will certainly fall under the remit of a finance function – perhaps a path for practices to provide assurance, auditing and consultancy?

 

Considerations for the practice team

For those looking ahead at their own career, what does this mean? Transforming and evolving should be active and iterative. You can’t change who you are and what you do overnight. It will need to be in context of your chosen path. Are you a sole practitioner, running a bigger practice, holding an operational role or client-facing?

But the ACCA has picked out ten aspects for you to consider. For those in career mode, being flexible will be key in staying relevant as business models and customer requirements change. Understanding the impact of digitisation on the practice landscape is really a must – and should be integral to your development.

Because of these two factors, job roles will appear that are lesser-known or new, but might help you broaden and develop your CV. “With career paths less certain, thinking laterally about future job roles is critical,” the ACCA states. In essence, continuous learning and showing a hunger to improve “future-proofs capabilities and ensures enduring competence”, it adds. Building an online brand and being aware of the benefits and drawbacks of things you post on social media are also critical. “Online career visibility is vital in the digital age,” states the report.

Making sure that CVs represent your skills will be more important than previous job titles, it believes. “’Competence’ is king,” states the ACCA.

Collaboration, an issue for many silo-centric accounting practices, will be vital. Teamworking, particularly cross-function, service line or discipline, will provide the best service to either internal or external clients.

While the term ‘data scientist’ has been bandied around for many months in the profession, making better use of data and building an ability to better analyse different formats and types of information will be “a cornerstone” of accounting and finance roles.

But don’t forget to look all around you. As the ACCA states, we are moving to a point where several generations will sit in the workforce. For those developing their career they must not be blinded by the future, but take heed of lessons learned by others over the decades. “With different entry and exit points into the profession, the diversity of talents across all ages is enriched,” it states.

 

Considerations for practice employers

If you employ people within your practice, how do you as an employer respond to the opportunities and challenges ahead?

The ACCA’s first point is probably more focused on corporates, but could still apply to smaller and more collegiate professional services firms as well. Does your practice demonstrate a purpose and contribute positively to society? Practices, in their support of clients, tend to do this by definition – but not many spell it out clearly. “Employers that can frame and articulate their broader purpose successfully are more likely to be attractive to potential employees in the future,” states the report.

Succession planning is an ongoing problem for the practice community. And the ACCA highlights that career paths must be open and visible – this becomes even more crucial if roles are changing: “Do they support building a pipeline of retained talent for the future?”

As in the employee-focused suggestions, the ACCA flags up the responsibility of employers to build collaboration within their organisation. Team-based projects and encouraging people to move out of ‘silos’ is recommended.

As employees must make a big effort to continue their development, so practice owners must support their team in doing so. Digital learning is becoming a popular way to enable such development.

Technology-driven change can create apprehension in many practitioners. It’s not that the tools aren’t helpful, but the pace of change and increasing choice means that workarounds and organic change seem easier and more manageable than revolutionising how a practice is run and structured. Such fear is also heard by team members, who fear that efficiencies and automation will see them out of a job. Taking the opportunity to develop a practice using technology must be grasped, but careful consideration of how to redeploy staff must be considered – along with communicating that change.

Finally, evolving your practice will mean new skills and inevitably new people coming on board. Creating a diverse workforce will have a positive impact. “This isn’t just a moral obligation,” states the ACCA. “Workforces that are more diverse in a range of different aspects, for example gender or ethnicity or culture, are seen to be more innovative, and various studies continue to identify correlations between different diversity measures and improved organisational performance.”

The ACCA report can be found by clicking here.

 

Setting the standard – why AdvanceTrack’s latest ISO certification is so important for clients

AdvanceTrack is proud of its latest ISO certification for business continuity (ISO22301:2019) but what does it all really mean?

Kevin Reed steps into the shoes of existing and potential clients to ask Vipul Sheth, MD to explain why they should be comforted by this ‘badge of business resilience’.

Q What is the ISO and this particular ‘standard’?

A It’s an international measurement tool of competence and excellence in a particular area – to demonstrate the use of best practice across a range of areas…we also have ISO 27001;2013 Information Security Management, ISO 9001:2015 Quality Management and British standard BS10012 Personal Information Management System. It’s great to have an external body review what you as a business are doing in a particular area.

This one is about business continuity and the ability of our business to manage, with very clear direction, how to continue to manage the business where events occur that are out of the normal day-to-day business. You just have to take the pandemic as an obvious example – six months’ ago we would have thought something like that wouldn’t affect us but now we’re all more cautious about who we do business with and how. We want to give customers the confidence that we are a resilient business.

Q Why do you think it’s important to AdvanceTrack and why has it been undertaken now?

A It’s important to us as a business because it hit home to our full team that they have a clearer direction of what to do, should certain scenarios present themselves. One of the scenarios we thought about was me dying… I hope to be around a long time – but something like that could be detrimental to the business. If I’m not here, someone has to have my thoughts on how things then move forward. What’s important is that the business continues to operate without me.

The pandemic, rather than applying for the standard, had got us thinking in more depth about what sort of things might happen and to be better prepared to deal with them.

With the pandemic we had a good bunch of people in our team who managed our migration to working from home successfully. If that is to happen again, it’s now enshrined with our formal disaster recovery and business planning processes.

The last few months showed us it is even more important that we demonstrate our ability to cope in incredibly challenging circumstances.

Q Why is it something that should be of interest to AdvanceTrack’s existing and former clients?

A Our existing customers will know about this direction of travel. After our first client comms around the Pandemic, one of them said ‘we knew you’d have it under control’.

Existing clients see what we do every day, but for someone that doesn’t know us, gaining this certification gives them additional comfort. In very trying circumstances you will know that we have a robust business process to continue to be supported, and that it’s not something being made up as we go along. Gaining the standard means we faced a rigorous stress-testing of processes – of how we operate now and what we might face in the future.

Q What has been the process of audit and achieving the standard?

A It followed the way most of these standards work. There is initially an overview and analysis taken by the standard’s auditors that you have the basis for commencing the certification process. That’s effectively ‘day one’ – auditors come in and look at documentation to support attaining the standard.

Then you also have to have an internal audit process, where you look to identify improvements to address before the ‘actual’ audit. However, we also used an external body to undertake the internal audit – we didn’t want that stage too ‘friendly’… we went for rigour.

Then in the external process they’re seeking evidence that what we say we can do is actually something that is beyond the documentation. Such as demonstrating how we’d handle if our servers went down for example, or one of our buildings suddenly didn’t exist – however unlikely these scenarios may be. It’s then a case of showing how long can you operate without impacting service.

Q How does it align or complement with other standards you’ve achieved?

A We’ve always tried to demonstrate excellence – which is why we already have core standards. Allied to that it’s about showing consistency of delivery – that we’re ‘continuous’. What this has been about has been exactly that, even in trying circumstances.

Before we decided to go with this standard my phone ‘crashed’ and the backup didn’t work. I lost a lot of contact numbers. I told our CTO that this stressed me, and made me think about the business. As a result we ramped up the availability and resilience of our servers, shortly after this event, so we would lose very little data even if there was a huge problem.

Q How does the standard set you apart from competitors?

A There’s a reason why accounting practices work with us and stay for the long term. It’s our consistent approach, high standards from a delivery point of view but also security and infrastructure. Ultimately, I sincerely believe in the abilities of AdvanceTrack’s senior management – that they’re better than our competitors.

Q What’s the future for AdvanceTrack in context of other certifications and standards? What are your next improvements?

A We’re not ruling out other certifications – but these current ones are absolutely to the core of what we do. I’m sure as we evolve then other certifications will become important to us. It’s important to note that we don’t ‘chase’ certifications to puff up what we do. We strive for the best, as I’ve already outlined, in terms of service, security and resilience – these certifications are the upshot of what we do and try to achieve on a daily basis.

Cover drive – what ISO 22301 means for business continuity

The ISO, in its own words, is an “independent, non-governmental international organisation with a membership of 165 national standards bodies. It uses this vast network to build international standards that are “consensus-based” and “market-relevant”.

ISO 22301:2019, of which AdvanceTrack has completed certification, focuses on security and resilience. Namely, requirements for robust business continuity management systems.

The certification requires rigour in a number of key areas:

Organisational context – an understanding of how the organisation works, for whom, and what that means for the scope of its business continuity requirements
Leadership – How the business continuity policy has been formed, and its communication to interested parties; alongside set roles and responsibilities
Planning – The determination of risks and opportunities, alongside addressing them; and establishing and determining business continuity objectives
Support – Documentation and resources relating to the plan
Operations – Impact analysis; continuity strategies and solutions; implementation of solutions; recovery plans
Performance evaluation – Monitoring and assessment by internal audit and management of performance against business continuity metrics
Improvement – Corrective actions and continual improvement.

Source: ISO (iso.org)

take time make time

Being able to fight clients’ fires, or support their growth plans, are key steps in increasing your practice’s value to them. We cover how you can build this capacity within your accounting firm

The most successful accounting practices are those that have the capacity to either react, or be proactive, with clients. Ultimately this enables a firm to deliver a higher level of client service. If AdvanceTrack looked at our top clients, they have some 15% of spare capacity to deal with issues or broach things with their client.

But how do you achieve this? Well, first you have to take a step back and consider how your firm currently works and your attitude to technology.

 

Practice drivers and technological advancement

There are a range of drivers of change in an accounting practice, and these will vary in value dependent on the varying challenges it faces. However, there are key areas of which one or more will be on your radar most times. These are:

  • Number of staff/utilisation
  • Timing of service delivery
  • Use of offshoring/outsourcing in the practice
  • The pricing model used (fixed or variable)
  • How work is delivered to your clients
  • Frequency of invoicing

All these drivers can be impacted by the adoption of technology. But firms adopt technology at different rates, even in different parts of a single practice. Martec’s Law sets out pace of technological development versus change in an organisation. Most organisations are held back by the speed at which the technology is introduced into the business, and later have to ‘reset’ – in other words, effectively to start again. This ‘reset’ might mean reorganising a department or function – for some practices it might mean their natural end.

Consider within your own practice how quickly some teams or individuals have adopted change or new processes and technology. A prime example is a client using cloud accounting such as Xero, but the year-end process is an annual one that is completed months after the financial year end. If that feels like how your firm engages with clients, then neither party is benefitting from the technology improvements that software companies are introducing.

So, what are firms – namely you – going to do to respond? There are varying approaches, but it’s probably best to adopt and utilise the technology that will have the biggest, most positive, impact on the practice.

 

Help your teams, or the practice as a whole, build capacity

Press the reset button intermittently across the organisation. Consider where there is a wholesale change in the systems and/or process as a way of speeding up change.

The image (on page 3) shows the typical difference in perception of cost/value between an accounting practice and the client. Accounts processing and ‘being compliant’ for audit are allocated a lot of value by the firm, but the client attaches little or no value to them. The most valuable part of the service from the clients’ perspective is your meetings with them, and implementation of advisory services – plus the follow-up meeting.

So, if the compliance part of the business is perceived to have the least value, shouldn’t this be delivered at the lowest cost and in the fastest possible time?

As the MD of an offshoring/outsourcing business, I’d put the case that all firms need to look at the capacity required to not only deliver the service, but leverage any change to grow the firm. Our most successful accounting clients have ‘spare capacity’, which they achieve through a mixture of technology and strategic use of our outsourcing/offshoring solutions.

The question you should ask yourself, then, is: “How much capacity can I free up?”

 

Calculate your capacity plan

Using a ‘top-down’ approach, consider:

  • Predicted client billings
  • Write off allowances (plan should be zero)
  • Special work

Using a ‘bottom-up’ approach, consider:

  • Available hours of staff
  • Expected productivity of staff
  • Budgeted rates of staff

Any difference will be a surplus, or shortfall, of capacity.

 

Improving processes will increase the capacity of your firm

There are a number of tasks that need to take place to improve your processes, which will in turn help you build capacity.

First, you must identify your internal ‘champion’ to lead the process change, who must build a framework for change. Identify key leaders and their role in the review of this process, ensuring that non-compliance with the process won’t be tolerated.

Then you can build detail around the new process, once compliance has been signed off and key leaders have agreed on the changes. You’ll never make everyone happy, so consider the majority view. Also consider key risks and impact on clients.

 

Building an efficient team

Next you must make sure your team is fit for purpose. Training is the key to this, and this is done by building a training culture. The main areas to consider are:

  • Process training
  • IT training
  • Personal skills training (e.g. negotiation or presentation)
  • Product training (e.g. Xero, etc)
  • Share your training plan with a wider group (internal/external stakeholders)

 

Delegation skills

Build a delegation plan. Consider the skills needs in your business and ensure the team have the training to do the job. They must focus on solutions and ensure you hire and keep the best talent.

By having the right team balance with appropriate skills and experience you minimise rework, minimise errors and write-offs, particularly if work is otherwise delivered by senior managers and partners. Finally, if senior staff are freed up, they can be more client-facing, delivering more to the clients and bringing in new business.

Based on your client behaviour, it’s then key to try and smooth your workflow over the year. How do you do this? Well, build faster turnaround times within your production teams. AdvanceTrack has been building this for firms using their offshore outsourcing capabilities. And then ensure that there’s free capacity across the year, not just certain months, allowing the firm to grow and deliver based on client demands.

 

What are you measuring within the firm?

I know from personal experience when working in larger firms that KPIs are given to staff they have little or no control of. As a result, if you measure them against these, it is demoralising as seen as unfair. So, ensure you measure people on things they have the power to manage. You must also give honest and regular feedback.

Team members should be encouraged to advise management if job budgets can’t be met. An earlier conversation may reduce the write-off through open conversation with the client and team. Finally, ensure each team member has a job budget and delivery deadline.

Bear in mind that feedback from staff and clients will be critical. Review successes and make improvements where necessary. Can you recommend any advice to the clients based on the information your team has reviewed? Consider if that advice is billable, and whether a fee discussion is required.

If a client has poor bookkeeping or other issues, these must be communicated. If these are not communicated, they believe they provide good books. Firms across the industry are guilty of correcting the errors without communicating this to the client.

Make the client accountable for their actions around timeliness, accuracy of information provided, query resolution and payment terms. Consider the purpose of an engagement letter and ensure it focuses on the client relationship and not legals, which can be dealt with separately.

 

Clients

You’ve built your capacity plan. You’ve trained your teams and most importantly, you’ve adopted technology and have a plan to take the most benefit from this, so you are closer to the technology line in your improvement process.

You then consider how outsourcing/offshoring can help deliver more. Like all things, you need to consider the people in your business and ensure that they buy into the vision you paint of the firm and this will be driven by the type of person and possibly age profile of the team members.

 

Ready to start growing your firm? CLICK HERE

scaling for growth

It was ‘accountants galore’ on AdvanceTrack’s latest webinar, ‘Scaling for Growth? Building an Advisory Mindset and Firm’, which discussed the cultural and strategic approach towards making a practice invaluable to its clients.

AdvanceTrack MD Vipul Sheth started the conversation by highlighting the key challenges of changing how a practice – or any organisation – operates. These include altering mindsets, successfully adopting new technology and embedding change into the new normal.

“People are fearful of change, and will look to maintain the status quo,” said Sheth. “So leadership is required to change doubters to believers, and champions are needed to keep it all on track.”

Joe David from accountancy firm Nephos said that his background as an accountant in industry gave him a mindset that creating and analysing good data was key in supporting the making of decisions. This led him down the path of creating an advisory- and technology-led practice.

Clarity’s Aynsley Damery said that established firms have to go that bit further when it comes to driving change, particularly if ingrained in providing services based purely on clients’ historical information. “It’s about looking forward as a firm, and looking forward on behalf of your clients,” said Damery. He said that ‘champions’ within the firm, who will help instil that mindset while managing change projects, were vital. “They’re so important in terms of connectivity between management and the team – interpreting the vision and how it will work.”

Practice Ignition’s Trent McLaren said: “You must set out from the top, across the entire firm, the direction and why you’re changing. You also have to let them know about progression, or you’ll inevitably end up with silos of knowledge.”

Click here to access the webinar.

AdvanceTrack’s most recent webinar was one of its most thought-provoking and interesting.

On the topic of ‘value’, three experts joined AdvanceTrack MD Vipul Sheth to discuss what value means in the context of an accounting practice, its people and clients.

Andrew Van De Beek, founder of Australian accountancy firm Illumin8, kicked off proceedings with an intensely personal and heartfelt presentation. This tone supported his message: work with clients you like, and understand the purpose of their business, before you can deliver value.

Clients are usually sold an expectation of what it will be like to work with another party, and are then disappointed with the reality.

“When I started my firm eight years ago, I’d already worked in a smaller firm and a Big Four firm. I hadn’t really enjoyed what I was doing – ticking boxes. That changed when I realised there were businesses behind my work – it changed my thinking,” he explained.

Van De Beek and his firm undertook soul-searching of who they were as personalities, and who they wanted to work with. “It was a transition from ‘pretending to be an accountant’ to ‘here’s Andrew… who is good at accounting’,” he said.

His official ‘work photo’ was him in a suit and tie. “I asked myself ‘why am I putting this shirt on?’ The branding was this picture while I was really [a guy in a t-shirt drinking whisky],” he said.

“In other words, the branding was the guy in the suit, but when clients interacted with us they got something different.

“If we’re pretending to be someone else, act a certain way, do things a certain way… it won’t hit the mark,” Van De Beek added. Accountants often present themselves in a similar way, providing similar services in the same style – “it just won’t hit the mark”.

Karen Reyburn, founder of accountancy marketing agency PF, carried on the thread. She said accountants feared being themselves, but making such a move towards fully representing yourself in your work normally required “small changes over time”.

However, such a move was important in terms of winning and working with clients. “Your brand is not for you, it’s for clients,” she said. “They will ask, ‘is this real? Are these people for real?’.”

When there’s a mismatch “they will hesitate to work for you”, Reyburn added.

The step towards online communication precipitated by the coronavirus pandemic has seen accountants behave more as they are, particularly where they talk to clients from their home environment.

“I hope that those moving through this see one of the big lessons that ‘me and my firm need to be who we are and show it’,” said Reyburn.

Building that authenticity is an aspect of setting out how to understand what value is in terms of clients, said James Ashford.

“Accountants do amazing [technical] things: balance sheets and P&Ls, but I only care
about what’s going on in my life. I want to be able to pick my kids up from school and my wife be safe, along with a storm-proof business. That’s where accountants can have an impact,” said Ashford.

On pricing, Ashford said you should be “consistent and profitable in what you need
to deliver”.

“And compliance isn’t dead,” he added. “It’s our most profitable work [at the accountancy practice where he is a director] because of how we charge it, manage our efficiencies and deliver.”

View the webinar by clicking here.

Many firms know that AdvanceTrack help drive efficiency into theirs and their client firms’ process. We also help clients move to the cloud. We are a migration partner for Xero as Xero Partner firms want to move their client to Xero at scale.

One of our long-standing clients, MHA Carpenter Box recently approached us as they had two large companies to move from Sage onto Xero. Whilst there are tools that help “standard” clients move to the cloud, these companies were international in their nature.

The biggest challenge that both the end client and MHA Carpenter Box faced, was the need to move a large volume of transactions across multiple years. The most complex part of the migration was dealing with foreign transactions. These were not just bank transactions, but purchases and sales with the exchange differences needing to be allocated correctly in line with the financial statements.

Across the 2 entities that needed moving across, there were 1000’s of transaction lines that needed migrating across and reconciled.

Our Xero trained teams were given access to the data before starting work. They agreed a plan to move the data using technology and their knowledge of using Xero effectively.

Once the data had been moved from Sage into Xero, our teams carefully reviewed the data and ensured that the client data had been transferred effectively and accurately. With trained accountants and bookkeepers overseeing the process, the migration was delivered cost-effectively and accurately.

Clean, quality data which the client and firm will benefit from in the future as the reports will be meaningful with cloud tools that can now be connected using Xero.

Client feedback

There are great tools like MoveMyBooks to move client data to the cloud. Where there are complexities such as Foreign Currency, we’d certainly use AdvanceTrack again to help us transfer the data.

Does your client need help moving data to the Cloud? Get in touch with the AdvanceTrack Cloud team.

tech, Xerocon, outsourcing

In September, we were at Xerocon Brisbane. Whilst we were there, we had the opportunity to catch up with our Australian clients, see some new faces and get the latest updates in tech. 

The biggest move we noticed in Australia is the increasing move into SMSF and bookkeeping for clients by accounting firms.  Clients want a holistic service from their trusted friend – their accountant!

Often the two go hand in hand and firms are increasingly asking us to manage the SMSF record keeping for the individual fund, but more importantly, the business owner wants the accountant to look after the business’ financial records.  This trend, which started a while back is turning into a flood, with businesses recognising that their energies are best spent in driving their business forward. 

Their accountant is now better able to help clients with Cashflow management using tools like Float, Fluidly, Fathom and Futrli for example. They can do this, because they are responsible for the regular production of management accountants, all enabled through technology. This was a very important growth area. 

In 2018 we wrote about the top three issues facing Australian firms

Talking with professionals this year in Brisbane we found that outsourcing is becoming more of an accepted way to deliver work. Some firms also wanted to hear about our dedicated offshore resource. 

But most successful firms among them have truly embraced the fact that their role has changed. 

They’re outsourcing as default, from compliance through to reporting, so that they can have a consistently proactive rather than reactive relationship with their clients. 

What moved them to make this decision?

1. They realised they’re not in the business of accounting

 

What?

A confusing statement for an audience of accountants. 

Our friends at GoProposal wrote a really great blog titled ‘You’re no longer in the Accounting business’.

It’s just as true in Australia as it is in the UK, perhaps even more so. 

When we meet accountants we often find ourselves asking them – what is it that your clients want? Yes, they want to save tax. Yes, they want to know that their affairs are sorted. But what do they really want? What are their goals for the growth of their business, for their family, for their future. 

The successful firms are now in the bigger-picture business. They’re having conversations with their clients about the things that really matter. 

There’s a growing demand for wealth management advice

One of those bigger picture conversations that’s in demand more and more in Australia is wealth management. There’s an increasing need for advice in personal and business wealth strategy, pensions and retirement, and many accountancy firms are filling the gap by moving into wealth advisory services.

As more individuals manage their own pensions with a self-managed superannuation fund (SMSF), the work involved is also rapidly growing for those accountants who have moved into the wealth space. This means two things:

  • The firm will be pushed to deliver more compliance work
  • The firm owner needs to free up more time firm-wide to have bigger conversations with clients and offer more value

As these two things happen in tandem, it means more training, stronger systems and consistent processes. This is where the need for outsourcing has become more than just offloading compliance work. At AdvanceTrack, our goal is to help you create the business structure to have the very best conversations with your clients. 

2. They understood they need to create the right environment for today’s staff

 

We partner with firms in the UK and AUS/NZ and we’re seeing that the same issues arise when it comes to staff retention. Once qualified, if not pushed to their potential, staff are leaving smaller practices for the big accountancy firms or migrating to tech companies. 

Australia is further along than the UK in digital development, and the tech space is an attractive option for graduates who are now learning to add value at an earlier stage in their career. 

At the same time, we’re seeing desktop software being discontinued. BGL, Australia’s leading SMSF admin software, has retired its desktop product in December. 

It’s adapt or be overtaken when it comes to transitioning to new technologies and giving clients real-time information. Business owners can access their finances at the click of a button now, meaning that roles have changed whether we like it or not. Cloud integration specialist, Chief Data Officer, Virtual FD – These are the next generation of job titles.

Your staff already don’t want to be stuck delivering low-level work now, and they won’t want to be stuck delivering low-level work in the future. And remember, it’s not why you became an accountant either! 

The firms who are seeing real growth realised early on that their people are working at the wrong level, and they’re outsourcing their core services to make room for more skilled, challenged and satisfied staff. 

Ask yourself these two questions

If you’re stuck in a compliance cycle right now, and you can’t see a way out of the hamster wheel, first ask yourself:

  • What do my clients really want?
  • What do my staff really want?

Then take a look at how you can go about joining the global community of firms on this outsourcing journey, and realise your new potential as an evolved accountant. 

What can I outsource in my firm?

 

Outsourcing is no longer out of the ordinary. The outsourcing journey begins with accepting that.

We all know that the accounting profession has seen some big changes in the last decade – out with the old and in with the new, the more efficient and the most profitable. 

Some small firms with a handful of tax-only clients may be able to coast along for a while doing things the way they always have. But for those looking to grow and thrive, it’s a case of adapt or be replaced. 

That being said, it seems there’s still some lingering misunderstanding about outsourcing, what can be outsourced, and how it can contribute powerfully to the growth of your firm.

As far as we’re concerned, outsourcing isn’t about just getting some help with compliance.

It’s a tool to help you transform the nature of your interactions with your clients. 

 

Are you stuck hoping the dam won’t crumble?

 

When clients come to us, they’re usually overwhelmed in one way or another.

Remember the story about the little Dutch boy and the dam? 

In the popular fable, a little boy notices a crack in a dam. Since much of the Netherlands is below sea level, a leak in the dam could be a fatal disaster. So the little boy plugs the crack in the dam with his finger. The leaking stops. The little boy knows that if he moves, the hole will get bigger and bigger and the town will flood. 

When he is finally found, the boy is hailed the hero of holland! It’s a tale of bravery. The only problem? He is still the only solution for an imminent flood. 

We find many firms in the same position, stuck recruiting anyone and everyone to plug the holes in their own businesses before an imminent flood. Often we find the business owner is doing their own part to plug the dam. At this stage, we find the same issues stopping you from taking your firm to the next level:

  • You just don’t have enough staff or time to find them
  • Your existing staff are doing work at the wrong level 
  • You’re doing, rather than advising as the Business Owner
  • Your team don’t have the skills required for you to scale up
  • You’re unable to retain staff long term
  • Your top talent are recruited by bigger firms with more to offer

Our solution?

 

Build a damn wall

 

Instead of trying to fill the gaps with anyone who is willing, change the structure of the way you do business. Build a wall so that you’re never fighting floods and you can do the work that is going to be the most profitable for you. 

That being said, you don’t have to be in a tax work crisis for outsourcing to work for you. You can outsource at different levels within your business, to allow you to deliver more than just accounts, or find the skill set to break the barrier into advisory work. 

We created the outsourcing journey, to help you identify where you are right now, but most importantly to show you what’s possible. From all of our experience working globally with firms like yours, we’ve identified that this is the route that leads to scalable growth and profitability.

Start – Everything is being done in-house. You’re maintaining, not growing.

Regular User – We combat capacity by starting with one process and nailing it. By outsourcing accounts and/or bookkeeping, you’re scaling up your team’s hours for higher level work.

Strategic user – Getting to strategic level is exciting, because you’re able to revisit your internal roles and really start to level up your team. At this point, you’re outsourcing reporting and the team are reviewing rather than preparing. Your Account Managers are able to step up and have more conversations with the clients. 

Strategic + – At this point, outsourcing is your default method for accounting, bookkeeping and reporting. You now have the ability to increase your billable rates and your departments capability. At this level, your outsourced team are giving prime delivery, allowing your team even more time for advisory work. 

Growth – You have built the wall. You’re growing at a fast rate, with the right structure for having the very best conversations with clients, and the right team skillset to support your client base.

 

It’s not just about freeing up your time, it’s about what you use your time for

 

Ask yourself why you became an accountant. 

You are the most valuable person to your client, which means that you need to focus on what they value the most in order for your own firm to be more successful. If you’re stuck doing work at the wrong level, you’ll eventually become obsolete in the eyes of your clients.

Whether you need to build a wall to allow you time to find the right staff, or get your existing staff in the right seats for scalable growth, or you just want to do more of what you enjoy – outsourcing to a trusted team can help you accomplish your goals.  

Clear on where you are in the journey? Tell us what you need

We don’t really need to tell you that Making Tax Digital is well underway – it’s been at the forefront of most accountant’s minds ever since HMRC first announced their rollout plans two years ago. 

It has been the focus of most accounting events, many many talks, and countless webinars. But so far, there’s been a lot of negative rhetoric around tax going digital:. 

  • It’s coming
  • Better hurry
  • Biggest change to tax system in 20 years
  • If you’re not ready, you’ll face penalties.
  • How to make MTD pain free
  • Are you ready?

As an accountant and adviser there is a big opportunity in Making Tax Digital, and it’s all about how you frame this change to your clients. 

 

The benefit of Making Tax Digital isn’t digital tax

You might be finding it difficult to communicate the benefits of MTD to your clients because you feel like it’s a burden to ask them to step up and do more, more often. 

It may feel like the only benefit you’re getting from MTD is that it’ll keep your clients on their toes. It’s a good excuse to hammer home that they can’t be late submitting records to you, but little else. 

 

Reframe the value

MTD has big business benefits for your clients. That benefit to them isn’t that tax is going digital. They don’t care about the formalities of submissions – that’s your remit. The benefit is the value they’ll get from moving their accounts over to the cloud.

  • It’ll eliminate their fear of costly mistakes
  • They can transform the productivity of their business and better prioritise their time
  • They’ll be able to predict issues before they arise
  • They’ll cut costs and will have more available cash 
  • They’ll have the tools to grow their business
  • They’ll be in complete control of their business as it does grow

Not to mention that moving to cloud software allows your clients to have an upgraded relationship with you. You’ll become more like a strategic business partner than an accountant. 

 

Your confidence transfers to your clients 

For many business owners, Making Tax Digital is a blip on their radar. They’ve got lots of other things to think about to keep their business running day to day. They’ll likely be leaving all the MTD stuff in your hands, and putting their confidence in you, because you’re the tax expert.

That means that you need to have confidence in the value you’re delivering, rather than fearful of the implications of HMRC demanding more. If you’re scared about your ability to deliver, your message will be wrong. 

The thing is – you can deliver it! You likely already are…

Think about your best client – one who’s already moved to cloud software and seen success. Think of how it has transformed their business. You know the value, because you’re seeing it in the work you’re already doing for your clients. 

You just need to look beyond the features of cloud accounting – the apps themselves or the ease of bookkeeping. Instead think about the emotional benefits – less anxiety, more confidence, more time at home, more control, more money, more status. 

Many of you will already know and be using some form of pricing and onboarding software. Whichever platform you use for generating proposals and automating the process, what these products are really offering Accountants is a tool to price consistently, sell more confidently and grow more profitably. 

What are the top three emotional benefits of moving to the cloud, specific to your clients? Create your next conversation around those next time you talk about tax going digital. 

And if you want further accountability in creating those relationships with clients, then talk to us about our Growth Academy, designed to help you move away from deadline driven work and become a master of deep, systematic change.

 

 

Is outsourcing the same as offshoring?

In short, no. 

But we won’t end the blog there, because this is one of the most common hesitations from firms who are new to the idea of outsourcing, or just starting to dip their toes in. There’s a big misunderstanding that outsourcing and offshoring are just two different words for the same thing. 

At AdvanceTrack, we offer both offshoring and outsourcing, and the model that works best for you depends on the stage you’re at as a firm, and how your processes work. 

The compact answer

Offshoring = giving work to a third party overseas, or moving functions of your own business function overseas

Outsourcing = giving work to a third party anywhere

It is becoming more common for businesses to offshore processes to companies overseas

The word ‘offshore’ has some negative connotations to it, especially in the world of finance. Don’t worry – when we talk about offshoring here, it has nothing to do with international banking. Offshoring refers to a business contracting work out to another country, or moving their own business abroad, in order to take advantage of favourable economic conditions.

Offshoring isn’t exclusive to product manufacturing. It is becoming more common for businesses to offshore processes to companies overseas where the cost of labour is lower. It’s all legit and there’s nothing to stop you doing so. 

The benefits of our offshoring model compared to others:

  • You can scale with confidence: Build a team knowing that you can scale it, without the day to day IT and Training challenges
  • It’s secure & quality is assured: It is managed and controlled by international Quality and Security Standards audited by BSI. 
  • You have holiday and sickness cover: You can save yourself time and HR hassles and never lose a day of production.

You can find out more about why we outsource to India here.

You can outsource to a service provider anywhere, in order to utilise greater expertise

Outsourcing refers simply to the practice of hiring a third party or individual to carry out work that has historically been carried out in-house. You can outsource to a service provider anywhere, in order to utilise greater expertise, or free up more time for you to focus on the work you love, that you’re best at. That service provider may be in the same country or even the same local area as you, or they may be overseas. 

The benefits of outsourcing:

  • Years of expertise – without having to take on a new employee and train them up to the level you require, you can give the work to a specialist with years of experience under their belt. 
  • You have more time to focus on more important areas – you won’t have to spend all your time and energy on the process you’re outsourcing, freeing you up to focus on the areas that need your attention. 
  • You can save on tech – you can rest assured your expert has the tech they need to do the job. If you’re not having to provide the infrastructure to support the work in-house, you can save on technology expenses. 
  • A difference in time zone may be advantageous – you may find outsourcing outside of your time zone works better. You can go to sleep and wake up to completed work!

You can read more about why we suggest outsourcing here

Saving money is desirable, but the decision to outsource should not be driven by the desire for cheap work

Where the confusion between offshoring and outsourcing is most detrimental is the perceived benefit of cheap labour – that the point of either is to simply deliver your existing services or products at a cheaper cost. Saving money is desirable, of course. Who doesn’t love to save money? But you may find that spending less money results in a higher cost to your relationships with clients. 

Our clients don’t outsource to us because they want us to do the more manual work at a cheaper rate. For starters, how would you go about deciding what your ‘cheaper’ work is?

Your compliance function is your core work – the work that needs to be done well and done consistently. It isn’t something you want just anyone to do. You certainly don’t want to compromise your high level reporting and life-changing advice for the sake of cheap rates either. 

Our clients work with us for our expertise in the industry of accounting, for our desire to make them more proactive in delivering value to their clients – but mostly because they have the right mindset. 

The most successful outsourcing is driven by a growth mindset

It’s not about saving money, but it’s also not exclusive to the big firms either. We’ve worked with Sole Practitioners, two office practices, multi-partner practices and major international groups. We’ve found it’s not about the size, it’s about the attitude. The firms that see the most success are those who are able to look at their current offering and say “I want to be able to do more”. Those who don’t want to be stuck doing compliance only. Those who don’t want to see staff leave to do higher level work elsewhere. Those who want to be an integral part of their client’s business strategy instead of waiting on a monthly conversation. 

We wrote more about those types of firms here.

Choose the engagement model that works best for you

Do you want to:

  • Do more of the work you love?
  • Improve the client experience by having the time to offer more value?
  • Free up space to train more of the team to deliver your high level work?
  • Have the processes in place to make more profit?

Great! All you need is a little help figuring out which model suits you best. 

Scalable Delivery Model (Outsourcing)

  • You have a standardised process
  • You have fluctuating demand across the year
  • You understand deadlines and will work with our teams to get the process right
  • You understand that a team supports you

Dedicated Offshore Delivery (Offshoring)

  • You don’t have a standardised approach
  • You have steady workloads across the year
  • Your service is quite bespoke to your clients
  • You want to speak to the same team members every day

Ask yourself where your business is right now, and what you want to achieve. Then let us help you figure out which option is best for you. Take this short questionnaire to tell us about your outsourcing needs. It only takes a few minutes.