Are there differences in the way practices operate, and approach tech, in different regions? If so, why? Vipul Sheth takes a global view on accountancy matters. 

If we look at accountancy practices in the regions that Advancetrack operates in, do they all work in the ‘same’ way? 

After a successful Xerocon Denver for the team, it was a question I pondered – with Advancetrack operating across the US, Canada, Australia, New Zealand and the UK. 

Different approaches, different questions 

However, what had initially struck me was how different the names of the tech providers were in Denver compared to the UK or Australia. 

There are certainly document and practice management providers that span the globe, as far as accountancy is concerned. But there are huge differences when it comes to accounts and tax production. 

The US is a huge market, but individual state laws make it a fragmented one – noted that each fragment is itself massive. This means that the tech providers, and firms themselves, must be incredibly efficient and well-run to operate across multiple state lines. 

Then we have the regulators. While the US IRS watches over the entire base of US citizens when it comes to tax returns, that’s not necessarily the case in the other regions. This does create ‘touchpoints’ for US advisers, but it also drives a production line-style offering, which is prevalent in the US. 

From a technology point of view, Australian practices are often well-advanced and operating in the cloud. However, this is borne of a drive to digitise the tax system over many years. We certainly saw Xero thrive and grow in such an environment. 

Then in the UK, after much delay, we now have MTD for IT. Hundreds of thousands of self-employed businesses have begun using accounting and tax software to book-keep and file quarterly returns. We know it’s not been easy for practices to support clients through this – and finding efficiencies and systemisation are still to come. 

Effectively, client and practice interactions in the UK and Australia/New Zealand are more digital, cloud-based, than currently in the US. 

Steering accountancy practices 

When you step back and think about it, it could be argued that the firms and the way they operate are the product of their environment. They are driven by the compliance environment, developments in technology, and clients’ attitudes towards what they want help with, how much they’ll pay and how they interact with the accountant. That is why we have practices doing different things, in different ways, around the world. 

There is, globally, a drive to digitise, operate in the cloud and try and stay ahead of the ever-increasing burden of regulatory compliance. Firms of all shapes, sizes, and location are also very aware of AI’s inexorable approach. 

Despite all this, practice leaders have an opportunity to navigate their environment in their own way. They have opportunities to set strategies, create models and select resources to deliver. Some do this well and are very profitable, wherever they’re based. 

For us at Advancetrack, we see these opportunities – and are able to support them – no matter what country or region. 

Vipul Sheth is founder and MD of Advancetrack 

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