AI for Accounting and Finance Blog

How Accounting is Being Challenged By Technology and New Forms of Competition

Posted by Kristoffer Roil on Jul 10, 2019 8:57:00 AM
Kristoffer Roil
Find me on:

How Accounting is Being Challenged By Technology and New Forms of Competition

With technology and new forms of competition, today’s accounting firms are being challenged. It’s critical for outsourced accounting firms to have a clear vision of where they are today and in what direction they are headed.

The following is an excerpt from our webinar, “Automating Accounts Payable (AP): How Ignite Spot Accounting Services Automates AP, Removes Human Error, and Improves Client Services.”

Putting Pressure on Traditional Accounting Firms

There are several new technology-enabled services that are potentially putting pressure on traditional accounting firms. And if you are not aware of what’s going on with these tech-enabled options for services in competition for bookkeeping, you should know that they are coming quickly.

Companies like Botkeeper, QuickBooks (Intuit), and Bench are all coming up with some type of automation or value-added services that are attacking the marketplace.

Now, this is good from the standpoint of creating more opportunity for accounting firms to learn, grow, and develop. And it gives companies like Vic .ai the ability to help outsourced accounting firms run their businesses better.

Staying Aware of New Technologies

Outsourced accounting firms need to be aware of the new technologies coming out and how those companies are capturing the attention of their clients. It can be difficult when large companies with lots of money to spend on flashy marketing campaigns come out with their cool catchphrases and grab the attention of your clients. 

But it’s essential to know precisely what these companies bring to the table, compared to what you can offer your clients. You also need to understand how you can best communicate this information to your clients while keeping yourself viable and maintaining long-term client relationships.

It can be tough for clients to compare the services being offered to them against what they get from a local outsourced accounting firm that is motivated to help their business grow.

Your clients are price-conscious. When looking at a service similar to one that’s been described here and the cost is somewhere between $100 and $500, and there’s another firm that is priced from $700 to $1,500, you’d want to know what the other firm is providing to justify the price difference.

Some of the software that’s coming out doesn’t specifically match up with the type of client you might be targeting. This is good for your outsourced accounting firm, as it wouldn’t be direct competition.  

But for customers that are looking at other options, it’s essential for you to communicate with your clients on why your firm is different and unique. It could be because of your knowledge or experience. Or it could be the consistent access you have to the team you’ve been working with for years, rather than being placed in a queue for the next representative.

 

What is your outsourced accounting firm doing to stay on top of these new forms of competition? Tell us your thoughts in the section for comments below.

To learn how Ignite Spot Accounting Services automates AP, removes human error, and improves client services, watch the webinar recording on “Automating Accounts Payable (AP).”

 

Automating Accounts Payable (AP) | How Ignite Spot Accounting Services Automates AP, Removes Human Error, and Improves Client Services

 

New call-to-action

Topics: Accounting

Download Free eBook: The Future of Accounting Technology
AI Can Be a Game-Changer for Your Firm’s Growth and Profitability | Schedule a Complimentary 30-Minute AI in Accounting Consultation

Recent Posts

Privacy Policy