A huge part of your success in automating outsourced accounting has to do with the mix of clients. These are the kinds of clients that you work with. Will your accounting practice change the mix of clients it has?
What Creates Happier Accounting Clients?
Creating happier clients starts by having satisfied employees that you’ve gained through strong recruiting efforts.
The goal of any accounting firm should be to help clients be successful. You should be helping your client’s businesses run better, grow faster, and become more profitable.
The ability to provide proactive strategic advice is among the top three things that clients look for when selecting an accounting firm. They’re not looking for accounting firm based on how great they are at doing repetitive tasks.
Sometimes getting your head above water is hard enough, so having time to provide strategic advice to your clients is often postponed. However, your exceptional service can be augmented by technology.
AI Scales Much More Gracefully Than HR
Accounting firms often face labor constraints, or a shortage of good candidates, that keep them from adding value for clients. However, if you leverage AI technology, you can reduce or eliminate bottlenecks created by a lack of full-time employees.
As it matures, AI is going to significantly improve your accounting firm’s ability to provide strategic advice for your clients by reducing those labor constraints and helping to analyze and predict strategic advice that you can provide to your clients.
AI technology for accountants will very likely allow firms to triple their client base and provide better service without adding more full-time equivalents (FTE). This is an interesting prospect for the coming next few years.
Outsourced Accounting Services vs. Managed Accounting Services
Accounting firms are used to measuring their cost of labor, cost of goods sold, and inputs while improving those numbers over time. Something that is especially relevant is how pure outsourced accounting service providers, bookkeeping firms, and virtual CFOs compare to traditional accounting firms, and what their client mix is on outsourced services and managed accounting or entrepreneurial services.
For some accounting firms, outsourced accounting services are a small part of their business. For others, it’s their entire business. Many accounting firms are interested in looking at AI and machine learning to see if it would help them provide outsourced accounting services on a more regular basis. Larger accounting firms may be interested to see how to increase their presence in outsourced accounting.
What percentage of your revenue comes from outsourced accounting? Share your thoughts in the section for comments below.
To learn how accounting and bookkeeping firms can prepare for AI and machine learning, watch the webinar recording on “Automating Outsourced Accounting: How Accounting and Bookkeeping Firms Can Prepare for AI and Machine Learning.”