While accounting firms have historically weathered challenging economic times better than other professions, many firms find themselves struggling to maximize profitability. Managing your firm means juggling the needs of clients, staff and the well-being of the firm, even when these interests seems to compete.
In a recent whitepaper, Wolters Kluwer Product Line Manager Mark Ryburn discusses three trends putting pressure on firms, along with suggestions for how to combat them.
Trend 1: Tax prep commoditization
With the rise of DIY tax software and on-demand tax apps, many clients now see tax prep as a commodity. While clients increasingly demand lower prices, firms continue to raise prices to improve profitability. In order to reconcile this friction, firms need to clearly define the value they bring to the client.
Trend 2: Compression
Tax law continues to be more complex, and legislative changes never stop coming. Firms are feeling pressure to do more in less time. Even when the legislative environment is stable, client complacency can cause delays that wreak havoc on even the most organized firms.
Trend 3: Competition for Talent
Firms have cited staffing shortages as top challenge for more than a decade now, and the problem isn’t going away. Not only do firms struggle to attract new graduates, but keeping those employees is challenging as well. The shortage of well-qualified senior staff weighs heavily on many firms.
Like many problems firms face, these three trends can be countered to some extent with technology. “Improve Profitability with a Digital Tax Workflow” offers ideas for solving tax prep commoditization and other problems. Download it today.