Does a firm’s software really affect its profitability? Accounting firm software is just a tool, after all. The true measure of a firm’s success might go much deeper than the software it uses, but technology can make a difference. If you missed last summer’s AICPA ENGAGE conference, you might have missed Jody Padar’s Let’s Get Radical podcast interview with David Primes of Sobul, Primes & Schenkel. During the interview, they discussed the cloud and how cloud technology has made a difference for the firm.
Staffing in cloud-based accounting firms
Although many firms report continued staffing challenges, cloud-based accounting firms often find their technology is a great recruiting tool. According to Primes, “We have used it in recruiting as a benefit – not just the cloud, but the cloud facilitates that whole remote thing – the ability to let people work on the hours that work for them and the locations that work for them and certainly we consider that a recruiting advantage when we can tell people we have built out and we’re continuing to build out this remote ability.”
Primes talks about cloud technology as a competitive advantage for his firm. “We’ve always felt that adopting technology early gives us a competitive advantage against other firms our size in the marketplace we’re in. So the way you get that competitive advantage is to adopt early and in today’s world that’s going to mean the cloud.” Cloud-based accounting firms are frequently more efficient than their old-school counterparts. And their tech-savvy brands are more attractive to clients as well.
The security myth
All accounting firms deal with some level of risk. Cloud-based accounting firms don’t face additional risks – they just need to apply their security policies to the cloud. Primes says, “…It’s the same risk, it just looks a little different so they think it’s a new risk. But if they really evaluated what it is that’s scaring them, they’d understand that they’ve already accepted that risk or they’ve mitigated that risk in some fashion, and the same logic will apply to the cloud applications.”