Why Some Firms Thrive, and Others Don’t [VIDEO]

The key: always be evolving.

In a keynote address to over 1,200 accountants at the CCH Connections user conference in San Antonio, CCH President and CEO Mike Sabbatis called on the profession to brace for the challenges ahead by adopting “future-ready” processes today.

Sabbatis revealed findings from the new independent “Future Ready Firm Survey,” based on interviews with 400 firms nationwide, here: New CCH Study: CPA Firms Lag Broadly in Technology, Efficiency. Download the full report here.

“The future-ready firm follows best practices and is also constantly implementing a path of continuous improvement,” said Sabbatis.

With a strategic view of their client and practice needs, these firms anticipate changes and innovate across workflows, optimizing processes, people and technology. Future-ready firms also measure productivity and profitability to make data-driven improvements to performance.

“Critically important in being future ready is following a ‘Best in Process’ approach, with optimized technology solutions and workflows to create the highest productivity across business processes, helping professionals work smarter, more productively and more profitably,” Sabbatis told attendees.

The “Future Ready Firm Survey” found that while many firms are making strides in becoming future ready firms, much more can be done.

So far, firms are making progress with foundational technologies, such as scanning and electronic document management systems. Firms also anticipate significant near-term growth in both cloud computing and mobile solutions.

Future-ready firms ensure that they have the right people doing the right work. The majority of firms nationwide report that they achieve this, with 59 percent of tax firms and 54 percent of audit firms reporting that they have the right people doing the right work.

Ensuring that staff is optimized, however, continues to present challenges for some firms today. The CCH Survey found that 37 percent of audit firms and 21 percent of tax firms have people performing work for which they are overqualified.

Firms also report that they have too many people who are under-qualified for the work that needs to be done: 20 percent of tax firms and 9 percent of audit firms are challenged in this way.

Supporting a future-ready culture, many firms engage their employees in the business, particularly younger workers who have grown up leveraging technology to do things differently. Specifically, the CCH Survey found:

  • More than one-half of firms surveyed have begun to tap younger workers to evaluate technology solutions; and
  • 59 percent of audit firms and 47 percent of tax firms are consulting their younger staff in more decisions about their tax or audit processes.

Key findings from the CCH Survey in this area show that within three years, most firms will be deploying cloud-based practice management solutions – providing access to business analytics wherever and whenever needed. “Focusing on this area is critical: for example, it’s difficult to improve utilization rates or optimize workflows without metrics to measure results,” Sabbatis said.  “Future-ready firms seek ways to continuously improve and optimize their performance, by establishing analytics and deploying the practice management tools needed to measure progress.”

Sabbatis also noted that the future-ready firm requires unified solutions that span workflows and are adaptive to changing workflow needs.

“For tax, accounting and audit professionals who face constant change, complexity and competitive pressure, it’s essential that they have integrated technology platforms that deliver superior software and information solutions,” he said.

As one example, he presented the comprehensive tax workflow, with processes streamlined and supported seamlessly with CCH solutions. It means that every step in a process is made more efficient and effective through technology, and that technology facilitates the flow of work across multiple processes in a streamlined and seamless way.

“Best in Process aligns technology solutions with optimized workflows and creates the highest productivity across business processes. It’s a unified system that includes solutions that make your firm’s work flow faster, with processes that make the work flow smoother,” said Sabbatis.

“There’s been a clear migration of firms from the single source solution to the best of breed solution,” said Sabbatis. “Now, as firms recognize they need to get results faster and with less complexity and lower costs, the future ready firm is transitioning to Best in Process.”

One Response to “Why Some Firms Thrive, and Others Don’t [VIDEO]”

  1. terry

    I truly believe that the lean and hungry firm will be the firm that thrives in the future. The firm that doesn’t appreciate its customers will be the dinosaur of the industry.