COVID changed how we do business in the blink of an eye. It accelerated the need for remote teams, independent operations and the digital tools required to make these possible.
Agile firms responded by transforming their operations with advanced digital technologies that empowered them to survive—and thrive—in the new business reality. But most professional service firms are still figuring out how to begin their transformation journey.
Hinge surveyed scores of business executives and decision-makers from six core professional services sectors to create the Digital Transformation Imperative. This research report addresses questions and explores the pivotal trends impacting digital transformation now. Of those surveyed, 12% represented accounting and financial service firms.
What we found was eye-opening. Most firms that have adopted advanced technologies to power their businesses realized a powerful return on investment (ROI). These firms reported improvement in all key performance indicators, including operational efficiency, profitability, revenue, brand awareness and client satisfaction.
While more than 80 percent of firms understand that a digital transformation is necessary, several factors are keeping them from moving forward.
Nearly half of firms that haven’t started adopting advanced technologies cite the lack of knowledge and limited bandwidth with their existing staff. People with relevant skill sets are in high demand and are often fully utilized for billable client work. The Great Resignation has only made finding new employees more difficult.
If you haven’t started a digital transformation of your accounting firm, consider this: Your clients are already using advanced technologies. They expect you to follow suit.
What is a Digital Transformation?
A digital transformation is reimagining business processes, products and client experiences for the digital age by applying advanced technologies and design thinking.
Digital maturity is more important than ever. Firms that don’t prioritize their technological capabilities are less able to adapt to a changing marketplace and may find their business model outmoded and irrelevant.
Unfortunately, 70 percent of respondents feel they are lagging in this area. They rate their digital maturity as “low” and admit that many processes are still carried out manually. To avoid these traps, take a hard look at what you can automate and how you can better use your customer data. Then lay out a plan to achieve maturity over the next few years.
3 Tips for a Successful Digital Transformation
Executing a digital transformation of your accounting firm is easier said than done. It requires careful planning, buy-in from leadership, a clear vision and skilled professionals to do the work. Here are some tips to help you start strong:
1. Learn as much as possible about your current systems, processes and approaches. Use existing research or commission new market research to answer questions about your target audiences’ needs and buying behaviors. This information is critical to Identifying and prioritizing how digital transformation will advance your business.
This work allows you to identify what advances should be undertaken first. Document your vision and ensure it’s aligned with business goals.
2. Hire a third-party vendor to increase the chances of success. When choosing a vendor, you should consider these criteria: They have the skills to complete the transformation, understand the accounting industry and clearly understand the project scope and goals.
Outsourcing your work costs more. But, hiring tech professionals with accounting experience reduces operational burdens, labor costs and the risk of hiring and training new staff. Our study also confirmed that outsourcing achieved greater success for firms than those that tried to manage the process independently. Getting it right the first time is the most critical selection criteria.
3. Implement your project in phases. Don’t take on more than you can handle—especially in the beginning. Success out of the door sets the stage for more ambitious phases and builds organizational support. Ensure you understand how these phases will work together to achieve your business goals.
Now is the Time
Undergoing a digital transformation can be a daunting task, but it’s necessary to increase profitability and revenue growth.
The slowness of professional service firms in leveraging digital strategies has created a brief window of opportunity to gain an advantage over your competitors. Of course, competition is only part of the equation.
Client expectations are also rapidly changing. Since the onset of the pandemic, most client interactions take place online. It’s crucial to utilize innovative technologies that provide excellent customer experiences. Consider creating automated dashboards or trackers to keep your clients informed and engaged outside personal interactions.
If you don’t, you can bet your competition will be happy to meet your clients’ expectations.
