What Will It Take? Part 1

There is a radical change coming to our profession, whether we like it or not. How will we adapt?

In order to correct an issue, you must first recognize that there is an issue. This is the first step in any recovery process. The recognition that we are working in a manner that is detrimental to the long-term health of our profession is beginning to occur. Our profit margins are declining and our new business growth is slowing. These are the signals that business as usual will not keep us going for long. Our profession is evolving and the firms that recognize this will have the opportunity to be successful in the future.

The first step in this process will be the stepping aside of the established leadership to make way for the changes in structure and process that will be necessary to adapt. While utilization of new technology will be important to making this transformation, it will not be all that is required. It will take a complete evaluation and restructuring of processes and procedures to even begin this journey.

Pre-Evolved

Current operating practices of most accounting firms are analogous to the hunter / gatherer practices of the Bushmen of southern Africa in that the practitioner must stalk (marketing), kill (close the deal / sales), clean / cook (process information), and eat (billing/collections) their prey (client). In many cases (no matter the number of employees of the firm) these functions are performed entirely by one individual per client. There is almost no segregation of duties. This seems rather pre-evolved to me.

In an age of instant communication and incredible computing power, how can it be that a group of entirely information based businesses (the accounting profession) are so inefficient and pre-modern? What will it take to bring this profession into the modern age?