Davis serves as CEO of Canopy, the award-winning cloud-based practice management platform servicing accounting professionals.
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There's not a single industry that hasn't experienced dramatic change in 2020, and that very much includes accounting. We count thousands of accounting practices as clients, and thus have had a front-row seat to these changes. Based on what we've seen and heard from our clients, these are the most important trends the accounting industry will experience in 2021.
Clients will increasingly expect accounting and tax professionals to become 'holistic advisers' rather than simply being transactional accountants.
This year has seen a whole host of new processes and policies affecting the industry: SMBs applying for the Paycheck Protection Program, questions swirling on how to keep business afloat and changes in tax regulations and laws. These changes have hastened the shift from exclusively transactional accountant to strategic adviser. Clients are looking for a more holistic approach to tackle these new challenges while streamlining the number of advisors they consult with. This has created a huge opportunity to leverage industry expertise to best advise clients on their immediate needs while expanding to additional services such as advising on their short- and long-term business strategy.
The future accountant is tech-savvy, mobile-friendly and comfortable using mobile platforms to service clients.
This trend has accelerated exponentially as client interactions have gone remote with Covid restrictions. Coupling the pandemic with the new generation of clients who expect mobile solutions, the adoption of mobile accounting technology will likely continue to grow.
Technology will generate a new revenue stream in audit protection services for accounting professionals.
As the IRS continues to automate its process, notices will likely continue to increase. As a result, we will see an increase in accountants who will need to manage the notices process for their clients. This will drive the need for tools that help accountants automate the handling of notices, reducing the manual busywork, and create a new revenue stream by offering audit protection services.
Cloud solutions will become standard.
Technology is at the center of facilitating interaction between a trusted adviser and the client. The consumerization of accounting software is fueling this by creating seamless communication across multiple channels (text messaging, video calls, etc.), allowing for more micro-interactions throughout the year versus once a year.
Practice management will increase in importance, driving market consolidation.
Practice management software will increasingly be viewed as the central system of record for accounting practices. This, in turn, will drive consolidation in the market, as large incumbents acquire younger competitors with modern technology.
Firms will adapt as the future of work changes.
The pandemic has taught us that there is not one singular approach to managing your workforce. Every team member has individual preferences when it comes to being productive at work. While more traditional firms typically worked in person, there is a clear need for organizations to provide employees with transparency and a flexible, customizable work environment in order to retain talent. With the support of the right technology and tools, this is tangible for any firm size.
With such enormous shifts around the world and throughout industries, it will be fascinating to watch the shifts in how accountants do business.
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