If you are working in a decision-making position in a financial or accounting services firm, you must have a clear understanding of undergoing dramatic changes. Some of them have progressively emerged for years, whereas the others were exacerbated by the pandemic of COVID 19. The impacts of these changes are hurting firms from all angles and producing an entirely new set of noticeable business challenges.
Throughout the country, it has been observed that baby boomers in senior roles are planning to take retirement and driving consolidation at CPA firms. A leaning battle is in progress to protect the higher-level talent across the marketplace. Hurrying in troublesome technology has evolved the way purchasers buy services. In this highly demanding competitive environment, the capability to forecast emerging challenges can highlight the difference between market leaders and also-rans.
Being a part of its annual high growth study of professional services companies, the survey was done about 1300 professional services firms of different sizes and industries. In this huge sample, we recognized 171 accounting and financial services (A&FS) firms. These companies accounted for more than $100 billion in income and engaged over 160,000 professionals.
Therefore the study has explored different issues; one of the specific interests was the point of views of participants for facing challenges in their companies facing their firm for the next many years. And due to the annual study, we were able to look at these problems that have changed since last year. The outcomes were revealing.
The Top 5 Business Challenges
So now that were these top challenges and how they treat companies looking to remain competitive in today’s demanding and instantly changing marketplace. In this blog, you will come across the leading anticipated challenges from previous user growth studies that have still appeared in the top 5.
Let’s Discuss These Top Noticeable Business Challenges Below:
1. The Requirement For Innovative Skills
The most anticipated business challenge observed for A&FS firms for the year in a row is that we need new skills. According to 47.5% of respondents, the evolution in technology and best business practices bring more substantial pressure on them to meet the requirement of new marketplace standards. As a result, if they are not competent enough and keeping up the level, then does the company need the appropriate people with the correct skillset?
What does it mean by acquiring new skills; two eligible solutions come to mind: the first one is training your current workforce and the other one is to recruit new talent who already has the skills you are looking for. Indeed various companies use the combination of both of these approaches but each one comes with special challenges. On one hand, enhancing the skills of your current staff takes people away from billable work, while on the other hand recruiting specialized talent can be costly. However, to be competitive for the best business, companies must make sure to have the right talent with the appropriate skill set.
2. Automation/Artificial Intelligence (Ai)
This challenge has remained visible from the last few years that are related to automation and artificial intelligence, therefore the challenges may seem to continue. Currently, it is not about keeping up with the instant changing technology. It is about the replacement of technology. If you are looking for a cheaper solution then you can offer a routine compliance service, as it is considered the cost-friendly AI-powered solution.
Most often, normal business challenges in an industry are twice as rich as opportunities and this is the specific case of the A&FS companies. Let’s take an example of firms that leverage the power of marketing automation to have a unique advantage. We can also look at an increasing trend toward packaging technology and professional services combined as new products. It is exactly due to the field as an entire being struggling with technology that utilizing it well can be so successful.
3. Buyer Behavior Changes In Services
42% of respondents said that shifting in buyer behavior is not going to slow down in the future too. And this problem is not specific to accounting and financial services. Companies throughout the professional services range resist the same problem.
A&FS purchasers are growingly shifting to digital channels for the solution to their business-related issues. This trend asks the firms for the continuation of enhancing the maturity of their digital marketing techniques and the tools they use to reach prospects on digital channels. Increased growth A&FS companies have embraced cooperative prospects digitally and look at about 30% more leads from the digital sources than their no-growth matching part.
Do you know the best tactics to make sales? Here it is Best Ways To Create An Effective Sales Process
4. Descending Price Pressure On Services
It is again seen under the top 5 business challenges for the future that is up 6% since the previous year study as per the selection of 41.4% of respondents. When we indulge in the discussion with the top management, it becomes very clear that a variety of factors are driving this problem. Naturally, commoditization of services is easily seen and center. But you cannot consider it as only a force in operation. Enhanced automation and competition also play significant roles.
Focus on making your firm’s high-value expertise more noticeable at the workplace is considered as one of the most successful strategies to Battle price pressure. Keep a look; you may have such talented professionals in your company already: individuals who are broadly recognized in the sector or even beyond for their talents. These popular professionals are known as visible experts, enhancing the perception of your entire brand among both employees and clients and they seem to command greater billing rates as the visibility of their expertise increases.
5. Supervision A Remote Workforce
According to 40% of respondents, one of the top business challenges is managing a remote workforce. And you may not find it surprising! The worldwide COVID-19 pandemic enforced businesses throughout all professional services to enhance their capacity to conduct business virtually. In all professional services firms, this was the second-highest forecasted challenge just behind randomness in the marketplace.
There are different plans for no growth and high growth companies about their plans to use office space with high growth firms being as likely to say goodbye to the office entirely and carry out business full time remotely. This is not a choice for all businesses, specifically those working onsite with the state agencies. But just like digital marketing and business development have evolved the way they attract new customers, it has a corresponding impact on the way we will hire and manage professionals in the future. Great talent is likely to demand a remote, flexible work environment.
At this moment, developing and attracting new clients and providing service is a prime business driver for CPA companies and other financial services businesses. As customer requirements, expectations, and buying behavior change, marketing programs should atomize them. Meanwhile, these marketing programs should concentrate on keeping and attracting exceptional talent and providing them with the appropriate technology to be consistently competitive.
When accounting and financial service providers endeavor to deal with all these challenges, they require the best strategic, incorporated strategies with marketing more than ever and various companies may need expert guidance. The companies that are eligible to create a nimble, cross-purpose marketing machine will be the ones that effectively grow.