Trends In Australian Public Practice Accounting Firms

Accounting firms are facing an increasingly complex regulatory environment as well as a more demanding marketplace which is creating a requirement for specialisation. Accounting firms also have to contend with a very tough labour market where it is not easy to source highly skilled accountants. This problem is largely the result of globalization, economic factors and shifting demographics. As a result, some accounting firms will be challenged while others will thrive and find new opportunities.

Some of the big issues that have now become relevant for the Australian public practice accounting firm are –

• Paperless office

• Documented, controlled workflows

• Mobile workforces and geographically dispersed workforces including outsourced accounting services

• Flexible workplace where families are supported with 9 to 3 work times for working mums

• Centralised, structured information sources

Firms will continue to pursue growth by using strategies to recruit / retain talent, outsource non core functions and basic accounting processing, leveraging and building knowledge and building operational efficiencies. Specialization is being pursued alongside marketing strategies that allow practices to penetrate specific market places. For example, an accounting practice may build up a specialised knowledge of pharmacies and then join pharmacy groups.

Paperless workflows are increasingly being viewed as an opportunity to become more competitive, create efficiencies and improve client service. Accounting firms are storing documents electronically, scanning source documents and reviewing tax returns and working papers on computer monitors.

In today’s environment, where the demand for client services is high and the need for value-added, specialized and geographically expanded services is growing, knowledge and the knowledge worker are at the centre of a firm’s success.

It has been the threat of the loss of baby boomers from the public practice accounting service industry that has really created the focus on knowledge management but that is just one issue that faces firms as they grapple with managing and implementing full blown knowledge management systems. Firms are being forced to consider the specialised needs of their clients even as the demand for specialists grow and supply shrinks. Clients may want services that cross geographical space & time. Generational issues also need to be considered where younger workers are hungry for networking opportunities and want to leverage themselves off the latest in social media connectivity. Firms that implement knowledge management systems report improved efficiencies, lower error rates and higher productivity.

The recession might be in full swing but the public accounting profession is still under considerable resource constraints due to high demand for services together with the large number of baby boomers retiring or individuals leaving public accounting to pursue other career and life choices. As a result of these resource constraints, firms are increasingly adopting novel approaches to deal with the issue including outsourcing, hiring part time workers including 9-5 mums and utilising the resources of administrators in the place of accountants where possible.

As with other professional knowledge workers, public practice accountants are increasingly more likely to work independently of set hours and specific places. Modern technology is such that ‘roaming profiles’ for both the desktop and audio visual devices make a modern knowledge worker independent of even specific devices such as personal laptops.