3 Challenges That Accounting Practices Face Today

The accounting industry is no stranger to both internal and external challenges. With constant changes to the tax system, reforms, and new regulatory requirements popping up with each government, accountancy practices must adapt or fail.

Instead of allowing industry issues and challenges to take their toll on your accounting practice,   proper education for the workforce is key. Here are a few issues that you should prepare to conquer:

Difficulty with staying on top of tax changes

Perhaps the central challenge of accountancy is keeping up with changes to the tax code. Governments routinely make changes to tax policy, whether it is to raise more revenue, bear down on late tax payments or tax avoidance and evasion, or to improve the efficiency of the system, updates are a fact of life for anyone working in the tax space.

Regardless of whether every successive tax change is meant to stimulate the economy, increase government revenue, or benefit taxpayers, the constant evolution inevitably adds pressure to any practice’s workload. Failing to stay up to date with the changes can have costly repercussions in the form of fines, missed opportunities, and fraud charges.

While the constant changes in tax policy and the taxation function of the government are unavoidable, the best way businesses can stay on top of these changes is to stay updated at all times. A highly knowledgeable, plugged-in and proactive practice will mean happier clients and a better reputation.

The struggle to deliver on a deadline with high-quality work

Accounting practices face the overwhelming responsibility of upholding timely client service deliveries. In an age wherein customer satisfaction is more of a requirement than a gold standard, the pressure continues to increase. However, it can rob accounting practices of much-needed downtime, effectively increasing the risk of burnout, higher turnover rates, and dwindling work quality.

Without a client service focus, however, your accounting practice won’t be able to stay in business for long. Word travels fast nowadays, and customer relations are at the heart of top-notch accounting services.

Now, you might be wondering: “Is it possible to deliver high-quality accounting work without overworking yourself?” There may be multiple ways to answer this question, but outsourcing work from other practices can be the most practical way to keep things running smoothly (even if there’s a profit split).

Getting long-time clients to accept new technology

We’ve all experienced dealing with a client who doesn’t agree with having newer bits of accounting technology added to their financial operations because it “breaks tradition.” With technology evolving at a rapid pace, however, it can be especially frustrating to deal with an innovation-resistant client.

A nurturing approach, however, is the best way to bring up the idea of getting on board with new technology. Employing this approach means easing the benefits of applying new technology, essentially showing how it can benefit your client in the long run. It’s about making it an irresistible offer that’s bound to get them in on innovation.

Final words

The challenges of today’s accounting industry can get the best of any accounting practice that’s striving to make a name in the field. By staying on top of every challenge and taking the right approach to solving them, you can guarantee your practice’s long-term growth and put it a few steps ahead of the competition.

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