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Charting a Course for the Future

For today’s firm, change is constant. The ever-evolving realities of the profession inspired Wolters Kluwer to explore two major questions in our 2014 Accounting Firm Preparedness Survey.

1. What trends will have the most significant impact on accounting firms and their clients over the next five years?

2. How well prepared are accountants to take advantage of these trends?

The responses were telling. Fewer than 1 in 5 survey participants (18%) report feeling “very prepared” to take advantage of the profession’s most significant trends. What are these firms doing that others aren’t?

18%Very Prepared

Very Prepared FirmsThese firms report feeling very well-equipped to shoulder a future filled with changes in people, processes and technology.

The Very Prepared vs. the Less PreparedThese two groups are largely similar except for their attitudes towards technology.

FIRM SIZE — Number of Employees

Very Prepared Less Prepared

69% <50

71% <50

29% 50+

YEARS IN THE PROFESSION

Very Prepared

43% <10 Years

57% 10+ Years

Less Prepared

43% <10 Years

57% 10+ Years

FIRM SERVICES

Less Prepared

Indi

vidu

al R

etur

ns

86%N

on-I

ndiv

idua

l Ret

urns

77%

Cons

ultin

g Se

rvic

es

68%

Very Prepared

Indi

vidu

al R

etur

ns

82%

Non

-Ind

ivid

ual R

etur

ns

80%

Cons

ultin

g Se

rvic

es

69%

Fina

ncia

l Aud

its

79%Fi

nanc

ial A

udits

78%

ATTITUDE TOWARDS TECHNOLOGY — Technology is having a very significant impact on my firm

Less PreparedVery Prepared

On average 69% On average 37%

Getting Results from TechnologySPEED OF INVOICING

from initial client engagement

From the onset of a client engagement, “Very Prepared” firms are able to put cash in the bank 10 days faster than “Less Prepared” firms.

Very Prepared

14DAYS

Less Prepared

DOES YOUR FIRM HELP CLIENTS TAKE ADVANTAGE OF THESE TRENDS?

GROWTH OBJECTIVES — Growth of 6% or more over the next 3 years

“Very Prepared” firms make a concentrated effort to think ahead, anticipate future needs and use technology to be more productive and profitable.

Technology will definitely have a major impact on:

Benefits achieved/expected from the mobile solutions:

Technology integration will definitely have a major impact on:

Very Prepared

51%

Less Prepared

44%

87%

38%Information

Security

“Very Prepared” firms are better equipped to understand and anticipate client needs and help their clients manage critical business issues.

36%

Increasing Regulatory

Complexity

84%

34%

Digital Mobility

Demands

77%

Very Prepared Less Prepared

TREND NUMBER

1

TREND NUMBER

5

TREND NUMBER

2Increased Focus on Client Service

Social Media as a Business Tool

Technology Integration Challenges

Very Prepared Less Prepared

Very Prepared Less Prepared

76%

38%Client retention

58%

55%

Improve client service

Improve productivity

Improve work/life balance

Communication and collaboration 37%

63%

Leverage greater use of staff

Reduce real estate requirements

27%

37%

40%

Accessing, analyzing and applying

3rd party information

Achieving competitive advantage

Using client-provided information and data

Winning new clients

76%

37%

Work more at client sites

Attract and retain employees

49%

48%

Supporting firm’s growth and profitability

Managing workflow and increasing productivity

76%

38%

72%

39%

70%

39%

73%

37%

67%

36%

63%

33%

69%

37%

Providing more strategic service

41%

40%

Expand locations served

Increase billable time

Creating work products for clients

“Very Prepared” firms are more likely to be ready to take advantage of talent management and staff succession planning in the future.

TREND NUMBER

3Digital Mobility Opportunities

TREND NUMBER

4Talent Management & Succession Planning

Very Prepared

70%

Less Prepared

30%

Very Prepared Firms

Among “Very Prepared” firms, 69% have already implemented social media as a business tool, and 28% plan to implement it in the near future.

Less Prepared Firms

Among “Less Prepared” firms, 55% have already implemented social media as a business tool, and 34% plan to implement it in the near future.

Overall

Only 10% of all firms stated they have no plans to use social media for client service, collaboration or communication.

31% 50+