In a 2024 that is shaping up to be a rebuilding year for many accounting firms, accounting firms are reporting a 24% increase in revenue over the last 12 months and many of them are expecting their profits to continue growing at a rate of more 20% in the next 12 to 24.
This is reflected in the Thomson Reuters Institute report “State of Accounting Professionals 2024”, created from more than 500 surveys of experts in the area, from studies around the world such as the US, Canada, Australia and Latin American countries such as Argentina.
According to the results, 2024 was a year where organizations had to redesign their business model to take decisive actions that turn them into more resilient and competitive companies. To that end, studios are still adapting to the implications of technology and the gaps in available talent and skills.
In Argentina, despite an uncertain social, political and tax context in recent years, accounting professionals and their organizations have proven to be able to efficiently carry out the tasks in their workflows, diversifying their services and positioning themselves themselves to take advantage of the opportunities that are to come.
Thus, from the perspective presented by the report, we can ask ourselves: What are the main approaches and challenges of this industry in the future?
Efficiency, automation and new technologies
The report indicates that for 32% of respondents, improving efficiency remains one of the most important strategic priorities. Furthermore, when accounting firm leaders in Latin America were asked, 30% of them stated that their highest strategic priority for the next year would be to expand their client portfolio and/or work more for existing ones.
This leads to a modernization and standardization of their processes through automation, especially if we consider that 29% of the participants in the region (mostly studios with 1 to 3 employees), affirm that 70% of the work is done. It runs mostly during tax settlement months.
Furthermore, if we consider that only 28% of accounting firms in the region use AI only as a research tool, rather than as an ally to carry out automatable tasks, it is clear that training and adoption of this alternative is still needed. .
In that sense, the use of the most advanced technology is still a topic of conversation for accounting professionals. According to the report, technological innovation is a double-edged sword, especially because it is a force that not only displaces tax preparation as the core of operations, but also provides greater efficiency, higher profit margins and the ability to offer new services. .
New strategies in talent, alternative prices and customer services
The need to recruit, hire, train and retain highly qualified talent has become a pain point for accounting firms. Small and medium studios suffer the most. For example, for organizations with 4 to 29 employees, recruiting skilled and experienced professionals is the priority for 20% and, in Latin America, for 15% of leaders it is a problem “that keeps them up at night.”
If we think about the reason for this problem, we find that in the region there is enormous diversification of the services of accounting firms, where 80% plan to offer “other services” in the next 12 months, such as ESG consulting, tax strategies, decision making and financial planning, for which they need new and better talents within the organization.
Another key issue that occupies professionals in the sector is the pricing strategy, being the third priority for 23% of those surveyed. For the most part, professionals and organizations still offer hourly charges; However, clients have expressed to them that they prefer more predictability in their pricing, leading to more creative, project-based forms and the elimination of minimum charges.
Regarding customer service, for Latin America, this point and consulting will be the focuses to expand the scope in the next year. For example, 11% of leaders of these organizations in the region say that providing better service is their priority, while 10% are focused on meeting customer demands.
In short, the challenge for professionals in the sector seems clear: adapt their abilities, skills and tools to achieve a level of productivity and competitiveness that allows them to meet the current demands of tax and financial processes, as well as those of their clients. , in an era marked by the pulse of digital transformation.
Vice President of Tax Professionals South LatAm at Thomson Reuters
Source: Ambito
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