The Top Three Trends Shaping Accounting
Paul identifies three main trends that will continue to shape accounting practices this year:
- Virtualization – The ongoing shift toward virtual operations and services.
- Time Management – Accountants increasingly recognize the need for efficient time allocation.
- Specialization – Firms are narrowing their focus, staying within their “swim lanes” to deliver higher-quality services.
Trend #1: Virtualization
Virtual work has moved from novelty to necessity. Paul emphasizes that virtual services are no longer optional for firms that want to remain relevant. From virtual client meetings to leveraging a Virtual Family Office, firms can operate more efficiently and broaden their services without geographical limitations.
- Virtual Family Office – A remote network of experts enables firms to offer comprehensive services without a physical team.
- Increased Client Convenience – Clients prefer the convenience of virtual meetings, making it easier to schedule regular check-ins.
Trend #2: Time Management and Efficiency
The theme of “not enough time” has become even more prominent as firms grapple with growing demands. Accountants are exploring ways to make time for proactive, high-value services by outsourcing, selling off non-priority clients, or bundling services.
- Client Segmentation – Firms are segmenting clients by value, focusing on A and B clients for advisory services, while transitioning C and D clients to junior staff or selling them off.
- Outsourcing Non-Essential Work – Firms are outsourcing tasks like marketing or basic compliance work, freeing up time for more complex client needs.
Trend #3: Specialization
To manage time effectively, more accountants are staying within their areas of expertise or “swim lanes.” By specializing, firms can deliver higher-quality services and improve efficiency.
- Virtual CFO Services – Many firms are shifting to specialize in virtual CFO services, providing strategic financial oversight for clients.
- Bundled Service Tiers – Firms are creating service tiers (e.g., Tier 1, Tier 2, Tier 3) to package services efficiently. Higher tiers include access to proactive advisory teams, allowing firms to offer comprehensive support without diluting their expertise.
Combining Trends for Strategic Growth
These three trends—virtualization, time management, and specialization—complement each other, enabling firms to improve client relationships while optimizing internal processes. By integrating these elements, accounting firms can focus on becoming relevant advisors who offer proactive insights.
Making Incremental Changes
Paul advises that 2022 is a year for incremental changes, not sweeping transformations. Firms should focus on refining existing strategies, like virtual work and service tiering, to better serve clients. Small, targeted adjustments can lead to significant improvements in client service and operational efficiency.
