You run to the corner store to pick up some milk. At the register, you pay with A.) Debit card; B.) Credit card; C.) Cash; D.) Check. How did you answer that question? I'll bet that most people responded with A or B. There could even be a couple that answered with C.
But D? When was the last time you saw someone pay with a check at a grocery store? In the last year, I can count the times on my finger – two. Each time I remember because I thought (as I watched the individual slowly write out the check and the cashier verify their ID), "Who still pays with a check?"
Businesses do. When it comes to payment, checks are still the main form of currency for businesses. As a practitioner, you probably see this happening firsthand or are involved in the process on some level. You can also see the drawbacks—the time it takes to write, sign, mail and reconcile them and the risk/fraud involved. And yet many businesses still embrace paper checks.
The consumer world is embracing mobile wallets and electronic payments. The business world is still holding on to the time-consuming process of writing and mailing checks. Based on what I'm seeing, the tight grip businesses have had on paper checks is starting to loosen up.
Today's consumer trends point to where your business leaders are heading. Trends like paying online or mobile wallets are bleeding into the business world. While checks may have been the payment mainstay for decades, business owners are starting to question their use. If an individual can swipe a card or pay online for items, why can't that same payment efficiency apply for his or her business?
This trend is forcing a fundamental change in how accounting professionals operate. The emphasis is swiftly moving away from centralized, paper-driven hubs of service to decentralized, collaborative and online-focused operations.
Beyond payments, there are many other consumer trends affecting the accounting profession. Here is some advice on how you can prepare your practice for the future.
Reinforce with the Right Technology
Today's consumer wants immediate responses and results. But if you're away from your office, can you easily respond to their queries?
The days of working only at the office have expired. You have to be able to access important documents and information on the go. Is your smartphone business-ready with the latest apps to support clients? There's a multitude of new app options that allow you to respond to and support clients quickly – regardless of where you are. With new smart watches coming onto the scene, there's going to be even more mobility options available to serve and connect with clients.
Adopt the Cloud
Doubtless, you've heard of the cloud. In fact, it's hard to read about accounting technology without getting slapped in the face repeatedly with the term.
There's a reason for that.
Along with the right hardware like smartphones and tablets, cloud-based services bring your firm an elevated level of access and functionality that position it to stay ahead of consumer trends. It cuts the need to be in the office to help your clients. Equally as important, most cloud-based services offer an unprecedented level of collaboration. It's easy to share files, notes and messages. All are consolidated into one space and easily accessible to both you and your client. This element of collaboration is very important not only to today's consumers, but the next generation as well.
The cloud, when compared to on-site software and IT maintenance, offers a cost-conscious option that allows you to allocate money to growing your client base, staff and other resources. The cloud lets you move away from paper and paper-based workflows. That means, with the right service, you can jettison paper invoices, checks and contracts and the headaches they incur. And best of all the cloud, automatically backs up your data and prepares you for that disaster no one wants to think about.
See the Big Picture
Consumers, much like business owners, are looking for the big picture. They don't want to only track how many miles they jogged. They want to compile all their fitness information – calories consumed, water intake, sleep patterns, heart rate and more – so they can get the big picture on their overall health and performance.
Business owners are expecting the same experience when it comes to their financial health. They want to know much more than when their taxes are due and how much they have to pay. They want an overview of their financial performance and cash flow. They want strategic advice on how to evolve.
Integrating and syncing all your accounting software and services can help you compile and examine information to offer a big picture view. For example, while one piece of accounting software may focus only on expense reports, there could be two or three others that handle bill payments, bookkeeping or taxes. Ensuring that these programs all sync data and are talking to each other automatically gives you accurate information to provide a big picture overview.
Conclusion
Many accounting professionals tell me they don't see a reason why they should change their practice. They say things are going great today. They don't realize their business clients are also consumers. The consumer world is rapidly evolving with giant strides in payments, mobility and data consolidation and management.
Soon, businesses will expect the same advances in their day-to-day practices. In order to preserve a healthy, growing firm, accounting professionals need to stay current with the latest consumer trends. Your business clients will soon demand the conveniences that they see on a regular basis in their personal lives. If you don't offer them, then they will move to another practice that can provide them. And you and I don't want that.
