The 2016 Outlook looks bright for the Australian Accounting Profession despite client fee resistance/sensitivity being one of the top three challenges identified by the profession. Participants of the recent GBU Insight Poll believe the next 12 months will continue to deliver more of the same success.
A majority (51%) believe the outlook for the overall state of the Australian accounting profession will be the same as last financial year. But more than one-third (35%) believe the future is even brighter predicting results to be better than the last financial year. Therefore, just 14% surveyed believe the profession is in decline and will be worse than the past 12 months. Interestingly, these firms are still predicting a 5.8% average revenue increase in the next 12 months.
Changes in technology (41%) has been rated as having the largest impact on the Australian accounting profession during the next financial year. These results are similar to the 2014 Good Bad Ugly Report when ‘the economy’ was a clear second behind ‘changes in technology”. Interestingly, ‘regulatory changes’ have doubled to 15% of participants suggesting this will have a larger impact compared to ‘outsourcing of work’ which has fallen significantly.
As part of our Good Bad Ugly Survey and Insight Polls, we also seek to understand what the accounting profession considers are its major challenges for the coming year. As providers to the profession, it is important for us to understand this so that we can offer awareness and assistance where possible.
As a part of the profession itself, it is important for you to also understand this – for these challenges often present key opportunities for improvement and competitive advantage. It’s one thing to be able to identify the areas in which you are being challenged, it’s another to identify opportunities and plan the necessary action in order to address these issues.
The results of the recent Good Bad Ugly Insight Poll – Outlook for 2016 reveal that, for the first time in seven years ‘growth’ is no longer the number one challenge. The biggest challenge for the profession, as rated by accounting firms is ‘efficiency of your firm’s processes’. The last time ‘growth’ rated out of the top three challenges was in 2008 during the global financial crisis.
What will your firm invest in or do differently in the next 12 months to improve the efficiency of your processes? Get a head start on the 2016 year by downloading the latest GBU Insights report at www.businessfitness.net/gbu.
Look out for the 2015 Good Bad Ugly Survey – the industry’s leading benchmarking report will be live next week. By participating in this year’s survey, your firm will receive the complete data tables of Australian accounting firms key performance indicators (these will not be available for purchase) – discover exactly where your firm stands. To register your interest in the 2015 GBU Survey please send your details to firstname.lastname@example.org.