You shouldn’t wait to implement technology, and this is why.
If you are sitting on a potential new system for your business or waiting for ‘things to quieten down’ before implementing that new piece of technology, I’m willing to bet you will regret it later. But not for the reasons that you might think.
Unique challenges emerge the larger and older any business gets. And these challenges take considerable time to rectify. Many of them can be solved through technology and processes, and many can be foreseen. The sooner technology is implemented, the sooner you’ll see results.
This discovery is one of nine key insights I identified in Karbon’s recent report, The Business Ability of Accounting Firms, which reveals the core weaknesses and progress of 250 accounting firms across the globe that were assessed through our Practice Excellence Scorecard.
In our study, participating accounting firms were assessed across 12 competencies that were identified as being critical to the long-term success of a business.
Breaking down the average results across these 12 competencies based on the size of the accounting firm shows that generally, they become more proficient as they grow larger. However, there are two exceptions. In the areas of technology and innovation, the skills of these accounting firms actually grow progressively weaker.
Looking at firms based on their tenure—how long they have existed as a business—paints a similar picture. As they mature, firms generally become more in most areas. But once again, the clear exceptions are technology and innovation. As a general rule, the older an accounting firm, the less likely it will excel in these areas.
What does this show us? The findings back up what many assume, but may dedicate a lot of thought into preparing for. That as a business grows larger or matures, it only gets harder to make changes. This change might be implementing a new system, innovating a common day-to-day process, or even something more major like merging with that other firm.
Whatever it is, if you are confident it is the right decision in the long-term, stop dragging your heels. Make the change now. Put up with a bit of short-term pain, but know that you will reap the rewards in the future.
Download your copy of The Business Ability of Accounting Firms for all the insights from Karbon’s Practice Excellence Scorecard. You can also take the free Practice Excellence Assessment to receive your own personalized scorecard and see how your firm compares.
