I’ve recently spoken with a friend from Australia that offers coaching for accounting firms.
Based on my research I know that AU is quite a bit ahead of everyone else (US included) when it comes to building modern firms. I asked him just how far behind he thought the US was. His response was as follows:
The US is about 7 years behind AU when it comes to running an effective accounting practice.
I then asked him what the biggest differences were between firms in AU vs firms in the US?
Firms in AU have converted away from hourly billing to adopt value pricing. They’ve eliminated paper and have converted operations to cloud technology. Their operations are running significantly more efficiently than firms in the US.
Much of this I knew, but I couldn’t help but wonder why the US was so far behind, here’s what he had to say.
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Education. He and a few others have been educating their entire country on the merits of making these improvements for decades at this point. For various reasons, the US hasn’t had the same opportunities. The US still focused on charging for their time, working crazy hours and has not made proper investments in automation and technology like they have in AU.
The experience in AU is generally much improved (when compared with the US) for both accounting firms AND their clients for all of these reasons and more.
I think it’s time for firms in the US to follow suit and take advantage of these benefits as well.
PS. Read more about my friend Rob Nixon on his website here. I’ll be having him on my podcast in June so stay tuned for that episode.