The accounting world is changing. Forecasting software is improving efficiency and productivity at firms, while accountants are able to use the cloud to communicate with their clients to create a collaborative environment. Client accounting services were a pain point for many accountants, but now with the use of digital technology, CPA firms are taking on many new clients. A report written by Geoffrey Moore, tech consultant and bestselling author of "Crossing the Chasm," outlined just what accounting firms need to focus on as they prepare their businesses for the cloud, and other innovations that are designed to help them make it easier to meet the needs of clients.

"Our fundamental premise is that, in the past, major barriers to productivity made (client) accounting services a low-margin activity that was unattractive to pursue," Moore wrote. "In today's online digital era, we believe these barriers can be removed, and the practice can be reengineered into a high-growth, high-profitability line of business."

Major changes occurring in the profession 
The cloud has been a lightning rod for many CPA firms, causing them to involve themselves in more client accounting services relationships than they had in the past. In his report, Moore outlined the three changes he believes will shape the accounting profession for years to come, with some being so drastic that it could cause some companies to completely alter their operations.

1. Begin the shift to web-based solutions: The amount of financial reporting and business budgeting software that is now available gives CPA firms plenty of options when they are selecting which solutions will be the future of their companies. Purchasing software that is managed in the cloud will give accountants the ability to work from anywhere with an internet connection, as well as communicate with their clients while working on their books.

2. Create a digital presence for the firm: Not only will a virtual existence allow more prospects to learn about the company, it will also foster improved lines of communication with clients and potential customers that want to reach out to the firm. A company website should include contact information for the business, as well as the services it provides.

3. Be able to provide insights to smaller businesses: In the past, CPAs are hired to help companies and clients manage their finances, but now they are being called upon to deliver actionable insights that can help firms flourish within their niche markets. 

Managing finances and conducting accounting in the cloud makes sense
Many small to midsize companies can't afford integrated accounting solutions that can automate processes and help them maximize their budgets. However, they may be wise to trust in a CPA firm that has moved its processes to the cloud and has a digital presence, according to Accounting Today.

The speed of today's business world is requiring business owners to always be ready for the next move, and partnering with an accounting firm that manages its software in the cloud could help them learn the insights that can improve their decision making. The website discussed how software that enables businesses to automate aspects of their accounting can experience an environment where some processes – such as billing, inventory management, sales management, customer relationship management, delivery, record keeping and collections – are taken care of automatically. 

As Moore pointed out in his report, "the key to capitalizing on this new set of opportunities is to free up professional time to devote to such analytics, to use that time to determine the key performance indicators for your client's business, and to work with the business intelligence software to develop simple dashboards that make performance factors readily visible." Investigate areas of your business where software and other solutions could facilitate increased efficiency.