The traditional focus on recurring work and the associated recurring fees is likely to change in the near future.
There are an increasing number of alternative, low cost and professional alternative service providers. Those clients who perceive that all their accountants do is produce accounts and tax returns will be at risk. At the moment there is just a trickle of a move to online, cloud solutions and DIY compliance. This trickle will increase starting at the lower end but across the board as everyone looks to get more value (for which read ‘advice’) from their accountant.
Accountants who provide traditional tax return completion services and simple accounts preparation services are most at risk. Plenty of commentators have been saying this for a few years. I’ve long been of the view that the move to newer style service providers will not happen overnight. But it will happen.
Accountants who are losing more than a trickle of clients would be well advised to check out what the competition is promising and doing to win work away from them. Then comes the hard question. How will you respond?