Technology can beat fee compression
Accounting firms aligned to Count Financial have been urged to embrace technology as a means of developing new revenue opportunities including in wealth management in the face of fee compression in traditional service areas.
An analysis published on the Count Financial website acknowledged that technology had made it easier for many clients to take a do it yourself approach to their accounts, particularly when it comes to basic tasks such as tax returns.
It said the result for the accounting profession had been "fee compression in the face of growing competition".
However, it said that as well as threats there were also opportunities for accountants in the new technology.
"Accountants willing to develop a more holistic relationship with their clients and broaden their service offering will find there is a real opportunity to ensure that clients not only rely on them for bookkeeping but also advice and consultancy (including wealth advice)," the Count Financial analysis said.
"Technology can be an advantage rather than a hindrance when it comes to diversifying your offering by allowing you to break down barriers and provide clients with more targeted advice. By doing so and providing holistic relationships you can stay relevant and competitive."
The analysis suggested that as individuals and businesses increasingly used online channels for transacting and communicating, technology could be used to collect rich information at an increasingly granular level.
"Cleverly used, this information can both improve client relationships and expand or enhance your services in line with genuine client needs," it said.
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