Firms must persuade their people and clients to ‘embrace digital change’

In order to manage talent expectations and keep up with emerging digital firms, the accounting industry has had to accelerate its digital transformation.

In fact, research from McKinsey revealed that the crisis accelerated the adoption of technology by several years.

Therefore, as firms continue to evolve, a general level of upskilling and digital literacy is essential.

Changing to a digital mindset

Although effective communication and analytical skills are needed for accountancy professionals, Jeremy Clarke, assistant director of practice at ICAS, says: “There is a lot of change coming down the line, with MTD for instance, so being able to

Whilst the profession was initially slow on the uptake of technology, research from Sage now encouragingly shows that 90% of accountants feel that there is a cultural shift in accountancy that leans toward technological adoption.

Clarke echoes this sentiment of change management philosophy by explaining that the initial fear of adopting technology – and the impact it could have on redundancies – is not as prevalent as it once was. “When MTD for VAT came in, there was a real fear that technology could cause redundancy, but after experiencing it, that it is not the case” he comments.

The industry has overcome the initial resistance by highlighting the benefits that technology can have, with Clarke saying: “People understand that it takes away some of the frustrating tasks and they are able to rely on the technology to do it and do it well, which allows them to move onto more interesting work.”

Clarke continues: “Most people, even if they are partners in firms, have been through a digital change and development because technology has become a more important part of what we do.”

Although the new cohort of junior staff entering the profession may be more adept with using technology, having grown up with it, Clarke stresses that even though the older generation “might not be aficionados, the user interfaces within products these days make the services easy to use.”

“It is not quite a digital skills gap; it is a legacy of how you have come to it,” he adds.

John Toon, senior manager and technology advisory lead at Beever and Struthers, says that a key skill for accountants is curiosity.

“In relation to digital literacy and new software applications, having an awareness and curiosity to learn what pieces of technology are out there, and not dismiss them out of hand as a fad, is essential,” he says.

To create an innovative culture where a firm embraces technology, Toon says partners must create an environment which encourages, not stifles, curiosity.

Toon explains: “This means allowing experimentation and the challenging of established processes without fear of reprisal or failure.”

Being fearless

When it comes to upskilling, there are a multitude of training courses available, but Toon says the best incentive to adopt change is placing the products and services in the hands of the team as “they can be challenged to create a pathway to improvement or promotion using the new skills they learn.”

Clarke reinforces this approach, explaining that quite often when technology has been successfully implemented, it is because the firm has played to people’s strengths and allowed them to take an active role in the implementation process.

“When you introduce any new technology, upskilling within the practice, as opposed to the people at the top, is about demystifying the technology and taking away the fear of it, and very often the best way to do that is to get people to play with it,” says Clarke.

Both Clarke and Toon say that fears around automation and redundancy – which were prevalent many years ago – have slowly faded away as staff realise that technology is there to help, not hinder.

Clarke explains that many of the automation fears have subsided, as staff are able “to do more interesting”.

“Firms are embracing technology, as they can save a lot of time,” he says.

“In the profession, you are never short of things to do, so if you put in the products or technology that reduces the routine work and allows you to concentrate on the more productive, value-added work, then people understand it would be madness not to implement it.”

The right fit

“It’s about your mindset, and your willingness to embrace change more than your age,” says Clarke.

Ultimately, using all the transferable skills that staff and partners have acquired is what holds gravitas for accountancy firms. Communication together with training are the main driving factors in bringing all employees together on the digital transformation journey.

“Everyone reacts differently to change, and it can be difficult, but you must recognise that you can’t [resist] change just because some of your employees don’t like it,” adds Clarke.