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In the changing world of accounting, being a digital firm involves more than just technology. Here we look at the ten elements of a digital firm.

1. Client experience

Client experience is at the heart of digital firm transformation. With marketing disruption and low-cost alternatives around us, simply providing good customer service is no longer enough. If you want to sell at a premium you need to have a USP (unique selling point) to justify the premium price.

2. Strategy

For the other nine elements to be successful, we rely on strategy, a crucial element of digital firms. What are the missions, objectives and values of your firm? You need to understand these to figure out the how.

3. Internal technology

We need to decide on the technology that will drive and underpin our own firms. What systems and processes currently exist and how can you use technology to improve them?

4. Client technology

As well as the technology used internally, it is essential to use the right technology to improve efficiency for the client experience too. Cloud accounting and machine learning are examples of technologies for digital firms.

5. Process

Firms need to lead processes, and not continue to let the clients do so. When you own your processes, you can control the data quality and the profitability. Processes need to be developed around everything. This does not just include the core service delivery but also the organisation of customer touch points, from the very first client interaction.

6. Marketing

As accountants, we're notoriously poor marketers. But to successfully market your services, you first need to have the right brand. It should reflect the set of values that reinforces the culture and attitude of a firm.

7. Pricing

It is necessary for a digital firm to adopt fixed fee pricing as this helps you to create processes around your billing and cash collection. Charging per hour will not motivate you to automate jobs and complete tasks quicker and clients care more about what they get from a service rather than how long you worked for it.

8. Advisory

To become the accountants of the future, you need to make the shift to advisory. To provide excellent advisory services, a digital firm needs to have the right technology, processes and people. Once you use technology to control the data quality, you can start having meaningful communications with your clients.

9. People

A significant challenge we have today in the world of accounting is recruitment. You need to select the right people to work at the right level with the technology in digital firms. There is no longer the need for accountants to spend as much of their time on bookkeeping tasks, raising questions of whether they need to be doing all the work they do now. So, who should you be hiring to support your digital agenda? And how do you make sure you attract, recruit and retain the right people?

10. Culture

Charles Handy defines culture as "the way we do things around here". It is an essential part of the digital firm as it influences the brand proposition, which is a necessity to successful marketing both the client experience and the people you hire.

To make sure your digital firm performs, you need to consider each of the ten elements and how they work together. The starting point is the strategy, with client experience at the centre. Once you know the objective, you will be able to develop the other areas.

  1. P a h R
    Posted 30-Jul-2020 at
    Some conflict between optimising the client experience and not letting the client lead the process. Jedi mind game will help with this.
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  2. Fotios S
    Posted 22-Jul-2020 at
    A digital firm requires constant evaluation of its environment (micro and macro) due to the fast-paced technologies by which it is affected. management should constantly focus in the strategic fit and be able to anticipate threats and opportunities well before they occur.
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  3. Emma C
    Posted 20-Jul-2020 at
    The missions, objectives and values of your firm supported by the right people to achieve your USP.
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  4. Andrew B
    Posted 12-Jul-2020 at
    There is so much competition, for a business to survive, you need a point of difference, all element apply.
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  5. Ayana A
    Posted 09-Jul-2020 at
    I strongly agree with Jeremy Swinfen Green that Digital transformation and technology for a Firm need to be lead from the top. Digital technology influences every corner of an organisation and therefore it need to be lead from the top from the people who have a holistic perspective of the organisation and who can see how the different parts fit tog ...
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  6. Oi lin irene Y
    Posted 08-Jul-2020 at
    "If you want to sell at a premium you need to have a USP (unique selling point) to justify the premium price." is correct. Nowadays "If you want to sell at a premium price you need to sell it in online store as quick as you can, otherwises the prices would be lower and lower when more goods are available on sales." always happens.
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  7. Ged H
    Posted 06-Jul-2020 at
    Digitisation of the firm will allow for improved flexibility, productivity and profitability in a rapidly changing world where old methods and practices are no longer viable.
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  8. Eva F
    Posted 04-Jul-2020 at
    Digital transformation has to come from the top and therefore strategy is a key element of it.
    1
  9. Shing yip N
    Posted 04-Jul-2020 at
    Improvement of accounting work flow
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  10. Pankajkumar ghanshyambhai B
    Posted 01-Jul-2020 at
    Customer satisfaction is most important and that again is dependant on getting an useful advisory at an affordable Price. This is possible though using the digital tools that we are empowered with. The extra fees can be justified by showing the customer, improvements in his performance using the advisory.
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