Survey finds that accounting firms embracing innovation, technology and cloud solutions will thrive
Wolters Kluwer, a global leader in professional information, software solutions, and services, has released the results of its 2023-24 Wolters Kluwer Accounting Industry Survey for the Asia Pacific (APAC) region -“Accounting Evolution Report: Unlocking Revenue Opportunities with New Technology.” The survey reveals that the accounting industry continues to undergo a significant shift, driven by changing economic conditions and rapid advancements in technology. The report also sheds light on the challenges faced by firms across the Asia-Pacific region and embarks on an exploration of how technology can be used to foster engagement, improve work-life balance, and drive revenue growth.
More than 600 firms across Australia and New Zealand (ANZ) and the South East Asia (SEA) region participated in the survey, conducted by Wolters Kluwer Tax & Accounting (TAA) Asia Pacific APAC. The top three strategic goals of all firms across the APAC regions surveyed are: revenue growth, improving workflow standardizing processes and improving employee effectiveness.
Survey highlights include:
- Almost 70 percent of those firms who consider themselves to be innovators and digital leaders are now on the cloud for all solutions, compared with only 41 percent of those firms who consider themselves to be mainstream or conservative in their adoption of technology.
- 80 percent of firms expecting low or no financial growth in the 2024 financial year consider themselves to be mainstream or lagging in technology uptake.
- 51 percent of ANZ firms and 59 percent of SEA firms look to advancements in technology to protect sensitive data; however, 74 percent of SEA firms and 79 percent of ANZ firms are still sharing information with clients via email with attached links, resulting in significant vulnerability for firms who are already at heightened risk of cyber-attack.
- 77 percent of firms report an increased demand for advisory services over the last 12 - 24 months; this compares to last year’s findings, where only 40 percent of respondents saw this level of increased demand.
- 65 percent of firms that expect high financial growth are relying on technology to help attract and retain clients and increase service offerings.
Izzy Silva, Wolters Kluwer Tax and Accounting APAC Managing Director, said: “The 2023 Accounting Industry Survey results reinforce that the adoption of technology and cloud-based solutions that improve workflows and employee effectiveness will continue to be key for accounting firms seeking to achieve their strategic goals. While sustainable revenue growth remains key for firms across the region, finding solutions that create the capacity to enable this growth is critical.”
Survey says innovative firms continue to lead the way
The survey also found that firms expecting high financial growth this year fully embrace the cloud, with 73 percent already using cloud-based solutions for all their needs, compared to 54 percent of all surveyed. Embracing technology and staying ahead of the curve will be vital for firms aiming to maintain a competitive edge.
While innovative firms are experiencing positive benefits from their adoption of cloud solutions, there are still further efficiencies to be gained. Rakesh Naidu, Wolters Kluwer Tax and Accounting APAC Head of Product, said:
“By embracing tools early on and finding innovative ways to leverage their capabilities, firms can create exceptional value for their clients. Across Asia Pacific, Wolters Kluwer inspires productivity, innovation and collaboration through CCH iFirm solutions, as well as leading knowledge solutions such as CCH iKnow.”
About the 2023 Wolters Kluwer Accounting Industry Survey
The 2023 Wolters Kluwer Accounting Industry Survey was conducted across the ANZ and SEA regions in May 2023. The survey had over 600 respondents - both customers and non-customers of Wolters Kluwer’s software.
100% of respondents were Public Practice firms, with more than 94% providing tax and compliance services and more than 76% providing business advisory services to individuals and businesses across the region. Results were assessed on the basis of all data and then segmented into ANZ firms, (firms within the Australia and New Zealand Region) and SEA firms, (firms within the South East Asia region - predominantly Malaysia and Singapore). Results of firms anticipating high revenue growth were also analysed, juxtaposed with firms expecting low or no financial growth. Finally, digital leaders (pioneers and early adopters of technology) were also analysed, relative to late adopters and mainstream adopters of technology.
