Digital tools, automation and AI solutions are transforming the accountancy profession and the services firms offer to clients. Smaller practices are investing in digital innovation but face a wide range of challenges, both in their own digital journey and in adding value for their clients by integrating technology into their service offerings.

The clients of SMPs may be at very different stages in their digital journey, ranging from entrepreneurs who are steeped in technology to businesses that are barely out of the starting blocks. How can SMPs make sure that they can meeting the demands of both ends of the client spectrum? Where is the best place to start implementing digital tools? And what are the challenges that SMPs can expect to meet along the way?

Digital opportunities

There is no doubt that digital innovation is a significant opportunity for smaller practices. Digital tools can streamline and enhance existing client processes, but the opportunities go far beyond more efficient compliance-based services. Client businesses may be going through their own digital transformation or could see real benefits from digitisation – and SMPs are in a perfect position to act as digital advisers.

The primary advice from the panel is to focus on your own practice first. Make sure you are using digital tools to the best advantage within your own practice to increase efficiency and improve the client experience – and use that experience to guide clients. 

Making a start

In order to choose the right tech solution for your practice, you need to be aware of what’s available. Staying up to date with the latest innovations can be a full-time job – but one that falls to the owner-manager of SMPs. 

The panel – who all run their own practice – use a variety of sources to make sure they stay up to date with developments, including:

• Technology podcasts
• Learning from the experience of peers in other practices, and from clients
• Regular team meetings to discuss their experiences of using and testing digital tools
• Online accountancy and technology publications
• Social media discussion groups for accountants and small practices
• ACCA resources for SMPs
• Software vendors.

Choosing the right tech

With such a huge range of digital tools and systems available, how can you be sure that you are choosing the right option? The answer is to begin at the end: what are the problems that you want to solve?

• Drown out the noise. Take a dispassionate look at the practice’s operations and focus on the areas that need improvement and enhancement – and then look for tools that might help. 
• Start small and scale up. Digital tools that have made a real difference for SMPs include AI-based meeting transcription tools, project/task management platforms, and cloud-based document-sharing.
• Test thoroughly. Some tools simply will not suit a practice and they only way to really discover that is by testing it. If it doesn’t work for the practice, move on and try something else.
• Take your time. Many tools take a while to tailor to a practice’s needs. Make sure they are appropriate for the practice and staff are completely comfortable with them before rolling out to clients. 

Transformation challenges

Digital transformation is rarely a smooth process. The panel discuss the most common challenges that could occur along the way: 

• Internal resistance. There is anxiety that digital tools, and AI in particular, will replace jobs. Take a people-first approach with staff – explain why you want to use digital tools, not just how to use them. 
• Security concerns. Innovation should never come at the cost of trust. Be careful with data, where it’s come from and what you upload. Use two-factor authentication, and control access to sensitive systems and data.  
• The AI bandwagon. The pressure to adopt AI tools is intense and it can be tempting to jump onto the latest innovation for fear of being left behind. But the same principles apply as for any technology – making sure that the tool is appropriate for the practice, is safe, and works for clients and staff alike. 

It’s important to be realistic about digital transformation, and AI in particular. Clients also have access to AI tools – in fact, they may well be asking ChatGPT questions they would normally ask their accountant. SMPs can’t afford to lag behind – if they fail to keep pace, clients will look elsewhere. 

Clients will always need and value guidance, expertise and the personal touch, even in the age of AI. The right technology will allow SMPs to meet the needs of their clients, efficiently and effectively – enhancing their clients’ business as well as their own.