Friday, November 22, 2024

Futureproofing your firm

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As we wrap up another busy tax season, this is the ideal time to evaluate your infrastructure strategy and performance. Looking back over the past months, did your tech stack simplify complex workflows while keeping your firm safe from cyberthreats? Did it help you fill gaps, create cost savings and support your staff? Did it strengthen your ability to scale and deliver holistic, value-driven client experiences?   

If you can’t provide a robust “yes” to these questions, then you risk falling behind your competitors. Which means it’s time to futureproof your firm.  

Here are five infrastructure strategies to help you boost productivity, protect client data and grow your firm, now and into the future.  

1. Move to the cloud 

In the Accounting Today 2024 “Year Ahead” Survey, more than 25% of accounting firms anticipate a revenue growth rate of 10% or higher this year, and 89% of firms overall expect some level of growth. Managing this growth, however, can present numerous challenges, especially for small to medium-sized firms. It may overload current staff and require additional hiring. Additionally, it can potentially compromise the quality of your client services.  

Implementing cloud-based solutions for data storage and to run essential applications can position your firm for growth. The immediate advantages of cloud technology include the ability to access important documents from anywhere at any time, the secure storage of data and automatic updates for crucial applications. Additionally, cloud services enhance customer service by streamlining processes and enhancing collaboration capabilities, which can increase revenue from current clients. It can also support the acquisition of new clients and facilitates the attraction and retention of staff.  

2. Prioritize security 

One of the primary questions when planning to move to cloud-based operations is whether to manage the cloud environment yourself or implement a managed cloud and technology approach. In-house management will require an investment in skilled IT staff and dedicated resources to oversee your security 24/7. They will need to monitor app access, ensure security policies and guidelines for staff are in place, set up and track multifactor authentication and create a disaster recovery plan. 

You will also need to keep your data and your clients’ data secure. According to a recent study, as many as 70% of successful data breaches originate at endpoint devices. Employees may exit the security of the cloud at work, leaving your data exposed to cyberthreats. A layered approach to security is therefore critical. This begins with protecting devices in the cloud and extends to device security, network security and employee training.   

Consider, as well, the impact of in-house management on your firm’s scaling and flexibility. Do you have the expertise to ensure you can continue to scale your business while managing and working in the cloud? Will your management provide the right support and environment for your team? These are questions that will directly impact your firm’s growth trajectory and work environment.

3. Evaluate your app stack 

Next, consider whether you are positioned to manage and modify your app stack. Will operating specific desktop applications in the cloud be economically viable? How many apps does your firm use each week? Is access to every application secure? You also want to ensure you are auditing all app usage to see which tools employees are using, who has access to these apps and what usage is approved. Don’t forget that arriving and departing employees also need to be onboarded and offboarded from your apps.   

If you divide your infrastructure between cloud and on-premises settings, it will be crucial to have an extensive backup strategy. This will need to encompass all application data, regardless of location. Additionally, if you choose to keep certain applications on-premises, remember that your routers, network infrastructure, and servers are potential points of vulnerability.  

4. Prepare for AI 

The threat landscape is rapidly changing as the integration of artificial intelligence becomes more prevalent across industries. AI can positively impact productivity within your firm across nearly every app you use. However, you will need to safeguard client privacy and confidentiality, and protect your firm from AI hallucinations and biases. Strong AI management practices will be required to ensure all data remains accurate, structured and secure via regular audits, data cleansing and effective cybersecurity.   

This approach begins with a rigorous review of your firm’s data and security policies for AI tools. You will want to know if your submitted data will be used to train the large language model. Some tools have settings to disable this training and protect your data; others can leverage a set of APIs to disable training of the LLM by default.  

Training staff members to properly use your AI tools is also key. Make sure they appreciate AI’s potential to provide a competitive advantage for your firm and encourage them to responsibly experiment with AI. You will need to stay current with AI regulations and guidelines as they emerge and understand how these apply to accounting.  

5. Become a trusted client advisor 

Your cloud strategy should promote short- and long-term growth opportunities for your firm. This includes boosting flexibility and enabling you to offer competitive products and services to your clients. The right strategies can also optimize cost management and improve your ability to respond to changes in the marketplace.  

If your firm is struggling to achieve an optimal cloud strategy, keep in mind that your small and mid-sized business clients are probably facing the very same challenges. Defining an effective cloud roadmap and partnering with a skilled vendor can help you deliver valuable guidance to your clients and elevate your position as their trusted advisor.   

Your firm’s transition to the cloud can — and should — accelerate your business growth trajectory. You can learn more about what peers are doing and gain a better understanding of the latest technologies and opportunities by attending industry conferences. Consider, as well, working with an outside partner that can tackle the complexities of accounting infrastructure technology, including security issues. This will enable you to focus on what you do best: delivering holistic, value-driven services to your clients.

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