Accountancy in the future
The real impact of 'Making Tax Digital' (MTD)
What is your ‘Average’ client worth?
- Fee income: £500 to £5000 for mid range accountants.
- The ‘norm’ is £1,000 to £2000 per client per annum.
- ‘Compliance’ is the key service delivered by most accountants.
- MTD is widely expected to have a massive impact on ‘compliance’ based fee income.
How are your Client Relationships Going to Change?
Right now your clients are ‘happy’ to pay for ‘Year End’ accounts, because they don’t see an alternative.
Consider how long it takes to submit a VAT return on Xero, how much value can a traditional ‘accountant’ really add?
Post MTD, what will accountants be doing for their clients?
What will be written on the invoice? How much will business owners be ‘happy’ to pay when they feel they have an option?
What are the 'Big Four' doing to mitigate risk?
Management Consultancy Fee Income is now greater than Audit Fee Income and they are acquiring ‘Management Consulting’ Businesses.
The Big 4 now generate more fee income delivering ‘Management Consulting’ than the top 4 Management Consultancy companies:
- Boston Consulting Group, (BCG)
- Bain and Company
- McKinsey and Company
- Accenture