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The way we conduct business was instantly altered by COVID. It increased the demand for independent, remote teams, and the digital tools needed to make these things happen.

Agile businesses responded by modernizing their operations with cutting-edge digital tools that enabled them to prosper in the new business environment. However, the majority of professional service companies are still working out how to start their transformation process.

To develop the Digital Transformation Imperative, Hinge polled a large number of corporate executives and decision-makers from six key professional services sectors. This study report examines key issues and key trends that are now influencing digital transformation. 12 percent of those polled worked for accounting and financial service companies.

We made some eye-opening discoveries. Most organizations that have incorporated cutting-edge technologies into their operations have seen a significant return on their investments (ROI). All major performance measures, such as operational effectiveness, profitability, revenue, brand awareness, and client happiness, showed improvement for these businesses.

Even while more than 80% of businesses see the need for a digital transformation, there are still a number of obstacles preventing them from taking action.

The reason that over half of businesses haven't begun implementing cutting-edge technologies is that their current team doesn't have the necessary skills and resources. People with the necessary skill sets are highly sought after and frequently used to capacity for billable client work. Finding new staff has become more challenging as a result of The Great Resignation.

If you haven't begun your accounting firm's digital transition, think about this: Modern technologies are already being used by your clients. They anticipate you to do the same.

Digital transformation: What is it?

A digital transformation uses cutting-edge technologies and design thinking to reimagine corporate procedures, goods, and customer experiences for the digital era.

Digital competence is more crucial than ever. Businesses that don't emphasize their technology capabilities are less likely to be able to adjust to a shifting market and run the risk of having an outdated and irrelevant company strategy.

Sadly, 70% of respondents believe they are falling behind in this area. They acknowledge that many operations are still done manually and evaluate their level of digital maturity as "poor." Examine what you can automate and how you can use your consumer data more effectively in order to avoid falling into these traps. Next, sketch out a strategy for maturing over the ensuing few years.

Three Pointers for an Effective Digital Transformation

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It's easier said than done to implement a digital transformation for your accounting practice. To complete the work, it needs meticulous planning, support from leadership, a distinct vision, and qualified personnel. Here are some pointers to get you off to a good start:

1. Become as knowledgeable about your current systems, processes, and methods as you can. To find out more about the requirements and purchasing patterns of your target audiences, consult prior research or conduct fresh surveys. The ability to identify and prioritize the ways that digital transformation will help your firm is dependent on this knowledge.

You can decide which advancements should be made first thanks to this work. Make sure your vision is written down and in line with your company's objectives.

2. In order to improve the likelihood of success, employ a third-party vendor. These factors should be taken into account while selecting a vendor: They are capable of finishing the transition, comprehend the accounting sector, and are well aware of the project's objectives.

It costs more to outsource your work. However, employing computer experts with accounting experience lowers operational responsibilities, labor expenses, and the risk associated with recruiting and training new employees. Our research also showed that businesses with outsourcing were more successful than those with in-house management. The most important selection criterion is getting it correctly the first time.

3. Execute your project in steps. Avoid taking on more than you can handle, especially early on. A successful start creates the foundation for more ambitious phases and strengthens organizational backing. Make sure you comprehend how these stages will interact to help you reach your business objectives.

The time has come.

Although going through a digital transformation might be challenging, doing so is essential for improving profitability and revenue development.

There is currently a small window of opportunity to outperform your rivals due to professional service companies' delayed adoption of digital techniques. Competition is, of course, only one aspect of the situation.

Additionally, customer expectations are shifting quickly. Since the epidemic began, the majority of client interactions happen online. Utilizing cutting-edge technology that deliver top-notch consumer experiences is essential. To keep your clients informed and involved outside of personal encounters, think about developing automatic dashboards or trackers.

If you don't, you can bet your rivals will be more than pleased to satisfy your clients' demands.