Revenue per Employee in an Automated World

Earlier this week we learned about the audit automation firm AuditBoard and it’s $3B exit. Made me think about automation, AI and it’s effect on CPA firms. Turns out, I’m not the only one wondering.

Embracing connected, cloud-based accounting technology can be a game-changer for accounting and CPA firms, with a potential 39% increase in revenue per employee! 📈 According to the Rightworks 2024 Accounting Firm Technology Survey, accounting firms leveraging advanced technology significantly outpace their less tech-savvy peers.

The survey, gathering insights from nearly 500 leaders in CPA, accounting, tax, and bookkeeping, reveals that technology adoption boosts revenue across firms of all sizes. 🏢 Firms positioned higher on the Modern Firm® Maturity Continuum—Contender, Collaborator, and Leader—see more substantial gains (in some cases significantly) than those on the lower end – the Followers & Initiators.

🔍 Some Interesting Observations:

➡️ Contenders enjoy at least 29% more revenue per employee than Initiators and Followers.

➡️ Collaborators and Leaders realize up to 39% higher revenue per employee than those at the lower end of the continuum.

Despite clear benefits, many firms hesitate to adopt new technologies due to perceived barriers. Common blockers include:

👎🏻 Lack of technology expertise (44%)

💰 Cost concerns (43%)

👎🏻 Internal resistance (28%)

🏆 So what sets the Leaders Apart? Leaders harness standardized, cloud-based tech stacks and AI-driven insights to proactively serve clients, driving efficiencies and increasing service levels. Their approach exemplifies the power of technology in transforming business operations.

💡 The message here is clear and somewhat unsurprising: embracing advanced, collaborative technologies can be integral in maximizing revenue per employee. In an era of fewer and fewer accountants, this should be music to the ears of many accounting & CPA firm leaders.

#Accounting #Technology #cpacareers #cpa #AI 🚀