“Reducing Hours” Won By a Landslide (And Other AICPA Engage Insights)
I attended AICPA Engage recently and thought I would share a few take aways.
What was the theme of the conference?
The two most common used terms and PE and AI. If I had a nickel every time they were mentioned….
Some take aways:
- PE is polarizing similar to so many things in American culture. The two extremes are largely not rationale. Some firms fiercely want independence, and some firms see the PE investment in the accounting industry as beneficial. Let’s face it, PE has brough liquidity to an industry that had none (more on that at another time). To each his own. There are a couple of other key take aways on the PE front. The industry has mislabeled some consolidators as PE when in fact the capital partner is NOT a PE firm but a family office or a private fund. As a firm, you should be aware of this and unpack where the money is coming from. Different capital sources have different expected returns and timelines. Capital source matters. Like all “headlines “it needs to be unpacked.
- AI and Tech. Dude, holy guacamole. Massive tech overload. Party in the exhibit hall. There may have been more exhibitors than attendees. Kidding, kind of. It’s mind boggling how much money is being poured (excuse the pun) into tech for the accounting industry. The AICPA is not shy about filling the sponsor spots. Do you know how much these start-ups are paying to have a booth at Engage? It’s not peanuts.
My main take away is there is new technology, new apps, new players, categories being created and a lot of app creep (overlap, how many portals does your firm have?). Frankly, it would be impossible to keep track of it all. A key mindset is to not fall prey to shiny new tool syndrome of AI FOMO. You need a clear tech plan, or you’ll waste time, money, and energy chasing shiny tools. Talk to firms doing it well. Undoubtedly many of the players will not make it.
- My main take away from the AICPA’s new CEO Mark Koziel keynote is the more things change, the more they stay the same. Regulatory changes, technology changes, staffing issues, business model transformation, the need to change, the need to protect the CPA brand etc.
Developing a pipeline of talent and retention continue to be two of the biggest issues for the profession. One variable where we can move the needle is reducing hours worked. If you want to attract and keep top talent, as a profession we need to stop burning them out. Renew firms cut hours – and their people stick around. It’s not theory. It’s proven.
The AICPA ran a live polling session at the end of the keynote asking for input on
Finance and Accounting 2040 (our understanding is what we want/expect the profession to look like in 2040) ....
In the polling they asked a group of several thousand accountants what needs to be on the priority list for 2040. Reducing work hours was in first place by a country mile over everything else…
Of course, this requires transforming your business model through target clients, defined services and better pricing.
Like the past and like it will be in the future, the profession is at a crossroads. The more things change, the more they stay the same.
In summary, it is a great conference to attend. It gets one thinking.
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