For many firms, the future doesn’t feel bright. Their staff numbers are thinning, their tech is starting to creak, and their clients are beginning to struggle.

So, how can you get your firm and your clients out of survival mode?

To truly thrive in the future, you need to turn today’s challenges to your competitive advantage.

Today’s challenges – the perfect storm

If staff in your firm worry about the future, they’re not alone.

About 45% of practices still struggle to attract and keep talent after COVID. Many firms wait months to fill roles, leaving teams stretched and reactive. That leaves one in three exhausted staff making mistakes.

Technology is another sticking point. When your systems can’t keep pace, you expend more effort just to keep going. By now, many firms have built up a tangle of “solutions” that don’t share data but instead force you to retype everything. Other firms are not using dedicated software; they’re a spreadsheet formula away from things going seriously wrong. That’s before you get to the security problems any of these disjointed approaches bring.

With this tangle of processes, how can they handle Making Tax Digital (MTD), which 87% of firms see as their biggest challenge?

Finally, there is the issue of low business confidence; your client base is suffering. They are struggling under the pressure of increased employer National Insurance contributions and fear things will get worse. Ultimately, Dext research says 54% of UK small businesses say one more cost surge could force them to shut down.

All of this means you must find a way to solve your problems… and keep clients afloat.

The true nature of your challenge

A good modern, digital system will make life better for staff. It will make you as efficient as your rivals, and it will help you assist your clients.

It seems, then, that a bright future is one software purchase away.

But there’s a catch: change management. Buying software is easy; implementing it can be a steep learning curve.

You need true buy-in across your team. If you don’t, then people will go back to using their older solutions. Perhaps worse, they might use some of the new technology, but not all of it. When that happens, your client information ends up locked away in different locations, unable to communicate. You’re left with a patchwork of tools and the same old inefficiencies.

Coaching and genuine cultural shifts matter

The adoption gap is where many firms stumble. People often revert to old habits when they don’t see the benefit or aren’t confident in new systems. That’s how you end up back at square one, wrestling with spreadsheets and inconsistent data.

Culturally, you might also have an issue. There’s a misconception among some that increased technology harms client relationships. People may worry that automation and AI will make accountant/client relationships uncaring and robotic.

In truth, smart technology frees up your team from repetitive admin and gives them space to connect with clients in more meaningful ways. With real-time data, you can spot issues early, be proactive, and turn your firm into a true partner for clients.

But staff may need convincing of this.

The future-proofing fix for software adoption

So, how do you properly “change-manage” a system upgrade? Start with the cloud, move to automation, and then look into AI.

Remember, the transformation doesn’t need to happen all at once. The best approach is to evolve steadily, setting clear goals and tackling improvements step by step.

Begin with a foundation: move your core systems to the cloud. That way, you can start connecting data and making life easier for your staff. They can soon work from anywhere, collaborate and enjoy better data security. The result is near-instant support.

Once the cloud is working well for you, focus on where automation will make the biggest impact. Identify where your team spends valuable time on repetitive tasks. These could be compliance deadlines, paperwork, or client communications.

Take, for example, how automation can help with MTD. MTD can make life complex, as accountants juggle tax returns, quarterly submissions and the different approaches their clients want to take. With automation, you can retrieve data and see how MTD applies to different clients. From there, you can send reminders to clients with the press of a button.

Such wins affect technology adoption. When your team sees automation as a tool to cut busywork, not jobs, their trust will grow.

The role of AI and digital partners

That leaves the third area of innovation, AI.

We’ve seen how quickly this technology can improve in just one year. Some firms are already using AI to handle data entry, draft emails, and even surface client trends.

But rightly, people worry about it being misused.

A gradual approach, with small tests, is the way to go. Use AI for some parts of your processes first, rather than plugging it into everything all at once. See where it adds value, and where a human touch is still needed.

And most importantly, don’t approach this as a top-down directive. Involve everyone in the adoption process. Their engagement is critical.

How can you do this? If you are a mid- or large-sized firm, you might want to start entertaining the idea of appointing a digital partner. They will oversee technology innovation and keep you on track. They will prove their worth by demonstrating how they have added new efficiencies and better customer services to your system. This should also be visible in your firm’s bottom line. Before you hire, however, you need all partners to be happy with the idea of a non-fee-earning partner. If they are not, your new appointee will face obstruction at every turn.

Successful succession

All we’ve just discussed improves the day-to-day for your firm. But what about your grander plans for the future? I am, of course, talking about succession.

Developing such plans is trickier than ever. Many younger staff (and plenty with more experience) are starting to see work-life balance as more important than promotion. But if you involve these people in driving digital innovation, they begin to get invested. Give them small but significant projects as part of your future-proof vision. When you do, these people might stay on and become the partners of tomorrow.

Of course, that might not be the future you envisage. It could be selling your practice to a bigger firm or to investors. It’s much easier to do this when you are a digital-first firm. Buyers get clear data on how you speed up work, make life better for clients and improve your bottom line.

Focus on the future with our webinar

The challenges facing accountancy firms aren’t going away, but a measured, people-focused approach to transformation will put you ahead.

For a full set of tips on how to future-proof your firm, don’t forget to check out our webinar.

There, we dive into this topic in much more depth. We also discuss how you might want to design a future-proof firm from scratch, and also answer your top questions.

Click here to watch