Kasper Behrens has worked with digitalisation and management for 20 years. In 2014, he became Head of IT at Beierholm, where he was responsible for both IT and processes. His objective was to find ways to connect different systems and tasks to eliminate errors and make workflows more efficient through digitalisation. At Beierholm, Kasper Behrens has focused on strategy and management of operations, optimising and connecting systems to minimise errors and looking ahead to new technologies.
Small and medium-sized businesses in the accounting industry face major challenges in a digitalised world. Manual processes can be time-consuming and error-prone, increasing the risk of inefficiencies. At the same time, legislation is constantly tightening and non-compliance can be costly. Small businesses also find it difficult to compete with larger players who have the resources for advanced digital solutions and can better attract labour.
How can small and medium-sized businesses best meet these challenges? How do you embrace digitalisation and engage your employees in the transformation? In this article, I will share my experience of digital transformation in accounting firms and my top tips for becoming competitive, achieving efficiency and ensuring regulatory compliance at the same time.
Take the first steps in preparing your business for change
- Recognise the potential of digitalisation: The first step is to recognise what digitalisation can do for your business. This realisation needs to come from within the company itself, preferably in the management team. Manual handling of processes can be time-consuming and fraught with extra costs, such as postage and manual data entry. Especially in the accounting industry, efficiency is a key driver, as every minute saved means more time to serve the customer.
- Leadership and responsibility: Choose a responsible person to lead the digitalisation process. This could be an existing employee with a particular digital interest or mindset, or the creation of a new position for the purpose, or perhaps getting external help from a company that specialises in the field.
- Evaluate readiness: Once the potential is recognised, the company should assess its readiness. This involves a realistic assessment of the organisation’s current systems and processes, as well as the willingness of employees to change the way they work.
- Identifying needs: It’s important to identify which specific digital solutions will be most beneficial to the organisation. This should be based on current challenges and future goals. With stricter legislation and higher fines, compliance has become as important as cost savings. It’s not just about finances, but also about minimising the risks of non-compliance.
“The common denominator for success in digitalisation has often been thorough preparation, clear communication and strong leadership.” – Kasper Behrens
How to get your IT ecosystem up and running
There are many types of software and technology that are valuable for small to medium-sized businesses. Some of the most effective solutions include:
- Accounting and auditing software: These newer production tools can automate many of the routine tasks and minimise errors. These can also free up time for more value-added and meaningful tasks for the individual employee. Most importantly, it can integrate easily with other processes.
- CRM systems: Customer Relationship Management systems help organise and analyse customer interactions and data throughout the customer lifecycle. It is beneficial to gather customer data in one place where the system can provide an overview of customer interactions, case status and deadlines and help the accountant provide informed advice.
- ERP systems: Enterprise Resource Planning systems integrate key business processes and help streamline operations. Typically, ERP systems are integrated into large organisations, but new solutions tailored to small and medium-sized businesses are emerging.
How to tackle IT costs, compliance, and changing mindsets
Small to medium-sized businesses often face challenges such as high IT costs and strict compliance requirements. It’s essential to stay on top of professional standards and be prepared for quality control. Modernisation and streamlining are necessary to stay competitive and attract new employees.
Data and security must be the foundation
As organisations move to digital systems, data protection is crucial. Small to medium-sized businesses should follow data protection best practices and comply with regulations like GDPR. This includes encrypting data, regular security checks and training employees on data security.
Thorough research on compatibility and integration options
It’s important to choose software with good integration capabilities to ensure new digital solutions work well with existing systems and processes. It’s especially important to evaluate the compatibility of software solutions before implementation. This requires thorough research with potential suppliers before launch.
Training and support are key
Businesses should invest time and resources in training their employees in the use of new digital tools. The management or partner’s direct involvement in digitalisation plays a crucial role in whether employees accept and support the changes. If management doesn’t see the value in digitalisation and the big changes that come with it, reluctant employees won’t support the project either.
Adjust future perspectives and mindset
There are several technological trends that will be relevant to small to medium-sized businesses in the coming years, including artificial intelligence and automation. Getting qualified advice and finding relevant cases for the small business can still be challenging, but more and more digital tools for specific industries are becoming available. To prepare for future technological shifts, companies should be open to innovation and continuously evaluate their digital strategies. It’s also a question of a mental shift that needs to affect the entire organisation.
How do you know if it’s worth it?
Companies can measure the success and ROI (Return on Investment) of their digitisation initiatives by monitoring key indicators such as time savings, cost reductions and customer satisfaction. It’s important to have clear goals and regularly evaluate progress to ensure digitisation is living up to expectations. When these results can be measured and shared across the business, it will accelerate the adoption of digitalisation in the future.
By following these steps, small and medium-sized businesses can start their digitalisation process effectively and achieve both short-term and long-term benefits.
Where you know you need to take action but don’t know where to start, seek help from an advisor with industry knowledge.
Read more about how Penneo can help digitise your accounting firm.
