Industry Disrupters - Lessons From Uber For Small Business Accountants

INTRODUCTION:

Back in 2008, Travis Kalanick and Garrett Camp were having trouble hailing a cab in Paris. The simple idea they had was to create an app with a tap button to get a ride.

This idea has now changed the fabric of business around the world. Whether it's a sandwich or a package, people are using technology to get what they want when they want.

The Uber experience is an example of what is known as disrupters to industry. Basically, disrupters use innovative technology to disrupt industry that results in permanent change.

Whether you are a taxi business or a small business accountant, its embrace change and adapt or die. So what are small business accountants Sydney doing to stay relevant in this age of disruption?

Figure 1: Who would have thought how Uber would affect the status quo?

1. They are using new technologies - The firm of now

The small business accountant of now is thoroughly embracing technology. The advent of cloud accounting is making it easier to provide business advisory services to clients.

Accounting systems such as Xero now make it easier for accountants to stay in touch and jump in and see how their ckients' businesses are going.

They can be provided with alerts if targets are not being met on a financial scale and they can provide accounting data entry assistance far better than ever before.

On line training for team members whether it's tax pr other business advisory skills that they can use are now being easily downloaded via the internet and watched. Podcasts and webinars can be accessed for the latest goings on in the world of business advisory and these skills and knowledge can then be passed onto clients.

In terms of marketing, various forms of becoming known are being used such as blogs, websites and using platforms such as Facebook, Twitter, Google +, and Youtube to let the world know what services they can offer.

2. They contact clients at least once a quarter

As new cloud technologies take away some of the more data driven services from small business accountants, they do make it easier to find time to contact clients more regularly. Most will now interact with their small business clients on at least a quarterly basis and provide more of a business advisory/business coaching role.

Services known as virtual CFO are now part of most advisors' repertoire. Management accounts and reports can now be easily provided to clients at each month end.

Figure 2: Things have moved on even with X-Box!

3. They understand what marketing actually is

The threat of a shrinking revenue base due to cloud based technologies has seen the accounting profession on the lookout for more clients. How do you get more business clients? Well, usually you need to market. The days of word of mouth referrals only are basically over. Whilst these referrals are still very important, they are just one of the the very many strategies to get noticed.

Having to learn how to market using technology has seen some of these tips being passed onto clients.

4. They do not charge by the hour

The modern day small business accountant Sydney does not charge by the hour. Prices are quoted upfront, incentives added for payment up front and options for various services are offered.

This means the modern Sydney accountants need to be lean and willing to over more value or lose market share.

Figure 3: Charging by the hour is old school! Transparency is the new requirement. Photo courtesy of Lara Scolari Gallery Balmain

5. they offer business strategy sessions

The best accountants Sydney, offer strategic planning sessions for their clients. This is something that was rarely possible 20 years ago. In the past, clients would either be left to figure this out for themselves or they would pay management consultants to help them.

CONCLUSION:

Disrupters create a need for a whole new way of doing business and the accounting profession is no different.

If you have a small business, it doesn't hurt to ask yourself "What is the demand out there and where can I disrupt and win market share?"

This may seem difficult but if you keep asking yourself the question you may just find an answer that turns any current negatives into a wonderful business opportunity for you!