According to the 2021 Data Breach Investigations Report by Verizon, 86% of all data breaches to companies and fintechs were financially motivated, and 61% involved credential data. When added up, the average cost of these data breaches for an accounting firm is $2.2 million, according to a report by IBM.

That's a lot of money and reputation at stake. So how can accounting firms protect themselves and their clients from cyber-attacks? 

Cybersecurity, as a concept, is the practice of protecting data, systems, and networks from cyber threats, such as hackers, malware, ransomware, phishing, and more. Cybersecurity is especially crucial for accounting firms because they handle sensitive client data that can be very valuable for cybercriminals.

In this episode, we will explore some of the most effective cybersecurity measures that accounting firms are adopting to safeguard their clients' data. We will also look at some of the emerging trends and technologies shaping the cybersecurity future for accounting firms.

ESG, as you may know, stands for Environmental, Social, and Governance, and it refers to the non-financial aspects of a company's performance that can have a significant impact on its long-term value and sustainability. ESG reporting is the process of disclosing information about how a company manages its Environmental risks and opportunities, and how it contributes to social and environmental goals.

Why is ESG reporting important? Well, there are several reasons. First of all, ESG reporting can help companies improve their reputation and brand image among customers, investors, and other stakeholders who care about sustainability and ethical business practices. By highlighting their commitment to ESG, companies can create a competitive advantage and differentiate themselves from their peers.

What is really happening with the accounting shortage?

As you may know, the accounting industry in the United States has been facing a significant challenge in recent years: attracting and retaining top talent. As the demand for skilled accountants continues to grow, firms are struggling to find qualified candidates to fill their open positions. 

But not everything is lost.

So, let's get right on it. What are the main reasons for the talent shortage in the accounting industry?

As an accounting professional, you know how challenging it can be to deliver high-quality services to your clients while maintaining profitability and staying ahead of the competition. And the market is not easy. According to a recent survey by Accounting Today, 42% of accounting firms reported a decline in revenue in 2022 due to the pandemic, and 38% said they faced increased price pressure from clients.

So how can you overcome these challenges and grow your firm? Building capacity is at the base of any attempt to achieve these goals there are a few key strategies for expanding your firm's capacity that can get you there, from leveraging technology to investing in your team and optimizing processes.

We all understand the importance of having a top-notch accounting team. But how do we guide our team to become the best version of themselves? How can we assess those who are not getting there?

Performance reviews provide an opportunity to assess individual and team performance, identify areas for improvement, and recognize outstanding achievements. By conducting regular performance reviews, you can ensure that your accounting team remains at the forefront of the industry, providing exceptional service to your clients.

Let's start with the importance of performance reviews. Why are they essential for any accounting team, but especially for elite teams that aim to stay at the top of their game?

Have you ever wondered why some teams work better than others? The answer lies in the way they collaborate across functions. In today’s complex remote world, collaboration is key to success. But it’s not just about working together; it’s about working together effectively.

Whether you’re a small business owner or a corporate executive, I hope that today's talk will help you come away with a better understanding of how to harness the power of cross-functional collaboration to take your business to the next level.

But first, let's talk about what cross-functional collaboration is and why it matters for accounting firms.

Did you know that 81% of accounting firms consulted that already have a remote team hired offshore employees last year?

The result I gave you before comes from a 2022 survey by ConvergenceCoaching®, which shows a significant increase in firms hiring offshore accountants from only 38% in 2020. In addition, 79% of participating firms retained a team member who relocated outside the practice's geographic areas.

Offshore employees are workers who are located in a different country than their employer. They can be full-time or part-time, permanent or temporary, depending on the needs and preferences of the firm and the employee.

Offshore employees can work from home, from a coworking space, or from an office provided by a third-party service provider. They can also work independently or as part of a team with other offshore or onshore employees.

Offshore employees are typically hired through online platforms, such as Upwork or Fiverr, or through specialized agencies that offer recruitment, training, and management services for remote workers.

There are many reasons why accounting firms are hiring offshore employees, but we can summarize them into three main categories: talent, cost, and service.

Are you looking for ways to attract and retain top talent in your accounting firm? Are you searching for a competitive edge in a crowded market? The answer may lie in embracing workplace flexibility.

Recent surveys indicate that professionals in the accounting industry are increasingly seeking flexible work arrangements that enable them to work from any location and at any time. With the rise of cloud computing and automation, accounting firms can now provide their employees with all-time data access, removing the geographic barriers that once limited their talent pool within their borders.

In this episode, we'll explore the benefits of offering flexible work arrangements to your team members based on the answer of 216 public accounting firms across the US to their thoughts on flexible work arrangements. But first, let's take a look at the current state of workplace arrangements in the accounting industry.

The COVID-19 pandemic has changed the way we work, with many professionals now seeking more flexibility in their work arrangements. The accounting industry is no exception, with a growing desire for a more comfortable work-life balance in terms of work location and work hours. As we move further away from the pandemic, it's clear that flexible work arrangements are here to stay.

This is confirmed by the results of the 2022 “Anytime, Anywhere Work™ Survey” by Convergence Coaching studied the flexible and remote work practices of accounting firms. The survey highlights the growth potential of accounting firms and the benefits of adopting a flexible workplace model.

The survey received responses from 216 public accounting firms from across the country. The results show that 94% of firms allow for flexible schedules, while 80% of firms allow their team members to work remotely on a regular or fluid basis. Additionally, 83% of participants indicated that the admin team can work remotely some or all the time.

It's clear that accounting firms are recognizing the value of offering flexible work arrangements to their employees. By doing so, they can attract and retain top talent while providing a better work-life balance for their staff.

But what exactly are flexible work arrangements and why are they so beneficial for accounting firms?

What is flexible staffing, you may ask? Well, it's a strategy in which companies employ contingent workers to meet evolving business and operational challenges, rather than hiring permanent employees. Contingent workers include contractors, independent freelancers, gig workers, and agency-provided workers, and are not on the company's payroll.

This approach aims to optimize talent and maintain competitiveness in the face of change. As the traditional model of hiring full-time or part-time employees gives way to more gig-based work arrangements, staffing agencies have become more important than ever in responding to companies' changing needs. This allows businesses to quickly increase or decrease their staffing levels in response to fluctuations in demand without lengthy hiring processes.

Employers who embrace flexible staffing models manage growth, change, and the ups and downs of business cycles differently. They rely on a stable mix of core and non-core workers, often obtained through staffing agencies, and use temporary resources to scale up or down in alignment with their business needs. These workers may or may not be employed directly, but are crucial to helping companies remain agile and competitive in a rapidly changing economy.

As you may know, remote work has become more popular than ever, especially after the pandemic. Many businesses have realized the benefits of hiring talent from different regions and countries, such as saving on costs and expanding their market reach.

But hiring remote workers is not as easy as it sounds. There are many challenges and pitfalls that can arise when you're dealing with candidates from different cultures, time zones, and backgrounds. How do you know if they have the right skills and experience for your accounting firm? How do you assess their fit for your team and culture? How do you manage them effectively once they're hired?

These are some of the questions that we're going to answer in this episode. We're going to share with you the top five skills that you should look for when hiring remote accountants, and how to evaluate them during the hiring process. These skills are not only essential for remote work, but also for the accounting industry in general, as it becomes more competitive and dynamic.

So, without further ado, let's get started!