2024: The Transformation Year for Accounting’s Change Management

Accounting firms in the United States are likely to face significant changes and technology adoption in 2024, which will drive revenue and profitability. Key challenges for accounting firms include staff shortages, inefficient processes, and excessive client work. To tackle these challenges, firms need to focus on efficiency and technology adoption. However, while accountants show interest in AI, only 25% actively invest in AI training. Key trends for the industry in 2024 include the need to monetize scope creep, finding and retaining talent in non-traditional ways, and effectively incorporating AI into accounting practices. Accounting firms need to manage scope creep and stop working for free, as out-of-scope work costs firms an average of $76,000 per year. Firms also need to find new ways to attract talent due to a declining number of accounting graduates and implement new strategies to create a more balanced workplace. Finally, the increasing role of AI in accounting requires accountants to become “technologists” and develop tech and AI strategies to provide high-value advisory services. Firms need to invest in training and redefine the roles they hire to meet these changing demands in 2024.