Tax and accounting firms are confronting several challenges, some of which have been long-standing issues. The shortage of talent, rising salaries, burnout, retention, knowledge loss, technology adoption, the tricky pivot to advisory – the list goes on.

It’s time for tax and accounting firms to innovate. Actually, it’s past due. However, the hot questions are – Who is responsible for innovation and what does it look like?

Many firms do innovation badly. There are many reasons for this. Some you may be aware of, and others may be new to you, but it helps to register the reasons so you can avoid them going forward.

Fear of rejection

Firstly, staff do not suggest innovations because of the fear of rejection. This could stem from a lack of trust or openness in the workplace or a perceived lack of support or resources. Without a sense of possibility, employees just won’t propose new initiatives. Firms should practice creating open and collaborative environments.

Inflexible culture

Sometimes, a rigid organizational culture can discourage employees from speaking up and suggesting new ideas. Is your firm’s decision-making process centralized and top-down? It could be an innovation-killer. The accounting profession is a highly traditional one, there is no denying this, but being aware of the fact opens the way for creating environments where innovation is encouraged.

Busy schedules

Sometimes it’s simply about workload and time constraints. Too much work can leave staff with limited bandwidth to explore innovative ideas. The irony is that innovation could free them up! Lastly, sometimes people need incentives or recognition to get going. Sometimes it’s that simple.

There are so many wins you can achieve when you innovate:

• Get more work done with less
• Provide new services that are relevant to a new generation of clients
• Build a great culture that attracts talent

No one person within a firm can solve all these challenges. Through collaboration and piloting ideas, answers can be found.

Innovation doesn’t have to be perfect

Stumped for innovation ideas? New work approaches lead to improvements, increased efficiency, and greater competitive advantage. Many growing CPA firms are considering offshore staffing. Things are changing so quickly and age-old challenges will not solve themselves. Don’t wait to innovate. An established improvement method like offshore staffing is innovation in and of itself.

Whatever you do, remember to emphasize the value of their ideas to your staff. Create a safe space for sharing. Foster collaboration and teamwork. Innovation can’t wait. If it’s new to you, it’s innovation.