Do you remember those fun Cosmopolitan or Teen Cosmo quizzes growing up? You know the ones…where they ask you all these ridiculous questions just to see if someone’s really into you. Or whether your BFF is really on your side. (For the men out there, sorry. I don’t know of any appropriate magazine references for you, so just pretend you know what I’m talking about.)
I used to love taking those quizzes as a teen. Did they help me in life? No, not at all. Well, except for maybe the color eyeshadow I should be wearing (violets and purples were good for brown eyes, just FYI). But they were fun and silly, and I couldn’t wait to see what quiz would be in the next month’s issue.
Now, you may be thinking, “What blog did I just stumble across? Is there anything related to accounting here?” Yes, my friends, there is. Because we’ve actually created our very own Cosmopolitan-inspired quiz for accounting professionals!
So, are you ready to find out if you’re running a modern accounting firm? Let’s find out.
How modern is your firm…really?
As you make your way through this quiz, be sure to keep track of your answers. At the end, you’ll see where your firm falls on The Modern Firm® Maturity Continuum.
Think you already know? Let’s get started. You may be surprised.
1. Think about your firm’s business model (i.e., your WHO, your WHAT and your HOW). How would you describe your approach to defining your ideal client and product/service offerings?
A. We take on any and every client who walks (or calls) in. And we offer a wide range of services (i.e., whatever the client asks us for).
B. We have a general idea of who our ideal clients are, but we still accept almost everyone.
C. We know who our ideal clients are, but we’ll take on others from time to time.
D. We focus on a specific niche and tailor our services to meet their needs.
E. We know who our ideal clients are and do not serve non-ideal clients. We also offer the services we want to provide.
2. Consider your firm’s mission, vision and values. How well are they defined?
A. We don’t have a formal mission, vision or value statement.
B. We have them, but we don’t do anything with them.
C. We have them, and we sometimes refer to them.
D. Our mission, vision and values are clearly defined, and we communicate them regularly to our team.
E. They’re deeply ingrained in our firm’s culture and guide our decision-making.
3. Busy season can make or break a firm’s culture. How does your firm handle tax season?
A. We’re always over capacity, and many of our staff work 80+ hour weeks, including weekends during this time.
B. We get through it, but it’s pretty chaotic and stressful for our team.
C. We have some control, but our staff put in a lot of overtime.
D. We have a pretty good handle on it, and our team works about 50-60 hours a week during busy season.
E. We know our capacity, have good control over it and rarely work more than 45 hours per week, even during peak seasons.
4. How would you describe your firm’s culture?
A. We have a traditional culture with an occasional pizza party.
B. We have some modern elements, like mental health days, but we’re mostly traditional.
C. We are doing several things to promote a healthy culture, but there’s room for improvement.
D. We have a people-driven culture and consider the well-being of our employees a priority.
E. Our commitment to firm culture is highly progressive. Our people matter most, and that fosters candid collaboration and innovation.
5. Think about your work environment (e.g., in-office, hybrid, remote). How much flexibility does your staff have?
A. All employees have set working hours, and we require them to work in the office.
B. Sometimes, we allow our staff to work remotely if they provide a strong case for it, but we prefer that they’re in the office.
C. We allow for some hybrid work if staff prefer it.
D. We have a flexible hybrid work environment with the option to work remotely.
E. We’re entirely cloud-based and flexible; our team can work remotely from anywhere.
6. Consider your current tech stack. How would you describe your firm’s approach to adopting new technology?
A. We prefer traditional methods and rarely adopt new technology.
B. We’ll adopt technology sometimes, but only if absolutely necessary.
C. We’re open to new technology, and we’ll implement it gradually.
D. We actively seek out and implement new technology that will help us streamline our workflows and improve our processes.
E. We’re early adopters of new technology, and we love to be at the forefront of accounting technologies and tools.
7. Artificial intelligence (AI) is everywhere. How does your firm use AI?
A. We don’t use AI and have no current plans to use it.
B. We know about AI but haven’t used it yet.
C. We’ve started exploring it for simple tasks like communications and data entry.
D. We use AI for several things like data analysis and payroll.
E. AI is integral to our firm, and we use it daily for processes such as tax returns and advisory services.
8. Let’s talk about cloud-based environments. Does your firm operate within one?
A. No, we use on-premises software and storage.
B. We mostly rely on local systems but use a few cloud applications.
C. We have an equal mix of on-premises software and cloud-based solutions.
D. We’re mostly cloud-based but still use a local infrastructure.
E. Our firm is completely cloud-based, and we use integrated cloud solutions in a fully managed cloud to run every aspect of our business.
9. Consider your clients’ needs. How well does your firm anticipate those?
A. We provide services when a client asks for them.
B. We’ll suggest services to clients every once in a while.
C. We regularly review what clients need and suggest relevant services.
D. We have a structured process for anticipating clients’ needs and proactively reach out to our clients about those needs.
E. We consistently deliver a holistic experience to our clients by anticipating their needs and providing comprehensive, proactive services.
10. How does your firm approach client collaboration?
A. We typically communicate through phone calls and in-person meetings.
B. We use email as our primary form of communication.
C. We have very limited real-time collaboration but use a client portal to share and exchange documents.
D. We use collaborative platforms for document sharing and real-time collaboration.
E. We have an integrated client experience platform that automates workflows, allows for real-time collaboration and boasts automatic updates.
Are you running a modern accounting firm? Check your results.
Tally up your answers. Let’s see how modern your accounting firm is.
Mostly A’s: Your firm is considered a Follower. Followers are typically more traditional firms that may not have a modern business model. They often have disconnected software solutions, inconsistent business processes and mainly provide compliance work. These firms have work to do to become modern firms.
Mostly B’s: Your firm is considered an Initiator. Initiators have taken the first step toward modernizing their businesses. This means they’ve probably begun standardizing workflows, started creating clarity around their business model and made the shift toward a cloud environment.
Mostly C’s: Your firm is considered a Contender. Contenders have made strides to simplify their tech stacks, leverage digital document sharing and improve client collaboration. They have clarity around who they want to serve, what they want to sell and how to deliver their services.
Mostly D’s: Your firm is considered a Collaborator. Collaborators have a well-defined business model, an intentional firm culture, standardized workflows and an integrated cloud-based tech stack.
Mostly E’s: Your firm is considered a Leader. Leaders have a clear business model that they never stray from. They have a standardized client tech stack in a secure cloud environment with seamless access to client data. Leaders have created consistent end-to-end processes and collaborate in the cloud. They offer work-from-anywhere opportunities, have an unmatched firm culture, and consistently use technology and AI to drive insights to identify and proactively serve their clients with high-value advisory services.
There’s always work to be done—even in a modern accounting firm
Whether you’re a cutting-edge trailblazer or your firm is taking its first steps into becoming modern, remember that it’s a journey…not a destination.
If you scored mostly A’s and B’s, worry not! There are exciting opportunities ahead to begin modernizing your firm. If you’re looking to get started, consider this quiz as a wake-up call to solidify your business model, explore your tech stack and reevaluate your culture.
For those of you in the C and D range, this isn’t school. You’re actually on the right track! Keep moving forward, embrace change and stay ahead of the curve by seeking out innovative solutions.
If you tallied mostly E’s, way to go! You’re considered a modern accounting firm and are helping set the pace for the profession. But don’t think you’ve reached the finish line just yet. Accounting and technology are constantly evolving, so you need to stay hungry for growth and innovation!
For more insight into how you can best position your firm for success, check out our free whitepaper to see how firms like yours are moving up The Modern Firm Maturity Continuum by using technology to generate more revenue, drive operational efficiencies and strengthen client relationships.
If you’re ready to start (or continue) your journey toward modern, become a Rightworks Academy member today!
