High ranking firms earn significantly more revenue...just to note
By: Dr. Kristy Short
Whether you’re familiar with The Modern Firm® Maturity Continuum or not, the key takeaway is that firms ranking among the top continuum tiers are those realizing greater profitability. In fact, firms that identify as a Leader or Collaborator (top two tiers) are earning up to 39% more revenue per employee. Yes, you read that right...39% more per employee. And that translates to big bucks, big growth and prolonged sustainability.
The Modern Firm Maturity Continuum lays out as follows:
But what is it, really? In brief, The Modern Firm Maturity Continuum serves as a rubric for grading a firm’s technology maturity—enabling leaders to evaluate where they fall on the broad continuum. And by default, what they need to do to advance to higher levels.
Do you know where you fall on the continuum? If not, the first move is to find out. From there, you can better plan for the future and ready yourself for the changes required.
Data doesn’t lie...
In Rightworks 2024 Accounting Firm Technology Survey, nearly 500 firm leaders and decision-makers provided insights and attitudes on the role of technology in their practices. The big takeaway: No matter firm size, technology adoption helps significantly elevate revenue per employee.
So then, if technology has a major, positive impact on revenue, why are so many firms still hesitant to adopt and implement advanced apps? It’s a good question to ponder as we dig deeper into how adoption fuels revenue—while also identifying key blockers to achieving double-digit profit gains.
Technology-mature firms earn more...much more
The survey showed clear trends. Among them: firms that embrace connected, collaborative accounting technology earn more. High earners are also leveraging data to make informed decisions and are generally more technology-mature than their slower-to-adopt counterparts.
Survey respondents were asked to plot themselves on The Modern Firm Maturity Continuum. Firms that fall within the top three levels—Contender, Collaborator and Leader—are those earning more per employee. Consider each:
Firms that identified as Contenders (mid-continuum) realize at least 29% more revenue per employee than Initiators and Followers.
Firms that identified as Collaborator or Leader realize 39% higher revenue per employee than Initiators and Followers.
The data speaks for itself. Adoption of advanced cloud-based, connected and collaborative technologies supports increased revenue per employee and the ability to harness client to better serve clients.
What are the key blockers?
Long-held beliefs about technology adoption prove to be blockers for many firms, per survey respondents. Those who landed near the bottom of the continuum are earning considerably less than their tech-adopting counterparts. But why?
The core issues are cost and resources. Survey data also indicated that mindset plays a role in lack of adoption—with 28% of respondents citing internal resistance. Top responses included:
Lack of technology expertise: 44%
Cost/budget: 43%
Lack of understanding of choices: 29%
Internal resistance to new technology: 28%
Lack of time: 27%
Current tech hampers moving to the cloud: 12%
Despite reasoning, the fact is that technology maturity elevates revenue per employee. And that means it’s time to move past “how things have always been done” and adopt a new, modern mindset around technology and its value—including higher revenue per employee, operational efficiency gains and heightened security (more to come on the last two value props in future posts).
Ascend The Modern Firm Maturity Continuum
Modern firms are harnessing the power of connected, collaborative and cloud-based technologies to significantly earn more—on average, 39% more per employee.
Take some time to figure out where you land on The Modern Firm Maturity Continuum. And be honest in your evaluation. From there, you can start to chart your path onward and upward, taking your place as a Contender, Collaborator or Leader and enjoying the revenue hike that comes with it.
Download the full 2024 Accounting Firm Technology Survey to view detailed data. Convinced already? Want to move to a connected, collaborative, cloud-based tech environment? Get started today.
About Rightworks. Since 2002, Rightworks has been delivering purpose-built solutions for accounting professionals and their connected clients. Our focus has been clear: To help the profession continually progress by providing secure, advanced and easy-to-use solutions and services - and all with dedicated, expert support.
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