The commoditisation of accounting and bookkeeping services

11 Dec

According to Investopedia - ‘Commoditisation refers to a process in which goods or services become relatively indistinguishable from competing offerings over time. Generally speaking, commoditised products within specific categories are so similar to one another that the only distinguishing feature is pricing.’ Wikipedia has a similar explanation - ‘Commoditisation occurs as a goods or services market loses differentiation across its supply base, often by the diffusion of the intellectual capital necessary to acquire or produce it efficiently.’ If you are an accountant or a bookkeeper this concerns you. With advances in computer technology, specifically machine learning and AI (artificial intelligence), automation is fast catching up with what you do and the way you do it. The majority of the work you do, can be, and is being automated. Invoicing, data entry and general account coding tasks are fast becoming obsolete. This was one of the key takeaways at this years Xerocon South 2016 with Rod Drury outlining automation and machine learning as key technologies impacting on the accounting function. The question you need to ask yourself is “are the services you provide still relevant or are they sending you on the path to commoditisation or even obsolescence?” Staying relevant and not competing on the lowest common denominator (hourly rates) you need to reinvent your service offering and reset your pricing model. To do this you need to assess what value you provide now and what further value you can bring to the table. As Giorgio Moroder said ‘once you free your mind about the concept of harmony and of music being correct, you can do what ever you want.’ The same goes to your practice. You need to free your mind from preconceptions in the ways you provide and price your services. Once free, there are amazing opportunities to be pursued enabling you to provide new value and innovation in your field. In these challenging times, success or failure of your business will be determined by your capacity and capability in embracing this brave new world of technological advances and fast pace of change. So to help you embrace change, get in touch with the support team at Business Boost Centre. With many years of real world business experience and continuing investment in technology and innovation they are the people you want on your side. About Don Grgic Serial entrepreneur with failures and successes. Technology and science geek, often the early adopter. Visionary, strategist and tactician. He is a sucker for a good red wine. In vino veritas.