Every now and again, a software giant completely disrupts an entire industry. It’s possible we may be witnessing this with Intuit in the accounting profession.
Last week I spoke about how companies like Uber & Airbnb took a traditional industry that was providing a subpar user experience and flipped it on its head to significantly increase ease of use.
But the Uber model is much more than about making things easy for users. While Uber & Airbnb are software companies, they are actually marketplaces, where buyers and sellers get together to transact with one another atop of their software.
For facilitating this transaction, Uber gets a cut, because this is business that would not have resulted without them in the first place.
If this model takes off, it will have significant implications for accounting firms.
For one, recruitment might be that much harder as this Uber model is easy entry for accountants to work on their own on-demand (a trend I wrote about here
Second, those that do not adapt may see further commoditization of prices, increased competition and the risk of decreased margins should one decide to join these marketplaces due to paying a cut on revenues.
As they say, adapt or die.
Now, on to this week’s Future Firm Weekly Top 5.