Accounting firms face capacity hurdles and AI opportunities

Recent research highlights divergent operational challenges and growth strategies within the accounting sector in Australia and Malaysia.

In Australia, a study commissioned by Intuit QuickBooks found that while word-of-mouth remains the primary client acquisition channel for seven in ten small businesses, capacity constraints are a major barrier to growth. Approximately 70 per cent of firms cited capacity as their most common internal growth obstacle. This shortage of available production time often prevents firms from converting new referrals into active engagements.

In Malaysia, research by Xero indicates that top-performing accounting practices are achieving significantly higher profitability by integrating artificial intelligence (AI) and expanding advisory services. The study found that 91 per cent of surveyed practices are using or experimenting with AI, which can save firms substantial time and annual costs. Top-performing firms were also found to be more likely to use value-based pricing and structure teams around specific client segments to maximize margins.