Modern Accounting: Product Ventures or Productised Services?

Accounting is changing rapidly thanks to AI, and firm leaders are asking tough questions about their future. The old ways of billing by the hour and delivering custom work for each client are being challenged. In this new world, two clear paths have emerged: you can either package your existing services into neat products, or you can build standalone technology products from scratch. Let's explore what these really mean for your firm.

Two Different Visions

These two approaches reflect completely different visions for your accounting firm's future, though both aim to give you a lasting edge.

Building product ventures means embracing your inner tech entrepreneur. This involves creating standalone software or tools that solve specific problems for accountants or their clients. These often start life as internal tools you've developed for your own firm – clever solutions you've built that could help others too.

Packaging your services, on the other hand, takes what you're already good at and transforms it into standardised offerings with clear boundaries and fixed prices. Rather than reinventing the wheel, you're streamlining what you already do. While these packages can work perfectly well without fancy technology, they really shine when powered by the right AI tools.

How They Make Money

The way these approaches make money is quite different, too.

Product ventures typically earn through subscriptions or licensing – the software-as-a-service model that tech companies love because it brings regular, predictable income that can grow dramatically when a market need is addressed at scale. But this means competing in the tech world, which is a far cry from traditional accounting.

Packaged services, meanwhile, focus on delivering consistent results efficiently. By clearly defining what clients get and for what price, you create straightforward offerings while making the most of your existing relationships and expertise. This feels more familiar to most accounting firms because it builds on what you already know and do well.

Investment Matters

The financial side of these choices looks quite different as well.

Building a product venture usually requires significant upfront investment and a longer wait before you see profits. The journey from design to development to testing to market takes both patience and deep pockets. While it's riskier and more expensive initially, a successful product could completely transform your firm's position and value.

Packaging services typically needs less money to start and can begin generating income much sooner as you refine and scale your offerings. This measured approach appeals to many mid-sized firms wanting quicker returns. The trade-off? You probably won't achieve the 'scale' opportunity that successful tech products can deliver.

Balancing Risk and Reward

Product ventures bring more uncertainty, exposing you to the competitive tech market and all the challenges of software development. While they can leverage the relationships and position your firm has built over time, they require a significantly different mindset and internal capabilities. However, if you succeed, you could position your firm as a true innovator with massive growth potential.

Packaging services involves less risk because you're building on what you already do well – and operating in a similar fashion. This approach steadily improves your core strengths while creating reliable, if perhaps less dramatic, revenue streams. You're innovating, but on familiar ground.

People and Skills

Perhaps the biggest difference lies in the people and skills you'll need.

Creating product ventures means hiring technical specialists – developers, product managers, designers – which represents a major shift for traditionally partner-led accounting firms. This influx of new talent brings fresh perspectives and different ways of working that can either energise or disrupt your firm, depending on how adaptable you are.

Packaging services, while still challenging, focuses more on improving processes and delivery within your comfort zone. You'll concentrate on systematising your expertise, streamlining your procedures, and training your team to deliver consistent client experiences – changes that enhance rather than replace your professional identity.

Getting the Best of Both Worlds

Smart firms increasingly realise these approaches aren't mutually exclusive. Many combine elements of both to capture wider opportunities while managing risk.

Some start with their service expertise and use client insights to develop helpful technology solutions – extending their impact beyond traditional project boundaries. Others begin with a technology solution and build high-value advisory services around it, recognising that even the cleverest software often needs expert guidance to deliver full value, especially in complex areas like accounting.

Making It Happen

Whichever path you choose, implementation requires an honest assessment of your firm's goals and capabilities. Both options ultimately need you to rethink fundamental aspects of how your business operates – changes best made with expert guidance.

Successful transitions need a clear timeline, thoughtful engagement with everyone involved, realistic market assessment, and committed leadership. Whether you choose product development, service packaging, or a blend of both, your approach must feel authentic to your firm while giving you a meaningful edge over competitors.

Looking Forward

As technology reshapes what clients expect and how services are delivered, accounting firms face both challenges and opportunities. Both product ventures and service packaging offer viable ways to modernise and stay competitive. Your best choice depends on your appetite for risk, investment capacity, firm culture, and long-term vision.

By weighing these factors against market realities, you can position your firm effectively for the future. Whether through bold product development or thoughtful service innovation, embracing change has become essential not just for survival, but for thriving in this new era of accounting.