In our journey through the 6 Ds, we’ve explored the evolution of the accounting profession, from the advent of digitization to the current era of dematerialization. Now, we stand at the threshold of the final D: Democratization.
Democratization: Making the World Flat
Democratization in the context of technology is a powerful force that levels the playing field. When a product or service becomes fully digitized, the cost of transmitting that digital product to anywhere on the planet approaches zero. This means that success in one location can quickly become success everywhere.
Consider the lightning-fast rise of general ledger software such as QBO or Xero. With highly secure transmission of data, bookkeeping can be done anywhere in the world. Remember when we had to go to the office because that’s where the telephone and the fax machine resided? Now, we have teams that collaborate across the country and the world.
Also, consider the lightning-fast rise of ChatGPT in early 2023. In just five days, it went from an announcement to having one million global users. Within two months, that number soared to an astonishing 100 million users. This exponential growth is a testament to the democratizing effect of technology on information and services.
The Synergy of the Ds
Now, let’s weave together all the Ds we’ve explored: Digitization, Disruption, Deception, Dematerialization, and now Democratization. Add to this the power of networking effects, with 8 billion humans participating in this digital age. Imagine everyone applying these technologies to fields essential to human existence, such as energy, water, education, food production, communications, and healthcare.
The result is the emergence of a new world, defined by unprecedented abundance for everyone, even the most impoverished. This phenomenon is not just a theoretical concept. It’s a transformation that has already begun reshaping our world. Consider the following developments documented in “Our World in Data”
– Between 1820 and 2015, the proportion of humanity living in extreme poverty plummeted from 90% to 10%.
– Between 1800 and 2016, the global literacy rate increased from 15% to more than 80%.
– Between 1800 and 2017, the global child mortality rate plummeted from 42% to under 5%.
– Between 1779 and 2019, average global life expectancy skyrocketed from 30 to more than 75 years.
These are not small achievements. They represent a seismic shift in the quality of life for billions of people, largely driven by the democratization of technology and knowledge.
The Future for Multimillion-Dollar Revenue Accounting Firms
Now, let’s bring this phenomenon home to the future of business in public accounting, particularly at the level of successful local multimillion-dollar revenue firms.
Democratization in accounting is reshaping the profession in profound ways. Accounting firms, once limited by geographic boundaries, can now serve clients anywhere in the world. The expertise and tools that were once accessible only to the largest firms are now within reach for even mid-sized and smaller firms.
This democratization enables accounting firms to tap into global markets, diversify their client base, and access a broader talent pool. It allows them to offer specialized services and insights powered by advanced technology.
I want to bring home the point that technology is a lever for public accountants to do more for their successful business owner clients. The insights professional accountants can develop with the most important information and knowledge in these businesses are priceless. Not just for more profit or efficiency but transforming the lives of their constituents across their communities.
Smart clients are beginning to expect and demand real-time insights, data security, and ethical practices, and firms that embrace these principles thrive in the democratized landscape.
The future for successful local multimillion-dollar revenue accounting firms is one of limitless possibilities. It’s a future where the democratization of technology empowers them to serve clients with excellence, contribute to global economic growth, and continue their journey as trusted partners in financial success.
As we conclude our exploration of the 6 Ds and their impact on the accounting profession, we stand on the precipice of an exciting future—a future where democratization paves the way for unparalleled growth and prosperity.
The journey continues, and the future of accounting beckons with open arms.
