In a previous article, we discussed our “5 tools to save you time in your business”, and explored the various innovations that are set to change how many entrepreneurs and professionals do business. However, the future of accountancy is not just being defined by software, but by the people themselves. The way individuals act with accountants, as well as accountants themselves, is set to go through an increasingly transformative time that is set be exhilarating, and frankly, a little daunting in equal measure.
Technology is taking over a vast swathe of the functionality normally adopted by accountants. Whereas before, accountants had to spend time and resources inputting data and supporting their clients, the majority of this is now done automatically. In fact, according to a number of sources, by 2020 90% of small businesses will have embraced cloud accounting. This is set to have two impacts:
This means, increasingly, accountants are outsourcing traditional bookkeeping roles to places like India or the Philippines. This shift is now in its earliest stages and it will be interesting to see how it plays out in the longer term.
Accountants will have to add value through other avenues and, with a focus on them adding value through business advice. In the future, accountants will add value through the power of data analysis rather than input; offering powerful advice and (helpful) assistance that will help businesses flourish. One service we believe to be essential for accountants to offer is a more proactive approach to your accounts, as well as no additional charges for sorting your data.
Becoming an accountant is no longer quite as desirable as it used to be, with one American statistic suggesting that in 2006 there were 2,600 certified accountants compared to only 600 in 2016 in one particular state. Whilst we could only find clear statistics for America, the impact of this trend is already being felt in the UK where salaries for newly qualified accountants has risen from £35,000 to £45,000, whilst a number of organisations are looking to make employee packages far more desirable with flexible working options, proving that the companies are desperately seeking skilled accountants for their companies by increasing their investment in them. We expect to see far more of this moving forward as the accounting world looks to narrow this skills gap.
This is legislation that is set to become law for all VAT registered businesses for their VAT obligations from April 2019, where their turnovers are in excess of the VAT threshold (currently £85,000). This legislation states that businesses must set up a digital tax account and maintain financial records on software approved by HMRC. What this really means is that those businesses who had previously been using Microsoft Excel will now be forced to use cloud-based systems, and it rather begs the question: what else will the government enforce in regards to compliance? We expect there may well be some stricter legislation around this topic moving forward.
It used to be overly painful to move accountants, involving a slew of paperwork and, generally, it was more effort than it was worth. However, thanks to cloud accounting – moving from one provider to another is now extremely easy. This means accountants will have to develop far more defined brands and processes that delineate a robust user journey that ensures clients feel engaged and supported.
Not only is marketing of increasing importance in our sector, but accountants will need to adapt to our 24/7 culture in other ways. Being on-hand around the clock is a vital way of combating the rise of Google, who offers constant advice. Accountants will also have to use social media more and more, both to enrich their presence, and as a way of connecting with their clients and remaining relevant in the modern era.As accountants who love learning new ways to help our clients save time, we are so excited to see these new technologies helping both us, and our clients, with new ways to save time and expenses. We look forward to seeing other new technologies, and advances within our sector and sharing them with you.
