The accountancy sector, like any other, is facing a sea change. The future is digital, not just for accountants but for everyone – at home and at work, the paraphernalia of our lives are leaving the page and being entered on to the hard drive. This is far from news. But despite the rising tide of digital information exchange, accountants work in what has historically been the slow lane of business development: finance.
Financiers are cautious by nature, and with good reason. When you’ve got the company’s money at your disposal, it pays to be careful before rushing into a new system, solution or infrastructure. No-one wants to be the unfortunate soul who unwittingly opens a system backdoor and sees the family jewels go rushing down the plughole.
Regulatory requirements also apply a natural brake to the speed of change – when your every move is dictated by compliance and you’re up to your ears in red tape, you’re a lot less likely to install the latest Shiny Object unless you’re sure it’s going to help you.
The balance of accounting
All of that means that accountants have to perform a high-wire act when looking to implement new technology that could help improve their services. They must take their clients on the journey with them, demonstrating the benefits of technology without bounding off ahead, missing the basic bookkeeping requirements that the majority of their customers still have. They must act as royal food-tasters, sampling the latest innovations and advising their clients on how they’ll affect their systems – and avoiding anything damaging. It’s a delicate pursuit.
New research that we will be sharing at Accountex has found that although many accountants are well aware of the benefits technology can offer them – improved accuracy, greater insight, reduced admin, deeper strategic understanding – they’re also seeing a slowness in actual uptake. That’s not because they’re lacking in vision or entrepreneurialism – quite the reverse. It’s because they have a responsibility to bring their clients along as they evolve and ensure that each innovation is up to best practice.
With that said, how can accountants communicate the value of digital transformation clearly and enable not only their own practices but also their clients to get the most out of emerging technology?
Technology feeding strategy
The answer lies in value-add services. Accountants that limit their vision to bookkeeping are missing a massive opportunity. As accounting software becomes more data-driven, integrating with other business services and bringing in data from across clients’ organisations, accountants have the chance to become valued strategic advisers. They can use their insight into the financials to provide advice on wider strategy.
For example, if they notice a sudden dip in revenues aligning to reduced productivity on the factory floor, they can begin a conversation with the client leadership about which areas need to be addressed to rectify the problem. Similarly, they can quickly pick up unexpected fluctuations in cashflow, whether they’re the result of error or fraud, and help the client to rectify the situation quickly.
The bottom line is that technology isn’t just a labour-saving device – it’s an intelligence-booster. Automating basic tasks definitely reduces the amount of back-end admin on which accountants have to spend their valuable time, but the really exciting thing is what they can then do with the time that they get back. A well-informed, data-driven accountancy firm can use the information that next-gen accountancy software gives it to grow its value in its clients’ eyes, not only improving stickability but also driving up revenues.
To answer our own question – is disruptive technology actually disrupting accountancy? It certainly is. The real question is whether accountants are keeping up. Those who take advantage of technology will have the jump on their competitors – now’s the time to get on board.
To find out more about the latest innovations in accounting technology and the findings from our industry research, visit Sage at stand 720 at Accountex London.
