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The Big Trends for Accountants in 2016

18th Dec 2015
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Technology is driving a once-in-a-generation shift in the accounting industry which we expect will hit a critical inflection point this year.

The move to cloud accounting platforms means software is doing more of the heavy lifting, freeing advisors from the drudgery of data entry so they can focus on higher value activities and help boost the success of their clients.

Automation takes a load off the accountant’s back

Automation is one trend that’s being discussed right across the accounting industry. HMRC is looking at how filings can be better streamlined and we’re building automation into our platform so advisors can better collaborate with their clients.

There has been some concern that automation will make accountants irrelevant, that’s very far from reality. Automation and technology changes in the industry actually place advisors back in the centre and opens up a raft of opportunities.

By freeing up your time, accountants can offer advisory packages to small businesses that were previously not commercially viable - either it was too expensive for the small business owner or there wasn’t enough margin in it for the accountant. With better access to data, the role of the accountant as a small business advisor is stronger than ever.

It creates an opportunity to expand services beyond the traditional activities. By providing meaningful accounting information to your clients in real-time, it is possible to offer high-value services such as debtor chasing using automated debtor chasing apps, sourcing funding or finance using secondary finance platforms that take data from online accounting platforms to make rapid lending decisions.

Data driven advice will be the norm

The idea of data driven advice is also evolving. With small businesses using a range of software solutions to run their businesses, from point of sale solutions to employee management, all of which feed into their cloud accounting solution, accountants can provide detailed, granular and customised advice, quickly.

With the level of expected service changing, the debate on fees has reemerged. Fixed-price billing is one direction accountants are headed, pricing up services and bundling them into packages for their clients. Technology is allowing workforces to be more flexible, so while staff labor costs may be increasing, the need for physical offices, and the overheads that come with them, is dropping.

All these changes also means firms require a wider range of talent so they can provide actionable advice. No longer is it just a number crunching service accountants offer, increasingly we’re seeing them weigh in on everyday business decisions.

Going deeper into the everyday business activities means more practices will start to hone in on a niche segment or industry which they service. This will drive firms to partner with each other, both around the world and across industries.

Payroll as a key service line for accountants

With the Auto Enrolment staging dates for small businesses coming over the next two years many companies are having to deal with more complicated payroll requirements. For accountants, the opportunity to help small businesses with this transition is huge.

To help meet these new requirements, software is being deployed which goes beyond the traditional payroll model to include a broader 'people' offering.

For accountants, payroll will become a door-opener to new clients.

Heightened competition for small business clients

With software making it simpler to communicate with and service higher volumes of small business clients, the competition for their business is heating up.

The big end of town accounting firms are starting to jump in on the small business market which means it’s more important than ever for smaller accounting firms to adopt the technology advances in their market and hone in on a niche so they can better serve their clients.

Keeping up with the heightened expectations of clients and vast technology changes means accounting firms will need to make significant strategic decisions in order to hire the best talent, grow their customer base and remain competitive. 

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