Based on what's happening with Artificial Intelligence, technology could easily work out if there is going to be a cash flow shortfall and connect the business to a P2P lender. That's very similar to what the Xero chatbot is doing now.
Technology is reducing the amount of accounting resource needed. This trend will continue which means far fewer accountants will be needed.
What we are doing is focusing more on the client, not just the accounting work. In the cash flow example, this means coaching and mentoring clients through a cash flow crisis and coming up with ways to avoid and solve it before the loan is needed.
This does require knowledge and skill outside traditional accounting.
@Mark - I could be wrong but I reckon most business owners would be interested in saving time and money on their bookkeeping and accounting costs, especially if there number 1 most trusted advisor showed them how and supported them!
They don't because they are a) comfortable and b) put themselves before their clients. The brutal truth is in the answer by ExcelJockey in this thread click here.
@Mark - as comfortable accountants will not be looking for new things or effective at marketing/selling them to their clients...would you agree that their clients will miss out on benefits they could get if they were working with an ambitious firm?
@Sheepy - the percentage of businesses that retain an account will (I believe) be determined by legislation, not technology.
If HMRC push cash accounting and make it compulsory for micro businesses accountants will really be in trouble. I think there is a good business case for HMRC to simplfy the tax code for micro businesses, so it may happen.
But, regardless of that - accounting fees will be lower and fewer accountants will be needed.
I do accept I could be wrong about all this and/or the timing.
My answers
Tax is ideal for AI and innovations are already happening in law.
@RobertD - Machine learning will vastly improve the quality of data - in Rod Drury's words the next phase of accounting software is "magical".
Would you bet against him?
Will every business may need an accountant?
Based on what's happening with Artificial Intelligence, technology could easily work out if there is going to be a cash flow shortfall and connect the business to a P2P lender. That's very similar to what the Xero chatbot is doing now.
Technology is reducing the amount of accounting resource needed. This trend will continue which means far fewer accountants will be needed.
What we are doing is focusing more on the client, not just the accounting work. In the cash flow example, this means coaching and mentoring clients through a cash flow crisis and coming up with ways to avoid and solve it before the loan is needed.
This does require knowledge and skill outside traditional accounting.
Return on investment
@Mark - I'd argue that it's not a priority because 70% accountants aren't giving their clients a choice.
Bob Harper
Crunchers and the MORE network
Some clients
@Mark - I could be wrong but I reckon most business owners would be interested in saving time and money on their bookkeeping and accounting costs, especially if there number 1 most trusted advisor showed them how and supported them!
They don't because they are a) comfortable and b) put themselves before their clients. The brutal truth is in the answer by ExcelJockey in this thread click here.
Bob Harper
Crunchers and the MORE network
Comfortable or ambitious
@Mark - as comfortable accountants will not be looking for new things or effective at marketing/selling them to their clients...would you agree that their clients will miss out on benefits they could get if they were working with an ambitious firm?
Bob Harper
Crunchers Accountants
@Sheepy - the percentage of businesses that retain an account will (I believe) be determined by legislation, not technology.
If HMRC push cash accounting and make it compulsory for micro businesses accountants will really be in trouble. I think there is a good business case for HMRC to simplfy the tax code for micro businesses, so it may happen.
But, regardless of that - accounting fees will be lower and fewer accountants will be needed.
I do accept I could be wrong about all this and/or the timing.
Bob Harper
Crunchers and the MORE network
Filter
@Sift - I think OldGreyAcc has a great idea - can you put a "C" filter on for everyone!
If you do this you can tailor content - Comfortable and Complacent accountants won't be challenged, they can just pat each other on the back.
Bob Harper
Crunchers and the MORE network
Belief
@Ammie - it sounds that I believe in you more than you do.
Bob Harper
Crunchers and the MORE network
Light at the end of the tunnel
@ExcelJockey - yes, there is always the option of selling up and doing something else.
You're right there will NOT be enough added value work to sustain everyone so get out quick and establish yourself.
Bob Harper
Crunchers and the MORE network