About five years ago, I first began to read predictions that traditional accountants could soon find that their number was up. According to reports, accountants were literally living on borrowed time, because of technology’s relentless advance. I’ve even had accountants tell me this recently.
In 2014, it was estimated that almost half (47%) of job categories could be automated within two decades, with accountants and auditors high up on the endangered list. Technology would be able to complete most of their duties and tasks, faster, better and at a far lower cost, some sources predicted.
End game
In the coming decades, some believe automation will kill the accounting profession as we know it. Accounting software companies continue to add more automation to their wares, impacting manual accounting processes and slowly but surely removing the need for accountants and bookkeepers to take care of many simple tasks.
With little knowledge, freelances, contractors, sole traders and micro-business owners can now use apps that allow them to conveniently manage their expenses, invoicing and tax from their smartphones. Such apps provide data that makes filling out tax returns much easier.
They can be connected to current bank accounts and credit card accounts – while some apps even offer their own business current account. And they target accountants, encouraging them to get their clients to become users, so that accountants are freed from mundane tasks and can contribute value in other ways (well, that’s the marketing spiel, anyway).
“Many business owners may not be as tech-savvy as you believe. According to ONS data, only 48% of UK businesses have a website. ”
Cause for comfort
Some say it’s inevitable that in the future, tech rather than accountants will advise business owners on finance, funding, tax and other matters. Small-business owners may be able to use chatbots, for example, to have their questions answered in real time, for free or at low cost, rather than having to meet or call a flesh-and-blood accountant (and pay for the privilege).
Accountants are offered some crumbs of comfort in this brave new future world, because although there will be fewer accountants and accountancy firms, those still standing will take on more strategic and analytical roles, we’re told. Time will tell.
No one knows the extent to which technology will impact accountancy or how soon significant change will come. And many UK business owners may not be as tech-savvy as some would have you believe. According to the most recent ONS data, only 48% of all UK businesses have a website. The figure for micro-businesses is just 45%.
“Many people – especially older business owners – aren’t going to be using chatbots to have their business queries answered any time soon”
Vital role
Although research suggests that 100% 16-24 year old use their mobile phones to get online, more than a quarter (27%) of 55-64 year old do not use their mobile phone to get online, while neither do 40% of mobile phone users aged 65-plus. About 14% of people in the UK aged 60-plus now run their own business, either full time or part time, with a further 9% freelancing. So, we see that many people – especially older business owners – aren’t going to be using chatbots to have their business queries answered any time soon.
Clearly, accountants still have a pivotal role to play in ensuring that the UK’s 5.9m SMEs are kept well informed and expertly advised. Never more has that been truer than this year, of course when many micro and small businesses have relied on their accountants to help them negotiate their way through furloughing and tax and business rate changes. Small businesses also needed to know about government grants and loans, as well as how to cut costs and keep their cash flow healthy.
Throughout the UK, the best accountants and accountancy firms reached out regularly to their small-business clients, to give them life-saving guidance in the most challenging of times. With the economy in an alarming state, things still far from stable because of Covid-19 – and with the Brexit transition period ending early next year – small businesses need their accountants more than ever. Who else can they rely on?
• With 15 years’ experience as a leading writer of small-business content, Mark Williams is the founder of Dead Good Content, which specialises in producing cost-effective bespoke and readymade content for accountancy firms and other organisations that want to market their services to small businesses.
