Digital-first accountancy paving way for job security, experts say

As technology continues to rise in prominence and more accountancy-adjacent tech firms push out cloud-based software, industry experts are urging accountants to diversify their digital skillsets.

“The prospect of AI and robots taking over and making accountancy jobs redundant has been a worry for probably as long as the technology has been around,” said Glen Foster, Director of Accounting Partners UK & EMEA at Xero, via email. “It’s important to note that change won’t happen overnight.”

Only 33% of UK citizens would seek financial advice from their accountant, according to a recent report by software provider Compleat.

Compleat’s report also showed that the chief complaints made by financial professionals and accountants regarding their workload are all things that technology could mitigate.

Of the top three complaints, two involved invoices (14% and 12% of complaints, respectively), while another was focused on handling legislation changes.

The technological takeover

Nearly half (45%) of those respondents believe that technology will make their role obsolete within the next five years, according to the survey.

One in four finance workers reported that they do not receive technology training.

To help mitigate this, firms need to properly upskill their employees, rather than expecting them to learn the technology on their own according to Foster.

“Keep things simple, ditch the jargon and invest in the right support and/or training to help staff get the most from it,” he said. “It isn’t a one-size-fits-all model. Some of your employees will happily read a document and get up-to-speed, but others may require more hands-on training or upskilling in certain technical areas.”

Alongside the additional training, accountants are able to expand their offerings and provide advice in digital-first formats. However, there is an impetus for the industry to embrace change, as Foster notes that clients under 40 years old are more likely to want a digital-first accountant.

“As the number of millennial SME business owners grows in the UK, our research shows there is a correlation between the accounting method used and net promoter scores (NPS) for this age group,” Foster continued. “It shows that using traditional accounting methods—like written journals, spreadsheets, desktop software, and the old box full of receipts—is sharply and notably correlated to negative NPS.

“This age group only rates their advisors positively when they’re using online accounting methods.”

A secure advantage

While some firms will already be MTD-compliant, new regulation also present new opportunities to upgrade technology, allowing firms to provide additional services. These upgrades may also offer stronger data security.

The Compleat survey also found that one in five finance workers (19%) “strongly agreed” that their business is at risk of fraud, due to the payment and procurement processes they use. An additional 37% of respondents “agreed” with the statement.

This majority statement shows that there is room for improvement on data security, which can in turn benefit a firm’s business output.

Andrew Lawes, Audit and Business Advisory partner at Mercer & Hole, said via email that the availability of cloud-based accountancy positively impacts his firm’s clients. Cloud computing, also referred to as real-time accounting, offers multiple layers of security without tying accountants to a single computer.

“This allows businesses to get a snapshot of their operations at any point in time rather than waiting for month-end or quarter-end reports to be produced,” Lawes continued.

“Also, management can access this information remotely by logging in anywhere in the world, enabling them to act on the information provided in a timely fashion, regardless of location. With time spent inputting and processing data reduced, using this technology also results in time and cost saving efficiencies.”

This may also allow firms to target new clients and demonstrate their digital skills, which is becoming more important to younger generations. A 2018 study by cybersecurity firm Radware found that 45% of millennials surveyed would not share personal information with companies, due to data security concerns.

Industries that require personal information, like accounting, may need to consider these factors when weighing their technological pros and cons, David Elms, Customer Experience Director for StatementReader, said over email.

“As data security becomes increasingly central to business operations, with clients often only choosing suppliers based on the measures they take to protect sensitive information, accountants should work with likeminded companies who have high levels of vigilance with data,” Elms commented.

As the industry’s technological offerings continue to develop, accountants are encouraged to look into digital options that suit both their employees and their clients.