Online accounting will mean a new breed of accountant

Successful businesses are driven by owners who really know their numbers

Online accounting has acted as a slow-burning fuse for an explosion threatening to rock the business world. Particularly among small and medium enterprises, the ability to produce a set of financial reports without paying expensive accounting fees is an enticing prospect.

The reality is that the software only produces output based on input, and business owners often have only a vague notion of the inputs needed. That is about to change, as software developers up their game, and artificial intelligence like features guide users in running their finances.

But that doesn’t mean accountants will disappear. The findings of the SME Survey 2018, the latest edition of an annual study of success factors among small enterprises, reveals that this profession still has a long life ahead. However, it may not be the life that many of its practitioners had envisaged.

Right now, the research shows, a massive 86% of SME decision-makers indicate that the main reason they use accountants is for bookkeeping. When that role diminishes, however, two roles wait in the wings. A solid 41% of respondents say they rely on accountants for financial advice on their businesses, and 40% require accountants to serve as tax specialists.

One of the most subtly interesting findings of the research is that SMEs expect their accountants to be clued up about online accounting. While 61% of respondents used accounting packages on their own computers, a third depended on packages used off-site by accountants.

Yes, most SME decision-makers believe their accountants are tech-savvy, meaning that, while the accountant does the real job, business owners feel comfortable using outdated solutions in their own offices: just over a quarter of SMEs still use Excel spreadsheets for financial data capturing.

Coincidentally, a quarter of SMEs are considering changing their systems.

Along with more sophisticated roles for accountants, this suggests SMEs are on the cusp of a digital revolution.

Wendy Walker, head of global expansion at Intuit Quick Books, which backed the SME survey, argues that being digitally astute can transform business life. “Technology brings new opportunity to the business world — especially when it comes to online accounting,” she says. “Successful businesses are driven by owners who really know their numbers, and the power of digitally based resources makes this more accessible for all businesses. With the ability to view business data any time, anywhere and on any device, owners can make smarter, more informed business decisions based on real-time insights.”

As a result, cloud-based services are a critical component of future accounting software, increasing efficiency and even collaboration for accountants and SMEs. “It enables easy collaboration between all parties involved in managing the financial health of a business,” says Walker.

The insights into financial health can, in turn, be used by accountants to help decision-makers fine-tune their decisions, their business models and financial models. The result is a more competitive and sustainable business.

Who wouldn’t want that revolution?