‘Cloud software set to transform the accountant’

A new report assessing the impact of cloud software on the accountancy profession has revealed that the extent of change since the introduction of the technology will lead to a breaking down of regular working patterns and a broadening of the role beyond number crunching into data analysis and management consultancy.

Signaling a new era in accounting, the report produced by software innovators Xero claims that significant numbers of accountants in Scotland think business management (45 per cent), risk analysis (51 per cent) and computer science (20 per cent) skills will be needed in order to succeed by the year 2026, as automation creates opportunity for technical analysis.

Accountants in Scotland (74 per cent) expect proficient knowledge of technology and automation in finance to be crucial to their success within five years. Furthermore, 27 per cent feel the extent of change will be so great they will need to leave the sector if they don’t adapt to modern methods by the end of the decade. Opportunity in Scotland remains strong; however, with 49 per cent confident they can adapt to change, as accountants top the list of most trusted advisors for SMB owners in Scotland (27 per cent).

Key findings in the report commissioned by Xero, which has over 860,000 subscribers to its software in more than 180 countries, with more than 160,000 of those in the UK, include a shift in the traditional ‘9-5’ as cloud technology takes over.

More than 40 per cent of Scottish-based accountants said that technology has made their working day more flexible and 81 per cent believe they would be more successful if they could choose the hours they worked.

Nine in 10 accountants (90 per cent) in Scotland believe this increased flexibility to be beneficial to those with commitments outside of work, such as parents.

Combined with technology enabling ‘anytime, anywhere’ connectivity, the options are continuing to grow for companies to change their working models and end the ‘one size fits all’ approach – increasing productivity at the same time.

The report also found that a major factor for Scotland-based SMBs when choosing an accountant today was responsiveness (16 per cent), a benefit that technology brings by giving real-time access to figures and a variety of ways to keep in contact, e.g. through software, email or instant messaging.

Xero‘s report also reveals that small business owners in Scotland expect to interact with their accountant through their accounting software (10 per cent), instant messaging (10 per cent) and via video calls (10 per cent). Only 59 per cent of Scottish small business owners thought they would still communication via email with thier accountants, followed by face-to-face interaction (43 per cent).

A growing number of Scottish small business owners feel the automation of certain tasks will give their accountants the ability to add more value to their businesses, with one in five (20 per cent) having asked their accountant for broader business advice at some point.

Although 60 per cent of Scottish business owners said they did not think they would need an accountant at all in 10 years time, the skills they consider to be most important in a business advisor are trust (49 per cent), attention to detail (41 per cent) and technical competence (30 per cent) – all key qualities of an accountant. As part of the full report, some SMB owners admitted to being willing to spend up to £10,000 on management consultancy to save a failing business – an area smart accountants can capitalize on.

Gary Turner, Xero’s UK managing director, said: “As we head into a prolonged period of technological change in the next five years it’s encouraging that many accountants see being tech savvy as a key survival skill. However, the survey also suggests that the profession needs to work harder on investing sufficient time in keeping abreast of emerging technologies, and in more effectively persuading SMBs that a close working relationship with a financial professional will be important in years to come.”