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The silent disruption of the accounting industry and here is one thing that you can do about it!

Some insights about the Australian Accounting Industry:

Enabling Technologies: Fintech is booming and fintech is now. with its built-in logic and compliance, means that business models can be built once, with data flowing through it automatically. The amount of time needed to prepare an audit or create a budget or forecast is greatly reduced, leaving staffers with the time they need to do more strategic work.

Customer Mindset. “It’s important that accountants don’t standstill. The overriding reason SMEs change their professional services firm is that their business needs have altered. This means accountants need to move with the times and modify their service offerings to their clients business needs as they grow and evolve.” NAB Key Insights into the Australian Accounting industry.

Platform: streamlined automated processes means accounting jobs will likely be automated. 0.94 where 1 = certain. Accounting Today
Economy: The mature life cycle of the industry is currently experiencing a wave of new customer expectations which is shifting the demand curve left and reducing pricing. Benchmark

Public Policy: the industry is driven by ATO policy and compliance requirements. Constant Tax law changes.
Services are reducing: Audit – more than 40% of Company Auditors who are also Accountants are aged over 61. 1,000 have left the industry in the last 4 years and there are now about 3,600. AFR May 12 2021.

Revenue for Accounting Services: has declined in the last 5 years. Down -0.5% – IBIS World
2021-2026 revenue is expected to increase – however competition will also increase. – IBIS World.
There are 34,996 businesses in this sector. – IBIS World
The Big 4 are now chasing SME customers due to their various technological innovations. They account for about 25% of the industry revenue.

Why do accounting firms need to partner with tech?

It looks like 31% of you already know that you would like to provide additional IT services.

Also, 13% of your clients would like you to offer Technology/IT Services. On this one, I believe that most SME’s would not know to ask you for that in the first place. So that 13% percentage is high as well.

Source: The above is from a NAB survey. I am happy to share this document with you.

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