Big opportunities for forward-thinking accountants
We asked a selection of Accountex London exhibitors for their thoughts on the biggest opportunities for smaller accountancy firms and sole practitioners in the years ahead. Here’s what they had to say…
Andy Bailey, founder & CEO of Octopus Blue:
The accountancy profession is going through a period of accelerating change. When I started my accountancy career around 20 years ago, I was a historian and an archaeologist; last quarter’s VAT return, last year’s accounts and tax returns, carefully digging through boxes of paperwork to put together what had happened…
Today’s accountants are digital pioneers, exploring new opportunities for their clients. With MTD rapidly approaching, PSD2 opening banking standards and hundreds (thousands?) of software vendors and applications out there to help you out, you need to be looking forward and working with your clients to help them maximise efficiency and profits.
They don’t teach you this at accounting school, and this is where the biggest opportunity lies. Compliance is important, but with software and robots increasingly able to automate this, your focus as a sole trader should be on adding value to your clients as a trusted business advisor. That phrase is becoming cliché, but that’s because it is exactly how 21st Century accountants are evolving.
Rich Neal, CEO at MyWorkpapers:
Digital Transformation is probably both the biggest challenge and opportunity for sole practitioners, particularly ‘coffee shop accountants’ – ones that make the effort to get out to see their clients and discuss their business in a coffee shop, away from the interruptions of business. These accountants built a relationship with their client, it’s not about what they bill them for year-end work. Those that embrace digital, rather than run away from technological advances, such as cloud-based accounting, can be described as digitally savvy, and use it to their advantage and will outperform their luddite rivals. Not only are they aware of current and emerging IT, they understand how it can be applied to run their own business, as well as that of their clients.
Those that are blinkered to new ways of doing things, or ‘tools’, will inevitably fail to be proactive with clients. If they do not recommend how technology can transform the client businesses, and facilitate ‘making tax digital’, their clients will be forced to take the initiative themselves…and probably find a new accountant. In the past, practices may have pushed certain technologies, such as Sage, but the new generation of sole trader accountants are not shy of acting more impartially and simply advising on what tools are appropriate for each particular business, from the latest cloud book-keeping software through to other real-time information and collaborative applications; such as Microsoft 365 or Dropbox. In turn, this consultative approach acts like ‘client glue’ delivering greater value, respect, trust and long-term loyalty of clients.
Reshma Roy, head of marketing of Zoho Finance apps:
Sole practitioners get the flexibility to choose work with clients that they feel best. Their relationship with clients is more personal and there exists an opportunity for them to provide service and assistance on a deeper level. They become a trusted advisor and even a friend to many of the small business owners.
As your client base increases, it's important to keep up the relationship with existing clients strong. They must plan for growth and position themselves, identify a niche client base and develop an efficient strategy to capitalize on this opportunity with an efficient system in place.
Many accountants are turning to online accounting tools to automate tax filing, preparing financial statements, and integrating their accounting software with other apps, like CRM, to save as much data entry as possible. Technology today has empowered the lives of accountants and has helped them transition into the role of a business advisor. By setting up a digital plumbing system, accountants can manage their clients' finances, as well as focus on advisory services that go beyond the work of a traditional accountant.
The accounting landscape is changing and its changing fast. As an accountant or a business professional, there’s a growing need to keep up with the current trends, especially on the technology-front. Accountex, for example, provides you with an excellent opportunity to meet your current software vendors and potential new ones, allowing you to re-evaluate your position.
David Hughes, MD of PeerPay:
With the evolution of Robo advice, Making Tax digital, and more and more Accounting platforms, it is becoming more difficult to charge for standard book keeping services. Accountants need to embrace the digital revolution, build strong links with strategic tech solutions and build a value-based proposition for clients.
Looking back 10 years ago, only two Accounting practices used online Accounting and it wasn’t seen as a service for the future. Now around 50% of quality practices use technology and, with MTD on the horizon and Pension AE, it is likely that all those that want to survive will be ‘cloud based’.
Younger generations of clients will be expecting the ‘face book’ real time accounting and information that they can get from their bank/apps and other instant data feeds – spreadsheets and static data will not be good enough to grow with the upcoming superstars of business.
Ashley Leeds, Business Development Director at Mint Trio:
The future is looking very bright for accountants now. Scouring the job pages you see lots of practices looking for staff and the professionals that I speak to have never been busier. But why is business looking so good? Is it the increase in the number of small business needed advice? The niche areas that people work in? Or, just the sheer amount of work that is being piled upon the profession from the different government agencies?
Whatever it is, busy times are ahead and for the forward-thinking accountant, it is a great opportunity to make better profits and attract new clients. With MTD on its way, small business owners need more help than ever before.
Gone are the days of the accountant doing retrospective work. It is not just about statutory deadlines or final accounts, today’s business owners want help and advice. So the proactive accountant can find new revenue streams by helping grow their clients businesses. With all the new software available in real-time, the accountant can offer top advice at the right period.
If you want to make more money you need to look at ways to help your clients grow, increase their profit or to just be efficient with their cash flow. If you are ahead of the curve, you’ll be recognised as a business advisor rather than an compliance provider and will attract your ideal client. You need to set your business up as an advisory business that will do the compliance work as part of the service, rather than doing the compliance work with a bit of advisory on the side. There are loads of tools available today to make this approach easier and manageable for the sole practitioner.
This post was orginally published on the Accountex London website: www.accountex.co.uk/big-opportunities-small-firms-top-tips-accountex-pros.
Further reading:
That's good advice: top tips from some Accountex pros
A selection of Accountex London speakers and exhibitors share their advice for people just starting their career in accounting. Featuring:
- Neil Robertson, CEO of Compleat Software
- Emily Coltman FCA, chief accountant at FreeAgent
- Jon Martingale, product manager for Reckon One
- Mark Hill, owner of Ashfield Accountancy Service
- Laurence Vogel, head of UK operations at Informanagement UK
- Luís Pinheiro, director Of Bizdocs – The Digital Transformation Portal
