The business ecosystem is changing and forcing accountants to redefine their roles within the businesses they support.

The International Federation of Accountants (IFAC) have identified four key areas within finance function transformation that they believe will help creating and preserving value:

In a 2021 survey of over 6,000 small and medium-sized accounting practices, 78% expected new technologies to affect traditional accounting and advisory services. If artificial intelligence (AI) and machine learning are set to replace predictable and repetitive work, creative work and customer relationship management will remain with human advisors.

The primary role of an accountant is to prepare financial statements and reports while performing financial analysis for clients. However, more recently, accountants have sought to widen their service offering and further entrench themselves within the businesses they advise. Additional roles that are becoming increasingly ubiquitous are:

End-of-year bookkeeping is no longer enough for many businesses and customers want clear guidance and advice to better manage their businesses. While many welcome the increased involvement and work, a 2020 study by Sage found that 87% of accountants reported that customers expected a wider service offering but expected to pay no increase in fees.

The rapid growth of technology is providing accountants with new tools to better service their clients. To remain competitive in the market, it is vital they remain current with the latest offerings in order to leverage them for their clients. 91% of accountants say technology allows them time to focus on their clients and the time taken to explore new technologies shows a clear benefit in the medium- to long-term.

The move to digital and increase in online solutions for tax declarations, bank statements, payments, and forecasting is a trend that is set to continue. So, those unwilling or unable to adapt risk being left behind in a market that is becoming more and more competitive.

Today, accountants can rely on numerous software solutions to maximise their performance and save time. The impact of AI and machine learning on the industry is becoming increasingly prevalent as is the emergence of cloud solutions.

Accounting software is not new –it was already around in the 80s – but it has evolved to become increasingly user-friendly with more and more features every year. Excel is still a popular choice, along with other desktop solutions, but cloud solutions such as Xero, QuickBooks, or Sage Business Cloud are quickly taking the lead in providing accountants and businesses with a full suite of tools for business management. Being hosted in the cloud adds flexibility for customers such as remote access, reliable data back-ups and multi-tenancy access.

Xero user Andrew Bailey, a Director at Don Bailey & Son, commented on how his business has benefited from such advances in tech:

“We improved our processes by using Xero for raising sales invoices on-the-go via the Xero mobile app which improved our processes significantly. The issue of payment collection remained though, as although we included our BACS details many took a significant amount of time to pay as it required time and effort, the Crezco “Pay now” button removes this roadblock.”

With the accounting software market tipped to grow by $7bn by 2026, there will be no shortage of new solutions.

Accountants can leverage the power of these software solutions and their machine learning algorithms to focus on their relationship with their clients instead of wasting time on repetitive work. This results in a better relationship with their clients, a higher level of service, and more accurate data in making key decisions.

COVID-19 impacted businesses of all sizes and forced companies to find new efficiencies to remain operational. Automation, cost reduction, and better cashflow are critical areas for success.

Over 51% of small businesses suffer from late payments, with UK SME's owed almost £50bn in late payments. As small businesses cling onto cash, the domino effect of late payments is felt throughout the supply chain, but in some instances, they come as a result of friction in the payment process. The end result means businesses are wasting time chasing late payments and suffering from poorer cash flow and buying power as a result.

Fortunately, businesses can rapidly improve their payment flow with companies like Crezco. Their instant payments allow customers to pay directly from invoices and checkout with their bank in a couple of clicks. Crezco is a simple, secure and easy solution for the payer and a quick, reliable and free method to collect payment for the payee.

Market uncertainty has put further importance on data forecasting for businesses. Companies like Syft Analytics make data analysis simple, helping companies improve forecasting and reporting for investors and stakeholders.

A Sage report found that 63% of accountants are now putting more emphasis on financial advisory services, with 51% believing that cash flow and growth modelling to be a key skill for new accountants.

COVID-19 has accelerated technology adoption and forced us to adapt to new ways of working. Accountants are now leveraging new technology to improve their service quality and speed. Reducing time on repetitive tasks is now allowing more time and effort to be spent on business advisory, which adds greater value for their clients and further deepens their trusted relationship.

With the accounting landscape constantly evolving, now more than ever, accountants must leverage new technology to efficiently service the increasing demands of their customers. While automation and technology provide businesses with more tools than ever to succeed, they are still seeking human guidance from their accountants and advisors as they seek growth and improvement.

Arnaud Roche is the Head of Marketing at Crezco. Arnaud enjoys educational and creative work to help people in the B2B space. Less is more; he believes everything should always be simplified as much as possible. Arnaud is a tech addict and is very excited about the future of open banking. He is also a cinema lover, with Scorsese and Fincher as his favourite directors.