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New technology and changing client expectations have left many accountants uncertain of the direction the profession will take in Australia, new research shows.
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Accountants in a 'state of flux'
21 July 2015
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Conducted by global research company Ipsos and commissioned by software company Common Ledger, the research surveyed 50 small to medium-sized accounting firms in Australia, confirming practitioners feel the industry is currently in a “state of flux”.
According to the report's author, the findings indicate that accountants operate in a rapidly-evolving environment, with new software and technology available to them to improve efficiency. At the same time, their clients are increasingly looking to accountants for guidance and advice.
“The research we carried out with Common Ledger delivers some very valuable insights for the Australasian accounting industry,” said Ipsos account manager, Janet Cheng.
“For example, it shows that the bulk of accountants' time — around 60 per cent — is spent on compliance while only 40 per cent is spent on giving advice.”
Ms Cheng said this is unfortunate because it is the advice that really adds value to clients, “whether it is helping them achieve tax efficiencies or information about running their business”.
“Many accountants know they risk losing clients or becoming a compliance service only unless they adapt," she said. "There is a wealth of software out there to help them streamline their businesses and free up time for advisory work but many accountants don’t know what to choose, are risk averse and reluctant to change.”
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Common Ledger CEO Carlos Chambers said the reality is that advisory services are not well understood by many accounting firms.
"It’s a complex area — they are being asked to become trusted advisers across the business spectrum,” he said.
“‘Advisory’ means different things to different people, accountants and clients. One goal of the research was to help understand this more deeply and share the insights with industry.”
Mr Chambers said the research sheds light on the opportunities the accounting industry can harness and the challenges it has to address.
“We call it the 'Accountant’s Dilemma'," he said. "It’s a very exciting time for the accounting industry, with plenty of scope for firms to grow, but it’s a challenging time too.
“Clients want their accountants to be adviser, analyst and business partner. The ones who step up to this are the ones who are succeeding in the new environment and will continue to into the future.”
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