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Disruption in the accounting industry

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According to Entrepreneur: “Over the past few years, new technologies and tools have emerged and transformed just about every aspect of business, including marketing, management, web design and HR. It’s easy to feel like accounting and bookkeeping have been forgotten. Until recently, the industry was stuck in the dark ages. But with the emergence of powerful new technologies over the years, it’s finally beginning to look like an industry that’s ripe for disruption”.

Common causes of disruption are:

Complacency: Complacency is the enemy of businesses and is a key cause of disruption.

Frustration: Once businesses become complacent, customers become frustrated and problems start to arise.

Lack of automation: Automation is key in efficiency, when tasks are still being done manually it is costing a company money and time.

Emphasis on innovation: Disruption happens when startups prioritize innovation and offer automation to frustrated customers that were not receiving what they wanted from complacent companies.

Trends driving disruption at the moment are:

Clients wanting better connectivity: Online technology allows for easy connection between accountants and their clients. It allows for clients to be kept up to date in real time.

Automated data entry: This results in the disappearance of manual data entry, with upgrades in technology we are able to completely eliminate data entry.

DIY approach to growth: With the growth in accounting software there is a trend in businesses taking the “do it yourself” approach as it has been made easy for them to handle their own books.

Machine learning: AI is contributing to allowing accountants to access insights in real time and show them where the problems lay in comparison to other businesses in the same category which will allow them to immediately discuss the issues with their clients

Demand for specialization: Businesses are only interested in paying for exactly what they need. This means that the marketplace must change their strategy and accounting software providers have to adjust their products and prices according to the market.

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