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Contents
Introduction 3
Additional contributors 5
2
The accountant of tomorrow
Introduction
Change has been a constant in Regardless of the importance of
the lives of accountants in practice compliance and tax, there is a clear
and, although new regulations and determination that accurate real-time
a wave of technology continue to data can benefit the depth and level of
provide disruption, there are plenty services offered to clients – and makes
of reasons to feel optimistic about accountants’ careers more interesting.
the next decade.
Just how this plays out will largely
The significant regulatory burden for depend on the skills and ambition
both firms and their clients is expected within each firm and the desire and
to be eased by software partnerships need from businesses. However,
that, when in the cloud, will continually there is no doubt that the general
develop to meet demand and help to job description of an accountant
generate new opportunities. will evolve.
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The accountant of tomorrow
Sole
20%
trader
24%
Mid i.e. manager 1-9 43%
or departmental
lead
10-49 23%
76%
Senior i.e. business 50-249 9%
owner, partner,
managing director
250+ 4%
25-34 11%
35-44 26%
34%
55-64 27%
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The accountant of tomorrow
Additional contributors
A range of subject matter experts were invited to share commentary on the
findings of the research survey. These additional contributors possess extensive
experience within the profession and many are practicing accountants.
Stephen is the founder of Pell Artists, a leading Victoria has enjoyed over twenty-five years
business management, tax and accounting working in tax, accountancy and audit. From
business which advises ambitious creative talent starting her career as an accounting apprentice,
and household names. A chartered accountant she has since enjoyed senior roles within both
and chartered tax adviser, Stephen is also a industry and practice, successfully continuing her
strategic adviser to several disruptive tech professional studies from AAT through to ACCA.
companies operating in the music space.
Victoria very much enjoys supporting time
Working exclusively with ambitious musicians, pressured business people; taking away the
artists and experience creators from around strain that HMRC compliance often brings
the world, Stephen’s goal is to help his clients and bringing clarity and transparency to the
achieve financial freedom so that they can have financials of everyday business transactions.
the career and lifestyle of their dreams.
Mark Purdue has spent over 25 years working After 14 years of working in publishing
in tax, beginning his career as a Revenue businesses, including his role as MD of
Officer at HMRC before becoming Tax Senior PracticeWEB, Richard set up Principle Point
for a UK stockbroker. Mark joined Thomson to provide specialist insight and business
Reuters in 2006 and now holds the position development support for accountants, their
of Tax Product Manager. marketers, and their vendors.
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The accountant of tomorrow
The accountancy profession has had This is due to the digital capabilities understand this change to be ‘very
to continually adapt to changes in the of HMRC and the general availability likely’, reflecting an acceptance that
regulatory, technical and economic of technology to businesses and technology will continue to play a
environments – a trend and burden their accountants. From the vantage central role and could be disruptive;
that will continue well into the point of 2018, 74% of accountants both positively and negatively.
next decade.
74%
of accountants understand
this change to be ‘very likely’.
22%
Very likely
Likely
Unlikely
Very unlikely
74%
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The accountant of tomorrow
It is clear that doing business in the suggest it is easier to do, or be in, the right software’ and ‘the overall
future will not be any easier than it business. Providing support will be speed of technological advancement’
is today, and accountants’ main a critical function of an accountant a lesser concern to respondents over
concerns looking forward reflect and underscores their role in keeping the next decade. This underlines the
these challenges, with 65% seeing businesses compliant. relationship firms are developing with
Making Tax Digital (MTD) as the trusted software suppliers to meet
greatest challenge. These challenges will need to be expected demands – a point reinforced
overcome, not just by software but by the lack of concern around the risk
With digitisation of the tax authority, also by trained staff, who are expected of meeting compliance deadlines.
tightening of compliance regulations to be in short supply – with 17% of
on clients’ businesses and tighter respondents extremely concerned Technology will ease the increased
regulation of firms all coming top of about finding and retaining regulatory burden and help
the list of concerns, this paints a picture qualified staff. accountants navigate new regulation
of increased regulatory burden for all. and focus on client support. Indeed,
Technology is something that the there seems no lack of optimism that
However, a more technologically profession will become increasingly there will be plenty of work around, as
enabled world does not necessarily confident about, with both ‘choosing finding and retaining clients poses
the least concern.
How concerned are you regarding the following challenges over the next ten years?
Extremely concerned Somewhat concerned Not that concerned Not at all concerned N/A
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The accountant of tomorrow
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The accountant of tomorrow
Within ten years, significant With live data and greater integration and on the other, to reinforce the
progress will have been made to between applications, businesses position of trusted adviser through
move clients and practices online, will be more capable of efficiently analysis and consultation from the
making cloud technology the most meeting the digital tax agenda available numbers.
significant driver of change in the and this will also support better
role of an accountant. reporting and insight. While there is an anticipated role for
artificial intelligence, few expect robotic
Perhaps mirroring the anticipated Given the unique position of process automation or Blockchain
requirements for MTD, one dealing with both reporting and to have a significant impact on their
consequence of cloud accounting tax compliance, this access to data duties. This mirrors the current view,
will be the use of real-time data will further increase the value of especially for the latter, that these are
and more in-depth analytics. an accountant – on one hand, to technologies still looking for a problem
recommend the required systems, to solve.
Which three specific advancements in technology will change your role the most over the next 10 years?
67%
Use of real-time data, data mining and more in-depth analytics
52%
Greater integration between the applications we use
47%
Artificial Intelligence (AI) or machine learning
41%
Specialised accounting software
27%
Robotic process automation
17%
Communication technology
11%
Blockchain
8%
I do not think any advancement(s) in technology would change my role the most in the next 10 years
1%
Other
1%
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The accountant of tomorrow
Do you expect your time spent on the following compliance tasks will be more, less or stay the same?
Company tax
5% 9% 28% 38% 16%
Company set up
5% 46% 23% 15% 3% 6%
Personal tax
4% 13% 21% 42% 17%
Payroll
Accounts preparation
4% 6% 12% 38% 37%
Bookkeeping
5% 9% 9% 25% 48% 4%
Much more A little more No change A little less Much less Don’t know N/A
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The accountant of tomorrow
Wherever possible, tasks that can To automate the collection and Even if technology provides the
be automated will become the norm categorisation of transactional data as tools to make work easier, it would
over the next decade, as accountants much as possible brings the ability to seem that ten years is still not
foresee bookkeeping and data scale and offer an improved service. enough time to diminish the
collection as the tasks most likely importance of human relationships
to be taken care of by technology Work which requires human and demonstrable expertise.
in 10 years’ time. intervention and a judgement call is
very unlikely to become automated.
Firms that take work away from clients Client communication, business plan
should not have to bring more manual creation and audit all have significance
processing in-house as a consequence. and value in their operation.
Which ‘critical’ accountancy tasks are most likely to become automated by technology in the next ten years?
Bookkeeping
78%
Data collection
74%
Tax return submission/filing
65%
Report generation (other than tax returns)
57%
Tax return preparation
56%
Organising financial records
41%
Client communication
29%
Business plan creation
18%
Audit
13%
None of the above
2%
Other
1%
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The accountant of tomorrow
‘Tax in real-time’ means that The rest remain undecided or negative, Digital Tax Accounts forming a
business owners will not have to questioning both the usefulness and cornerstone of MTD, there is at least
wait until the end of the year to reliability of the data. an opportunity during the year to
look at their tax liabilities. check and validate data held by
Key concerns include inaccuracies in HMRC, before returns are completed.
The usefulness of up-to-the-minute real-time data, with respondents citing
tax data polarises responses, with HMRC’s performance in this area, and Aided by technology, accountants
almost 60% of accountants viewing a potential threat to both the fee could offer a standard service to
real-time tax as positive. income and ‘importance’ placed question and challenge tax
on accountants. calculations largely compiled
Accountants see clear benefits, automatically by the tax authority.
such as better cash flow forecasting What both sides do agree on is the
and liability planning, an increased importance of accurate data. With
awareness amongst clients of their tax
position, reducing year-end shocks,
and a potential gateway to more
advisory services.
How positive or negative do you think ‘tax in real-time’ will
be for accountants assisting clients over the next ten years?
is going to be the
foundation of advisory
work in the future. It is 6%
imperative that agents
have confidence in the
16%
accuracy of the source
data to enable the level
35%
of proactive service
clients will come to
expect.”
Mark Purdue 17%
24%
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The accountant of tomorrow The accountant of tomorrow
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The accountant of tomorrow
Reviewing clients’ processes and With the exception of the virtual This last point might also indicate
recommending IT systems come finance director and monthly reporting that the 50% who foresee business
top of the list of the advisory tasks services, all other areas of potential development/marketing as a critical
accountants expect to spend growth will generally create one- knowledge area also acknowledge
more time on in the future. off or infrequent fees. this higher value work may be
challenging to win.
This work is a significant opportunity These services will require client
but requires a broader and deeper demand, the expertise to deliver
understanding of technology and how and the ability to proactively market
it relates to clients’ operational and and sell the service.
financial systems. This is reinforced by
a belief that digital/cloud technology
will be the most critical knowledge area
Which knowledge areas will be critical for you to understand in the future?
– even above accountancy/tax law.
89% 82% 74% 51% 49% 2%
With technology acknowledged as
a service delivery essential, it is no
wonder such emphasis is placed
on developing the skills to piece it
all together, and there are obvious
benefits to the non-advisory parts of
the business too.
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The accountant of tomorrow
“Across the board, accountants expect to spend less time on compliance, with
automation playing a leading role with these mundane labour-intensive tasks, freeing
up more time for value-add advisory work, and reviewing the client’s business.”
Mark Purdue
Recommending IT systems
17% 35% 23% 6% 13%
Business restructuring
8% 23% 42% 6% 18%
Monthly reporting
14% 29% 24% 17% 8% 8%
Raising finance
7% 24% 37% 8% 19%
Confirmation statement
5% 49% 20% 15% 8%
Much more A little more No change A little less Much less Don’t know N/A
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The accountant of tomorrow
Accountants are most confident in With an anticipated increase in the Accountants will ask more from their
their ability to adapt to the changing frequency of reporting and a greater technology partners and much will
world of business and meet rising depth of detail, to stay on top of this depend on both the effectiveness of
expectations – both from HMRC will be no mean feat, let alone being the product and their confidence in
and their clients. Consciously aware able to realise new fee potential. the supplier to help them stay ahead.
of the need to develop new skills and
capabilities on one level, and adapt
and change the whole business
model if required on the other.
“It seems unlikely that even the most advanced
This depicts a profession aware of firms will be able to settle on a pattern of working
potentially significant change on the while both a more digital tax regime and greater
horizon and an increase in the overall
challenge of being in practice. A more availability of technology takes hold. If the
demanding client base will look to their profession acknowledges the last ten years have
accountant for the tools, knowledge
seen significant change, then these results indicate
and services to comply at every
stage within an increased regulatory it is at least preparing for a revolution to come.”
environment, and provide insight and
more complex advice based services as Richard Sergeant
a result of more readily available data.
Do you agree or disagree with these statements about how your role and firm will evolve over the next ten years?
I will need to integrate new skills and capabilities into my role over the next 10 years
96%
I will become more efficient due to technology over the next 10 years
79% 10% 11%
My advisory work will become more complex over the next 10 years
61% 22% 17%
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The accountant of tomorrow
1. Accept business model change 3. Identify an internal tech guru 5. Consider outsourcing as an option
Although compliance will continue to Appoint a go-to person internally to Although opinion was split on
sit at the heart of your service offering, help assess technology options and whether firms would outsource more
much of the work to complete these provide them with the confidence to compliance work in future, it could
tasks will become automated. More sell cloud services to clients. become an essential route to help you
accurate and timely data will provide deal with an increase in depth and
you with opportunities to offer more frequency of reporting by HMRC.
forward focussed services, and could 4. Attract future employees Don’t take it off the table as a
lead you to adjust your business model. viable option.
Make a conscious decision about
how to appeal to a younger talent
2. Develop new key skills pool. Training and development 6. Demand more from your
opportunities, as well as playing to software providers
A change in services and how they their digital strengths, could be an
are delivered will create a need for important factor in recruitment and MTD and real-time data will create
staff with different skill sets, such as could reduce staff turnover. more opportunities to automate
technology advisory, data analysis, between processes. Select technology
and the ability to present effectively partners committed to staying ahead
to clients. of the curve and developing fluid
integrations with other providers.
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The accountant of tomorrow The accountant of tomorrow
Victoria Cooper
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