The blogosphere is full of it.
Some people are calling it the “Fourth Industrial Revolution” and it’s the effect of increasing digital automation on the workplace. Globally. Put simply, automation is disrupting the way we work. And unlike in previous times of change, it’s not just blue-collar workers who are affected. It’s professions.
According to PwC, a third of existing British jobs are at risk of being taken over by robotics and artificial intelligence (AI) by 2030.
And one of the professions that will be affected most by automation?
You’ve guessed it. Accountants and book-keepers, who can expect up to 98% of their work to be automated in the next few years.
Now for the good news
The same article stresses that this disruption won’t necessarily result in job losses. Its author, PwC’s Chief Economist John Hawksworth, is a lot more optimistic than that:
“The UK employment rate is at its highest level now since comparable records began in 1971, despite advances in digital and other labour-saving technologies,”
His point is that, rather than roles disappearing, they’ll simply change. And with that change there is obviously opportunity to scale, be more productive and more professional.
Opportunity, as they say, is knocking…
Embracing change: one business owner’s story
Alice is a digital marketing professional who’s really interested in AI and automation. She says her own professional life has changed beyond recognition, too, but that’s not why she talked to us about her experiences.
“I love working with clients and producing great work for them, but – hands up here – I’ve never been a real fan of the admin side”.
For years, she admits her approach to managing her business was to chuck all her receipts in a box and hand them over periodically to her accountant. She did send out invoices on time, but – because she was using an Excel template she made herself, “I made mistakes which meant invoice payments were delayed and my cashflow was terrible.”
You get the picture.
Old-school accountancy firm
When it came to choosing her accountant, she had two criteria:
- “are they cheap?”
- “are they near to me? (because I’ll need to drive my box of receipts over and I don’t want to go far)”.
As it happened, the choice was not ideal. It was a real old-school accountancy firm and the monthly retainer she was paying was essentially for someone to enter figures into a ledger. There was little-to-no attention paid to helping her grow her business and – as she found out almost certainly to her cost – almost no attempt to give her good tax advice.
“I finally came to my senses and parted company with them.”
"They have become my trusted advisor in a way that – years ago – a bank manager might have been"Click to tweet
New breed of accountancy firm
What made her make the switch? A phone call from another accountancy firm. “What the voice on the other end of the phone said made me sit up and listen”, Alice says. “I knew I needed to change what I was doing.
She agreed to a meeting, then did all the vetting. Once satisfied it was a good move, she signed up.
Why? Two reasons. The first was the professionalism of the accountant in question. And the second? “He proposed I use QuickBooks.”
It’s been over a year now and – for the first time ever – Alice says she takes an active interest in her business affairs. “I enjoy being in control, looking at my cashflow and P&L reports. As for invoicing? It takes a fraction of the time it did before and I’m now 100% accurate”.
Easing the tax burden
She’s keen to stress that the burden she’s referring to is purely an administrative one. She pays the tax she owes!
But it was the admin she hated. And the thing she used to dread most was not knowing what her annual corporation tax liabilities would be in advance. “My old accountant could never give me a running total.”
That’s all changed now and the last time it was due, not only did Alice know what she needed to set aside, the process of paying it was seamless. Her accountant handled the whole thing digitally.
A trusted advisor
Alice is the first person to admit that she does a lot of the work her previous accountant did for her. But – thanks to QuickBooks – it’s easy, quick and she’s more hands-on as a result. “More importantly” she says, “I’m more accountable to myself, too”.
While her new accountancy firm is no PwC, it is clear they have embraced the digital age and the new technologies and ways of working that go with it. What’s more interesting perhaps, is that it’s clear they’ve become her trusted advisor in a way that – years ago – a bank manager might have been.
If you’ve found this case study interesting and useful, check out the other blogs we’ve written to support accountancy firms in the UK.Discover the QuickBooks Blog