Make Every Minute Count: The Future of Bookkeeping and Accounting

What does it mean to be a bookkeeper or accountant today?

Accounting is one of history’s oldest professions and has changed significantly over the last 30 years, with technology in particular having a big impact. What began as keeping a list of ins and outs (or debits and credits) has transformed into one of the most essential and influential functions of any business. Translating the complexities of business performance into easy-to-digest insights (usually via spreadsheets) is no longer their only role, although it remains one of the most important.

Alongside the evolution of technology, accountants have become advisors, planners, evaluators and strategists. While being a heavily transactional role, accountants are also expected to build strong client relationships by being masters of communication. For a role that balances the books, it doesn’t leave much time for the individual's own work/life balance. This is something I am personally familiar with.

But what have we learned in that time?

And how will this impact the future of work?

Whether you are a small practice with a handful of people or a thousand staff and thousands of clients - what does the future of bookkeeping and accounting hold for you?

The History of Bookkeeping and Accounting

If I asked you to picture an accountant, what would you see? About 30 years ago, most people would have imagined someone hunched over a desk, furiously tapping away at a calculator, surrounded by uncontrollable reams of paper. And 30 years ago, you wouldn’t have been far off the mark.

Tasks that seem so simple today were once overwhelming. During busy periods, it could be close to impossible for bookkeepers to keep track of supplier payments. Or managing multiple bank transactions within a business would take more time than people had spare. Of course, one way or another, these tasks were completed - but at what cost? The sacrifice of valuable time aside, being overwhelmed with these manual tasks significantly increased the risk of human error.?

Fast forward through the emergence and dominant use of spreadsheets and then the Cloud and easy to use accounting platforms and it seemed as if things were finally getting better for accounting. Then Brexit and the Covid-19 pandemic put the finance industry through some of its most challenging years in recent times. Workloads that had become manageable with applications like Xero were overwhelming again. Sickness and the Great Resignation cut down many workforces to a fraction of what they once were.

Had it not been for the rapid adoption of technology, who knows what the world of accounting would look like today?

Even with the manual work still required in bookkeeping now, it’s nothing compared to what accountants were once expected to do. Running expense claims used to take up days of effort and can now be completed in mere minutes! If technology can help us to accomplish this in just three decades, what will the next 30 years look like in accounting?

The Future of Bookkeeping and Accounting

How can we possibly predict the future of bookkeeping and accounting? Well, first we need to answer the question that started this newsletter: what does it mean to be a bookkeeper or accountant today?

While applications like Xero have removed much of the pressure from bookkeepers and accountants' shoulders, there is still much work that must be completed manually; creating management reports, organising budgets, preparing profit and loss statements.

Repetitive, manual work like this is the arch-enemy of productivity. The most obvious reason why is because it’s boring - there’s no point trying to sugarcoat it. Even if you are someone who absolutely loves your job, completing the same mind-numbing tasks day after day will eventually get to you. It could affect you in ways that you don’t even realise. There is the most common effect: small human errors that develop into much more serious issues later down the line. Or, simply, your quality of life outside of work begins to suffer.

The progression of accounting roles has rapidly increased the number of responsibilities that come with it. Accounts must now input the data, interpret the data, communicate the data and then offer advice and direction based on this data. Some of these responsibilities are wasting hundreds of hours every single month. Hours that could be used much more productively.

There’s no denying how important the action of collecting and inputting this data is. But, unfortunately, this is not the part business leaders or your clients care about. All they want to see is the data in easy-to-access spreadsheets and understand what it means for their business. With the time being wasted on manually getting to this point, precious time is being lost that could be used to better interpret the data for your clients.

So, while technology has come a long way, bookkeepers and accountants are still struggling with mountains of repetitive manual work.

Do we really have to wait another 30 years before a viable solution is found?

How will Bots fit into the future of work?

Bots are a solution available right now to free up bookkeepers and accountants’ time. Any task that a person does manually on a computer system or application could be suitable for Bots, even some of those more complex and cognitive tasks that involve option and decision-making. Not only will they save time by completing tasks quicker but without the risk of human error, there are no further delays caused by mistakes.

How will Bots change the future of bookkeeping and accounting?

You could create stronger client relationships, step outside of your box and contribute to the wider business goals. You could even just make a decent cup of tea.

What you decide to do with the time is your choice but it’s Bots that will allow you to have that choice.

Right now, you are at a crossroads…

Will you continue to resist automated tools like Bots?

Or will you embrace the freedom they can provide?