As part of the first edition of the Sage Download, the newsletter that covers all you need to know about how technology and innovation is driving business growth, we’ve spoken to the accountants who are leveraging technology to revolutionise businesses everywhere. We believe these professionals are the true year-end heroes – and they don't get enough credit for the innovative work they do to enhance business performance. Read their thoughts on how technological tools are reshaping the industry and driving growth for the organisations they work with.
By Chris Torney
Technology has transformed the way accountants are able to help their clients increase efficiency and drive growth. We talk to leading practitioners to discover how the latest tech is reducing the administrative burden on small and mid-sized businesses, while also helping to generate strategic insights.
Over the past decade, the role played by accountants in supporting their clients’ growth aspirations and strategic planning has undergone a seismic change. Technological advances such as cloud computing and artificial intelligence (AI) have fundamentally reshaped the relationship between accountants and the firms they work with.
The typical accountancy practice of 10 years ago would have been focused on compiling annual accounts and self-assessment returns, largely reliant on spreadsheets, manual data-entry and boxes of printed receipts brought in by clients. “But technology has completely transformed the profession,” says Paul Lodder, vice-president for accounting product strategy at Dext, a bookkeeping automation specialist. “Today, AI and automation play a key role in handling those basic tasks. Now, accountants are able to focus on providing value where it truly matters for clients – delivering strategic guidance.”
Lodder adds: “This shift also means the skills accountants require are changing too. Soft skills, such as strategic thinking and communication, are vital, with accountants now able to focus on service delivery and relationship building earlier in their careers.”
Real-time insights are a game changer
“The most important change for us has been the move to store all data in the cloud, where it is instantly accessible,” says Ewan Bolt, director and head of digital advisory at accountant Johnston Carmichael. “Not only does this free up clients’ time so they can spend more time actually running their business, it also gives us access to real-time data so we can offer complimentary services.”
“Because we have access to live data, we can produce reports for clients on a more regular basis and then have discussions and help them make business decisions,” adds Lee Coombes, founder of Lee Coombes Accountancy. “In the past, we’d have to wait to the end of the quarter or the year to talk to a business about how they were performing financially. But now, we can anticipate problems and opportunities rather than just react to them.”
Businesses that remain reliant on paper and spreadsheet-based systems are at a significant disadvantage in terms of being able to expand, says Grace Hardy, founder of Hardy Accounting. “The reports you can run using tech are instrumental in growing a business,” she explains. “You can see how much profit and loss you’re making on a month-to-month basis at the click of a button. Without that, you’re not getting the whole picture. For accountants, tech allows us to get a better overview of a business and helps us understand how to improve it.” For example, Hardy says her firm’s ability to categorise one client’s expenditure more accurately enabled the company to significantly increase the amount it was able to claim in R&D tax credits.
Meanwhile, Steph Gemson, founder of accountancy practice TaxGem, says that she has been able to help clients identify opportunities for cost savings, profitability improvements and tax efficiencies by using software that analyses trends and patterns in real-time data. “We recently worked with a manufacturing business that wanted to see the impact invoice financing would have on their cash flow. By integrating their Sage bookkeeping software with our Futrli forecasting tool, we identified periods of low revenue and advised on strategic pricing adjustments and cost control, as well as demonstrating the cash-flow impact of invoice financing. The result was a turnaround in cash flow and 30% growth in net profit over 12 months.”
AI: already playing a major role
While a lot of discussion about AI focuses on its potential future impact, accountants are already using the technology in many aspects of their operations.
“Internally, we’re using AI in the form of our payroll robot, which allows us to process less complex payrolls far more efficiently,” says Bolt. “And when we are preparing annual accounts and tax returns, we're using software that has AI embedded in it, which gives us a more accurate tax position quicker than we could ever get before.”
“We’ve used AI since day one,” adds Hardy. “I'm severely dyslexic, so I use it to help write emails, check over grammar and make sure things make sense. We also use AI to come up with content ideas.”
Coombes, meanwhile, has been part of the beta trial of Sage’s new AI-driven Copilot tool. “We've been given early access to test how it's working, and to see what it can and can't do,” he explains. “We’ve seen major benefits already, particularly this month: the software has been able to identify which clients still have their annual self-assessment return outstanding, and then automatically send out reminder emails.”
An even brighter future?
“I think there’s a sense that clients don’t yet know what might be possible with AI, so there’s an education piece there in terms of possible use cases,” adds Bolt. “From a stock point of view, for example, businesses can use AI to tell them when inventories reach a minimum level and they need to reorder – in fact, AI can even place these orders for them.
“I’m also excited about the potential for e-invoicing, which will enable businesses to send each other invoices that are automatically logged in a central system,” says Bolt. “This would mean that VAT returns could be submitted at the push of a button. There are a number of countries across the world that have already adopted this, and they're seeing massive efficiency benefits.”
Lodder says: “As we look ahead, we may see increasing interest from firms in areas like payments and software optimisation. More firms are focusing on improving efficiency within their own systems, streamlining processes for better outcomes.
“For business owners, it’s important to understand how their accountants are using technology to reduce the margin for error, and how real-time insights can help businesses make more informed decisions. Given the current financial climate, it’s vital they utilise every tool at their disposal to gain a complete view of their financial situation.”
At Sage, we work tirelessly to develop technological solutions that can help accountants unlock their potential and meet clients’ needs with maximum efficiency. Find out how Sage for Accountants can support your practice.
