Why invest in technology and automation?
With technology, the largest accounting firms have traditionally had a distinct advantage. Their large budgets allow them to build sophisticated resources, which allows them to reap enormous benefits from economies of scale.
Firms that invested the most in technology last year increased sales by more than 10%, compared to a UK accounting industry average of 3%. Further, accounting firms that spent the most on technology expanded at a pace that was 330% faster than the UK average.
Is there a digital divide in the accounting profession?
The response is emphatically yes, with big-budget companies reaping the benefits of automated systems that push reporting and boost client engagement.
Technology spending in the private sector is at an all-time high. According to Accountancy Age, the top 100 UK companies spent more than £73 million on new technology, just in 2020. That’s over £730,000 spent on new systems per firm!
Can all accountants afford to invest in technology and automation?
The question should be: Can they afford not to? There is significant investment in software and related services that help out the more technologically sophisticated accountants in the UK. However, those that don’t take the plunge will be left behind with dwindling clients and an eventual uphill battle to keep pace with the requirements of the simplest of filings needing to be online.
Is it possible to eliminate this disparity?
Yes, absolutely! In the United Kingdom, Xero is now the most used accounting software. This, along with investing in many other cloud and technology solutions, has been our focus since 2014 when we first started to appreciate the benefits of software as a service. Dext also provides a significant helping hand when it comes to automating bookkeeping and tracking errors in the accounts. Old and new clients have also been reaping the benefits of this approach throughout the pandemic crisis.
Progress and efficiencies are all possible thanks to cloud computing. We’re happy to demonstrate if you are unsure about taking the plunge. We can show you the light (and improved information about your business too)