Stepping into the digital world

The world in which we live is becoming more and more digital with every passing day, and it’s clear that digital accounting is starting to gain momentum. However, the revolution is still ahead and not behind us.

According to our recent Digital or Die report, almost one quarter of advisors (23%) say they are ‘ahead of the curve on accounting technology’, and a further 61% believe the tipping point is here. It’s no longer a matter of if, but when, digital will take over and the roles of accountants will begin to shift and expand. And while this – like any change – may seem daunting on some level, advisors wholeheartedly agree that it will be for the better.

The benefits of online accounting are already undeniable. By speeding up basic bookkeeping and reducing numerous drafts, accounting technology frees up a lot of human resource and this saved time can be invested in more enterprising, imaginative work.

The digital difference

Our report shows that working online versus traditional accounting is expected to save advisors 117.5 hours per year. That’s enough time for a two-week holiday in the Bahamas. A quarter predict these time savings would be even more, reaching over 200 hours, or 25 days. With more time comes more opportunity for accountants to revolutionise the way they work. We found that they would look to build a better work-life balance (42%), offer deeper insights and advice to clients (21%), and explore new business and revenue opportunities (17%).

Looking at other benefits that may come from the switch, accountants would expect to see reduced operational costs (35%), time saved (33%), shorter workdays (32%), better data security (25%) and more reliability (24%).

While currently these are merely predictions, when you look at what’s happening with practices that have already made the switch to digital, there seems to be a reassuring correlation between theory and practice. A recent survey highlighted some tangible results, finding that revenue growth at digital UK practices was four times greater than the industry average; with YoY revenue growth of 12% at digital practices, compared to the industry average of just 3%.

So, for advisors who are hoping to grow their revenue, the switch to modern accounting tools seems like a no-brainer.

To explore our findings in detail and discover further insights, download the report here.

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Source: Xero Blog

XeroDamon Anderson