One global software company is concerned that the take-up of cloud technology by SMEs is faster than the take-up of new technologies by accountants, putting accountants on the back foot with client retention.
Accountants risk clients ‘voting with their feet’
Speaking to Accountants Daily, managing director of Xero Australia Trent Innes said SMEs are increasingly willing to shift their business to partners who are open to working with similar and compatible platforms and technologies.
“I honestly believe that, as well, small businesses are voting with their feet. So if accountants don’t support them on the platform they want to use, they will shift,” Mr Innes said.
Accountants’ client bases have traditionally been built on long-term relationships and location-based services, but technology has significantly disrupted this dynamic, Mr Innes added.
In fact, he believes a “100 per cent digital accounting practice” is no longer a futuristic concept.
“With better bank feeds, more connected apps and a rich ecosystem of partners, the 100 per cent digital practice is not only achievable, but many of them already exist. Thanks to a slew of innovation happening all around us, there is no reason to use archaic systems for any aspect of practice management,” Mr Innes said.
“Any business unwilling to be a part of its connected world will likely find themselves isolated from insight, and stuck in the past."