AI, automation use may add nearly $5bn to accounting industry

Insights from the most recent MYOB's Accounting Industry Monitor suggested that local firms are utilising automation to redefine the practitioner’s mandate. 

By integrating these innovations, businesses are successfully navigating workforce deficits and cultivating more profound, strategic partnerships with their clients. 

Functioning as an annual benchmark for the profession, MYOB's Accounting Industry Monitor draws on insights from more than 300 practice leaders and decision makers across Australia. 

This comprehensive assessment explores the sector’s navigation of critical shifts, from the integration of emerging technologies to the evolution of service delivery and shifting client requirements.

Speaking to Accountants Daily, Dean Chadwick, the chief customer officer at MYOB, was pressed on what the biggest barriers preventing small and local accounting practices from adopting AI and automation were. 

“This year’s Accounting Industry Monitor shows key challenges around adoption of AI and automation centre on the confidence to apply it in a practical, secure and useful way,” Chadwick said. 

“Nearly half of the accounting professionals surveyed (49 per cent) said the biggest barrier is understanding how to use AI and automation to improve practice efficiency.”

“Security is the next concern for 44 per cent of respondents, while more than a third (39 per cent) say they are struggling to keep pace with the new technology.”

“Thirty-seven per cent said more staff training is needed to help teams build confidence and use these tools well.”

The MYOB Accounting Industry Monitor found that the profession remains gripped by a substantial talent deficit. Of the practice leaders surveyed, 76 per cent reported difficulties in securing appropriate candidates for vacant positions, an increase from the 71 per cent recorded in the previous year. 

Though several elements are intensifying the recruitment deficit, 42 per cent of participants indicated that utilising technology to facilitate a shift toward advisory-led services could serve as a potent strategy for bridging the workforce divide. 

“The availability of modern, intelligent technology platforms, coupled with tools like AI, allows practices to reduce the manual burden on their teams and redeploy their people to meet the growing demand for advisory services,” Chadwick said. 

“With a shift to focus on higher-impact client engagement and greater strategic thinking, the different type of work that practices can unlock could further enhance the appeal to the next generation of accountants.” 

Beyond its role in attracting and keeping top-tier talent, the data showed that the profession views technological integration as vital for diverse operational enhancements. 

An overwhelming majority of participants (98 per cent) affirmed that the implementation of automation, refined workflows, and technologically-enabled communication has directly bolstered their practice's revenue or overall profitability. 

Across the board, quality work also seemed to be improving, with significant advantages of AI reported by accounting leaders including fast turnaround (55 per cent), reduced errors (53 per cent) and increased capacity (48 per cent). 

“Businesses are now demanding deeper insights, faster responses and real-time access to financial information, as part of a wider range of services,” Chadwick said. 

“This shift from compliance-led work to a greater focus on strategic advisory services puts Australian businesses in a stronger position, better equipped to navigate a range of challenges with the back of tech-enabled expertise and a deeper understanding of their needs.”