Where to from here for bookkeepers?

The year 2016, in some instances, was tough for the Australian bookkeeper. There was a lot of battering from the industry about the role of a bookkeeper in the future, what that looks like and whether these types of jobs will still exist in the years to come.

We heard from association bodies and spokespeople defending the role of a bookkeeper, saying it will never be replaced but it will change as the software technology evolves. Associations say you cannot replace the human element a bookkeeper brings to the life of a small business.

We also saw a lot of conversations about the rise of outsourcing overseas and the impact this has on bookkeepers, small businesses, and the new service it offers an accounting firm.

With all that in mind, 2016 was a defining year for the bookkeeper.

Now bookkeepers have come to understand that, yes, their role is changing and it will look very different in the future. I’ve heard of some bookkeepers moving into the add-on consulting space, business coaching, business admin, back office support and the list goes on.

So where to from here? What are we going to see bookkeepers focusing their time on in 2017?

Now, because bookkeeping businesses vary between sole traders, working for themselves to bookkeeping businesses with multiple employees, we’ll split the view into two from here, keeping in mind that all points could be relevant to you whether you’re a sole trader or an established team.

Sole trading bookkeepers

• Digital tools of automation and workflow

I think this will continue to be a key driver this year, depending on the direction of your business. If you’re expecting to be in business for years to come, find the right tools to help you stay organised with tasks such as sending reminders to your clients about the documentation they need to provide you with.

• Pricing your fees

This is a focus that is not going to change any time soon; if anything, we’re going to hear more about it.

Moving away from hourly pricing will be key for bookkeepers unless you’re charging $120 per hour and the work is flowing through the door (remembering the average is $65 per hour). The faster you work, the less you earn. It’s simple. Don’t focus on how long it took you to complete the work, charge based on the work you completed.

• Add-on solution consulting

I believe this is a natural path for bookkeepers to keep their focus on. While there are too many add-on partners to count on two hands, there has been an emergence of clear leaders among the app groups and niches.

Continue to ask what has worked for them or for their clients. Do not be afraid to experiment with add-ons. I’ve heard that for every gap, there is an app that can fill that void. This means that whatever your accounting software might be lacking, it can be enhanced through the right add-on applications.

• Get a website

If you plan to exist beyond 2017, you need a website. You need to have a digital space in which people can find you, contact you and learn who you are.

This also means that you will need to know what to write, how to say it and who you want to say it to. You’ll need to know your ideal client and the type of client you want to keep working with.

Bookkeeping business with multiple employees, offices

• Digital tools

Digital tools and workflows should already be a key part of your business.

If you are still operating in a physical desktop capacity, you should consider moving your workflows into the cloud to create freedom, remote working environments and better clarity of work to be completed.

This is where you need to be as we get ready for further enhancements in software, especially artificial intelligence.

• Specialise

Understand who your ideal clients are and the industries they’re in. Then work out what combination of software and add-on solutions you can put together that will enable you to streamline your process, keep your clients engaged in the data collection and give them a better view of their business. Find your niche and figure out how you want to target them.

• Diversify

Overheads are harder to cover when you are employing team members, especially if you’re pricing everything per hour. You will need to look at diversifying the services you offer to generate new revenue.

This could mean employing someone with new skills to enable you to offer those services or it could mean identifying key skills available within your core group and creating revenue products that work with your existing client base.

• New revenue

Following the last point, many people seem to think that you need to gain new clients in order to keep growing. This is not always the case. You could have half the number of clients and still earn the same amount of revenue.

You should analyse your existing client base to identify what opportunities there are to engage them on additional services, reporting packs and budgeting.

Consider appointing someone to be your sales or marketing co-ordinator. Where there is focus, results will follow. This could be the difference you need to help drive new and existing business revenue.

• Streamline and systemise

If you have clients on every different version of desktop accounting, cloud accounting and the hybrids, you probably have a headache.

Consider looking at which clients you can run in the cloud and ensure your cloud products all play nicely with your cloud-based tools.

Summary

Bookkeepers need to be able to diversify and prepare their business for change. You are not just a bookkeeper anymore. You have the ability to become the digital mechanic, the networker, the influencer, the difference maker in the lives of your clients’ businesses.

Your role is now more important than ever as you move to become an integral part of your clients’ worlds. To be all these things, there needs to be change.

You may need to disrupt yourselves a little. Yes, that’s scary and yes, that means change. But that is okay. Change is the only constant thing in this world. Support is overwhelming in the bookkeeping industry. You are surrounded by peers from all over the world. Good luck and enjoy your year.

Trent McLaren, head of accounting & strategic partnerships, Practice Ignition