How Counting on U is transforming accounting
The origin of the Counting on U Project stems from the CEO of the IPA, Andrew Conway – who said “The biggest issue...
READ MOREPresident’s report: turning disruption into opportunity
In the previous issue, I wrote of the use of technology by the ATO and its increasing impact on our members. However, there are many more examples of digital disruption to the way we work and live.
The Bstar 2015 Accountants Research Report cites the top five strategic threats facing the accounting profession:
1. Digital disruption and technology
2. Government regulation
3. Changing client loyalties
4. Shifting demographics
5. Increased competition.
These factors have a number of interrelationships. A change of government regulations, standardised reviews and reporting, the continual push for improved standards and the expansion of different technologies lead to numerous opportunities for accountants. The challenge is to realise what these opportunities are and how to capitalise on them. For many, it will take a change of business model to optimise the opportunity.
For example, robo-advice is on a steep incline, with no signs of slowing down. For those who have not come across the terminology, a robo-adviser is an online wealth management service that provides automated, algorithm-based portfolio management advice without the use (or limited use) of human financial planners.
The growing uptake of this technology is illustrated by Forbes research showing that robo-advisers directly managed $19 billion worldwide as at December 2014; this is forecast to grow to $250 billion in the next five years. While $200 billion will be in the US, there is little doubt that we will see more of this trend in the Australian market.
As our feature on page 38 points out, humans will not be able to compete with the sophisticated algorithms, low fees and 24/7 access that robo-advisers offer. But that’s not to say accountants should throw in the towel – instead, they should consider how to adapt and add more technology to their offerings. This may include investing in technology or partnering with a technology-based organisation.
In order to assist IPA members to identify opportunities, leverage technology and add advisory services to their practice, the IPA is delivering Transitioning your Practice workshops. Members wishing to know more should email IPA executive general manager, public affairs, Vicki Stylianou at vicki.stylianou@publicaccountants.org.au
Wendy Leegel FIPA
