The bookkeeping profession is undergoing its biggest ever transformation, with new software, apps and integrated data solutions allowing businesses to keep track of compliance, cash flow and payroll as never before.

But according to Angela Fisher CA, director of outsourcing bookkeeping provider ClockworX, Xero’s NZ 2021 Bookkeeper of the Year, many accounting firms are still dragging their heels. Such inflexibility, she believes, could cost them dearly if their rivals are better equipped to embrace the digital future. Hailing from a public practice herself, she instinctively understands the needs of accounting firms.

Here, she reveals five reasons why chartered accountants, who are still hesitating, are taking avoidable risks.

1. No access to data in real time

“Enhanced advisory services and almost ‘on-demand’ service is becoming the norm,” Fisher says, “making ready access to up to date, accurate information essential.”

Access to real time data means being able to provide valuable up to the minute financial statuses and daily reporting. This in turn translates into being able to advise clients proactively based on real time data.

2. Data won't be clean or verified

Verified, accurate - or ‘clean’ data - is essential for providing advisory services and gives more certainty that the numbers can be relied upon.

“Having been a chartered accountant for over two decades, I found time and time again I was trying to provide advisory services with incorrect, inaccurate and untimely data,” she says. “With fast, accurate information that I can trust, I know I have the most up-to-date data in every single meeting.”

3. Squeezing margins

An internally resourced bookkeeping model is inflexible, expensive and loaded with headaches. Including fixed costs that can’t easily be adjusted in times of high or low workload. Plus, now more than ever, practices are feeling the pressures of a tight labour market. Good bookkeepers are hard to find and retain, and practices face the ongoing pressures of juggling resources around sick and annual leave.

Outsourcing builds in the ability to quickly adjust to particular needs – with resource levels adjusting to what is required. “Clients don’t even know that the bookkeeper isn’t sitting in your building. If you use a ‘white label’ service, then the bookkeeping team can become a seamless extension of your firm.”

“With fast, accurate information that I can trust, I know I have the most up-to-date data in every single meeting.”

4. Losing clients who want end-to-end

Technological advances have driven the expectation that bookkeeping and accounting services should be offered from the same firm. While not all accounting firms can make a business case for the expense of bringing a bookkeeper on board, not offering a ‘one-stop-shop’ will put off potential new clients.“This is where outsourcing can be ideal. With a ‘white label’ bookkeeping service, you can move bookkeeping out of a firm’s internal team, while enabling you to offer a quality and reliable service under your own umbrella.”

5. Becoming less competitive

“Failing to keep up with industry expectations carries a real risk of missing out on clients who expect their accounting firm to have the latest and best software to hand,” Fisher warns. Likewise, shying away from advances from AI, that free up time and money will see your services become less competitive.”

Outsourcing bookkeeping, means CA staff can shift their focus to more valuable advisory work.

Find out more:

ClockworX is a CA ANZ member partner that provides outsourced bookkeeping services to SMEs and supports CA ANZ members by enabling the repurposing of staff to higher value services.

To download a free eBook on the key benefits of outsourcing, visit www.clockworx.nz.