Three opportunities to watch
Important changes are set to reshape the future of accounting, says Shaye Thyer FCA. Brought to you by Intuit QuickBooks.
Accounting businesses must continually adapt to business, technological and legislative changes. This can present challenges, but Shaye Thyer also sees three opportunities.
1. Open banking
A data-sharing regime that gives consumers the power to securely share their banking data with accredited third parties, open banking is a game-changer.
“For small businesses and for their advisers alike, there’ll be a greater breadth of knowledge and choice for the banking consumer,” says Thyer.
“Genuinely real time data means we can support small businesses in new ways. Previously, providing advice to our business clients has been by learning from the past. Open banking means we can apply analysis around trends and see what we can influence in the future.”
The shift to open banking will transform how small businesses manage their cash flow. Intuit QuickBooks was the first Australian software provider to attain the status from the ACCC as an accredited data recipient of CDR data at the ‘unrestricted level’, meaning it has worked with key open banking stakeholders from day one.
“If we're able to see in real time how clients are sticking to their plan, the ability for us to be real accountability partners is significantly amplified,” says Thyer. “Businesses need to know when something has come out of left field, and they need to be able to make decisions by the day.”
One of the most exciting developments in accounting is e-invoicing, says Thyer, who believes it is likely to be government mandated in future.
“The most important benefit of e-invoicing is significantly reduced processing costs. “According to the ATO, each traditional invoice costs around $30 to process. By comparison, an e-invoice costs around $10. All told, that’s a billion-dollar effect on the economy.”
Picture: Shaye Thyer FCA.
“Each traditional invoice costs around $30 to process. By comparison, an e-invoice costs around $10. That’s a billion-dollar effect on the economy.”
Alongside reduced administration and enhanced cybersecurity, a key benefit of e-invoicing is faster processing leading to faster payment. It will help advisers, small to medium businesses, and the economy, says Thyer.
“There’s plenty of data showing that small businesses are at the mercy of big business. Their access to capital and payment terms put pressure on small businesses. With e-invoicing, small businesses can get paid faster by all customers, and relieve cash flow pressure.”
3. Leadership representation
Gender inequality needs solving across the economy, and the changing nature of work presents an opportunity.
“Staffing shortages means accounting is undergoing a reset. There is a significant opportunity to leverage shifts that came during the pandemic, such as requiring hybrid and remote working.”
Currently, the gender imbalance is most acute in senior positions. According to December 2020 research from the Australian Financial Review, women only make up 23% of the partners in Australia’s largest firms.
“Attracting and retaining women is a massive opportunity that offers the huge commercial benefit of helping accounting firms with acute capacity issues.”
Find out more:
To hear more insights from Shaye Thyer, check out the CA ANZ Member Webinar on understanding open banking and e-invoicing at intuit.swoogo.com/caanzwebinarfuturefit. To connect with us directly, go to quickbooks.intuit.com/au/partners/ca-anz/.