Services provided by accountants can help small business owners manage cash flow better, a study commission by Intuit Software has reported, but the role of accounting is changing as more technologies such as artificial intelligence (AI) are embedded into accounting software packages.
The study, conducted by Chris Brauer, director of innovation in the Institute of Management Studies (IMS) at Goldsmiths, University of London, Symmetry Research and the Association of Chartered Certified Accountants (ACCA), noted that there is a substantial opportunity for both SMEs and accountants to drive meaningful economic impact.
Based on a survey of 4,000 small and mid-sized businesses, the study reported that 71% of the businesses polled agree that professional accounting services improve cash flow management, which makes both current and future business decision-making run more smoothly. In addition, 73.1% said that using professional accounting services has strengthened their financial reporting, and this alone has offered increasing opportunities to get bank loans or government grants.
Around 80% of SME leaders who have used an accountant said it has had either a moderate, significant or transformational effect on their financial literacy. Accountants can also serve an integral role as strategic financial advisors, counselling on business planning, tax compliance and financial management. Among the challenges facing the accounting profession is that the trajectory AI is taking may well remove much of the work they need to do in terms of how small business owners manage their finances.
Marianna Tressel, executive vice-president at Intuit, believes the way AI changes business is just getting started, adding: “We’re just at the beginning, at the first few innings of what will be possible with AI and how people use AI.”
According to Tressel, AI is an accelerant in everybody’s work: “We were talking to a lot of small businesses about how they use AI for all sorts of elements of their work. It’s an accelerant, but also it’s a disruptor.”
Tressel believes conversational AI powered by a custom large model changes human computer interaction and this is something Intuit has begun doing, with a custom LLM based on open source technology, which, she said, can handle queries extremely cost effectively. This potentially has an impact on the role of an accountant.
Aaron Patrick, head of accounts at the UK-based cloud accountancy firm Boffix, said: “If we’re really honest, accountants and bookkeepers are starting to become less relevant.” However, for Patrick, there is now an opportunity for accountants and book keepers to become business advisers and start helping clients by showing value to their clients.
“Niche expertise is becoming a game changer for accountants. By specialising in specific sectors [such as] e-commerce, we can offer tailored advice that directly impacts a client’s success. Coupled with proactive communication, we’re not just checking boxes anymore – we’re building long-term relationships where we actively help SMEs make strategic decisions, thrive, and grow.”
For Intuit customers, this opportunity is made possible through its $12bn acquisition of MailChimp in 2021. The developer of QuickBooks used the acquisition as an opportunity to re-engineer its applications as a new platform.
In October, Intuit launched Intuit Accountant Suite, an AI-native platform, which the company claims provides accounting firms with the tools they need to scale and manage their clients, firms and teams, all in one place.
Discussing how the technology that is built into the new Intuit platform changes the role of an accountant, Patrick said: “We now have an opportunity to understand why sales has gone up or why expenses has gone down.”
According to Patrick, the new Intuit platform provides access to data silos: “As accountants, we’re going to have the opportunity not only to be able to tell the story based on the numbers, but understand what’s happened with the CRM system, such as assess how a company’s marketing is going.”
This post is exclusively published on eduexpertisehub.com
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