SMEs must invest in IT, automation, and AI amid economic headwinds, study shows

By Puja Sharma

Over the next year, accountants expect to spend an average of $15,800 on technology improvements and upgrades according to the Intuit QuickBooks Accountant Technology Survey. Accountants throughout the US are using this investment to level up by becoming faster, sharper, and more comprehensive in their support to clients. Evolving technology is also helping to solve the industry’s biggest hiring challenges.

Technology is transforming accountants’ relationships with their clients—82% of accountants say technology is creating more meaningful client interactions. Accountants are embracing the power of technology—48% plan to invest in automation tools and artificial intelligence over the next 12 months.  Fewer young professionals are entering the industry. But 85% of accountants believe technology could help turn this around by making way for more engaging work.

Despite economic uncertainty and constantly fluctuating market factors, accountants’ business outlook for 2023 is positive, with 82% anticipating growth. This bullish view can, in part, be attributed to tech implementations, with 41% citing their increased revenue as a result of tech improvements.

Almost all (86%) agree tech will play a significant role in the growth and expansion of their practices this year, with 48% planning to invest in AI and automation tools. Accountants expect to spend an average of $15,800 on tech upgrades in 2023.

Almost all (94%) cite a dwindling pipeline of young accountants entering the industry as one of the biggest challenges when it comes to hiring and retaining talent. But 85% believe tech could help turn this around by making way for more engaging work.

Client needs are increasing

As small businesses face mounting pressure in the current economy, their needs are increasing. More than 3 in 5 accountants report that their clients have needed more support with financial management (67%), filing taxes (62%), managing staffing costs (62%), and financial forecasting (65%) over the past two years.

Stepping up to be better business partners

With inflation still at a high point, small businesses are recognizing a need for more holistic support from accountants to ensure their success. Clients’ increasing needs are creating opportunities for accountants to be strategic business partners. Eight in 10 (81%) accountants agree that technology is freeing up time to take on more of an advisory role with their clients. A majority (80%) are seeing this evolving dynamic increase face-to-face time with clients as well.

Real-time insights are more important than ever

Real-time financial insights are the advantage small businesses need for a more robust and immediate understanding of business performance. According to (93%) of accountants, not only are real-time financial insights important to business success but also survival-critical. Eight out of 10 (84%) accountants agree that companies using technology to get real-time financial insights are more likely to survive a recession.

Wave of the future: automation & AI

Accountants recognize the impact technology can have on the growth of their firms and are prioritising tech investments to move their businesses forward. Nearly half expect to invest in and adopt automation tools (48%), artificial intelligence (AI) (48%), and blockchain technology (47%) over the next 12 months.

Despite planned investments, ensuring accuracy is still a top priority for accountants. Nearly a third (31%) say this is the biggest concern with technology.

Combatting hiring challenges

The accounting landscape is evolving and expanding in new ways. Amid these changes, job satisfaction remains high. Nearly 7 in 10 accountants (69%) report being satisfied with their jobs overall, and 82% would recommend a career in accounting to young professionals.

Key findings:

• Nearly 90% of respondents agree that technology will play a significant role in the growth and expansion of their practices in the next year
• Accountants expect to spend an average of $15,800 on technology improvements and upgrades in 2023
• Nearly half expect to invest in and adopt automation tools (48%), AI (48%), and blockchain technology (47%) to maximise efficiencies
• However, almost a third (31%) said a top concern for adopting technology like AI is trusting that the solution can ensure accuracy.
• 86% of respondents agree that technology will play a significant role in the growth and expansion of their practices in the next year