Why bookkeepers must finely tune their tech skills
No matter the level of investment, more tech doesn’t always result in increased success for your business. Feeling the pressure to splash the cash on the latest technology is understandable; it can often feel like your organization is falling behind if your competitors are spending big.
In truth, those who grasp the art of investing strategically will be the real winners. Take the accounting space, for example; according to Accountancy Age’s annual 50+50 report, the top 100 firms invested £23 million in tech in 2022, a decrease of 15% from 2021. That’s not to say those businesses are reluctant to spend, but it does indicate a more selective approach, perhaps to ensure effectiveness.
Crucially, as a bookkeeper, what do you really need and how will it bring out the best in your level of service? These are the questions which must be asked before anything else. Thanks to cloud computing, artificial intelligence, and automation, bookkeepers can complete duties much quicker and efficiently. But these tools must also be fully understood by those using them and, with time freed up, allow for more strategic work to be completed.
With a finely tuned tech setup, bookkeepers can provide detailed insights which set them apart from competitors and catch the eye of new clients.
Bringing out your best
Across many years, bookkeepers have been offering exceptional levels of service. The wave of new technology in the industry does not change that either. However it does mean that bookkeepers have a growing selection of tools at their disposal to elevate their insights and differentiate themselves from their competitors.
While a bookkeeper’s responsibilities have often been viewed as transactional, this is no longer the case for those who embrace assets such as artificial intelligence or automation. The latter can save a great deal of time; with bookkeepers no longer required to complete tedious manual tasks by hand, they can be more strategic in the information they deliver and focus on other elements such as improving and expanding their overall service. Tech opens bookkeepers open to aspects of their service which simply wasn’t possible before.
However, your chosen use of technology must provide the insights your client actually needs. Bookkeepers must be constantly reviewing these tools and ensuring they are delivering accurately and correctly.
The growing importance of data
Alongside the rise of new technologies, bookkeepers are naturally accruing huge swathes of data as a result. Armed with a new strategic eye, this could prove extremely valuable to those in bookkeeping positions.
For example, perhaps a client would like to know where their organization is losing money. Their spending habits can be quickly reviewed and analyzed thanks to AI, allowing a bookkeeper to pinpoint pain points and offer a far more detailed, real-time overview of the situation. It’s these new levels of service that could set you apart and help retain many more clients, as well as appeal to new ones. Without the rapidly acquired data, that technology provides, this would not be possible.
Data can also make bookkeepers, and ultimately their clients, more agile, too. With so much economic uncertainty gripping businesses at the moment, bookkeepers must be one step ahead, responding to changes and understanding how they may affect those in their roster in real-time. A bookkeeper who reacts purposefully will be vastly appreciated by organizations desperate for guidance.
While bookkeepers cannot predict the future, data can provide the next best thing and support clients in navigating uncertain waters in the present day.
Why bookkeepers must finely tune their tech skills
For bookkeepers, acquiring the necessary tech skills can sometimes feel like an uphill struggle. It’s often at a huge expense in both monetary and time aspects, and even kicking off the process can feel intimidating.
But the value it can bring to your position is well worth it if it is offering the insights you actually need. This is critical when expecting tech to support in becoming more strategic and upping the level of service. Once finely tuned and consistently reviewed, bookkeepers can make themselves indispensable.
Paul Lodder
Paul Lodder joined Dext with 20+ years in practice at Sagars Accountants, where he was a partner heading up the cloud accounting offering. ACCA qualified in 2003, Paul led the firm’s MTD and digital strategy and gave support on digitalization to accountants and bookkeepers across the country. This was alongside providing solutions to client’s challenges and supporting them in achieving their goals across accountancy, taxation and business advisory services.
Paul is recognized as a leading expert on the implementation and benefits of digitalization. He was featured in Xero's The Pacesetters book (published in 2018) on reshaping the industry.
At Dext, Paul leads global strategy, offering accounting knowledge and insights. He works closely with the product team to ensure that we continue to meet the needs of our users.