The New Year is almost upon us. It is likely that the pace of change for small business will continue in 2018. Here are three business accounting trends that we believe will affect small businesses in the coming year.
The increase in automated accounting seen in recent years is likely to continue over the next twelve months.
Many of the day-to-day accountancy practices will likely become automated which means that small business will be using their accountants differently; more focused on advisory, strategy and risk management, rather than on processing figures or book keeping, number crunching.
Accountants themselves should be looking to develop these advisory skills, to best service their clients and provide the best support for growing small businesses.
Increased Use of Technology
This is the biggest single issue that will be changing how small businesses organise their accounts. In 2018 small businesses will increasingly move tosuch as Quickbooks, for many of their accounting services.
This will mean outsourcing basic accounting functions and moving to a different model of working. With the move to Making Tax Digital, it will be an imperative for all businesses to make full use of the technology available.
It is important that accounting professionals have the knowledge and training to use these new technologies, as we have here at Steven Glicher & Co. And to be able to ensure that information is presented as simply and easily as possible.
Face to face meetings still be important
When it comes to accountancy support for small business, nothing really beats meeting face-to-face. Whilst could accounting systems like Quickbooks are now vital and allow business owners to automate and there is an important role for face-to-face meetings.
The human approach is still the best way to help make key financial decisions about your business. Business owners quite rightly feel uncomfortable sharing important business information with faceless operatives.
A personal relationship with an accountant will always deliver the best value.
Focus on Cybersecurity
The report, ‘Cyber Resilience: How to protect small firms in the digital economy,’ which was published last year by the Federation of Small Businesses, suggested that small businesses are the most vulnerable when it comes to cybercrime.
The report found that small businesses in the UK are being attacked seven million times per year, which is costing the UK economy an estimated £5.26 billion.
Without taking steps to protect your business, there is a real likelihood your business being a target of online crime in the next year. In this last two year, two thirds (66%) of members of the FSB surveyed, said that they had been victims of online crime, and the majority of those businesses who had been attacked were hit more than once. The average cost to each business almost £3000 in total.
It is important that finance professionals are able to work with businesses to help them audit their risk and remain compliant with financial security guidelines.
If you have any questions about these issues, contact us in the new year. We wish you all a very happy, prosperous and safe 2018.