# It’s time for real time accountancy  Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2016-04-26 Category: FINANCE Category URL: https://financedigest.com/category/finance Meta Title: Revolutionise Your Accounting Firm with Cloud-Based Meta Description: Discover why moving to cloud accounting is crucial for Accountants to provide clients with real-time advice and stay ahead in the industry. URL: https://financedigest.com/its-time-for-real-time-accountancyhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/rob-nixon-panalitix-1736844791782-compressed.jpg) By **Rob Nixon** Rob Nixon The backbone of an Accountancy firm is compliance work and according to a recent survey of 103 UK firms 86% of their revenue was in traditional, historical compliance services. That means that 86% of the revenue was all centred on redundant data. Where is the value to customer if you deliver a report (aka compliance) based on data that is 12-18 months old? As a business owner I don’t want a redundant data Accountant – I want a real time one! The best way to become a real time Accountant is to embrace ‘cloud’ accounting and help your clients with advice based on real time information. If Accountants want to retain their ‘trusted adviser’ status then they need to be much more involved in their client affairs. They need to get closer to their clients and understand their clients’ financial affairs even more than before. In the same survey we asked the 103 firms what percentage of their clients are [currently on a cloud based accounting](https://www.financedigest.com/coffee-current-accounts-and-the-commoditisation-conundrum.html "Coffee, current accounts and the commoditisation conundrum") platform such as Quickbooks online, Xero and others. The average was 11% and what was super exciting was the focus for the [next 12 months](https://www.financedigest.com/prince-harry-and-meghan-to-visit-britain-next-month.html "Prince Harry and Meghan to visit Britain next month") where the average goal was to move 35% of clients to cloud accounting. Clearly this a strategy the UK profession is embracing. And so they should. Having your business clients on cloud accounting is proven to be a more efficient system for both client and Accountant alike. Having financial intimacy with a client includes which accounting software they use and clients are no longer going to a retail store to buy a boxed product for their accounting software. The vast [majority are buying](https://www.financedigest.com/bnp-paribas-buys-majority-stake-in-dutch-firm-dynamic-credit-group.html "BNP Paribas buys majority stake in Dutch firm Dynamic Credit Group") their software over the Internet – not in a box. Are your clients coming to you for advice which software application they should use or are they just using one recommended by their friends? Surely the Accountant who is ‘doing their books’ should be involved in that decision. The movement to cloud based applications is one that no one can stop. Social change says that people want the information on their [device 24/7 and technology](https://www.financedigest.com/the-medical-device-technologies-market-to-stick-around-based-on-organic-expansion.html "The Medical Device Technologies Market to stick around based on organic expansion") companies are building applications to suit that appetite. Globally, there is a massive push for the [small business](https://www.financedigest.com/top-benefits-of-invoice-discounting-for-small-businesses.html "Top Benefits of Invoice Discounting for Small Businesses") market to transition from their desktop accounting software to an alternative cloud based accounting application. Based on public information we believe that the following [markets have already made this switch to a cloud based accounting applications:](https://www.financedigest.com/service-lifecycle-management-applications-market-to-grow-at-a-cagr-of-6-9.html "Service Lifecycle Management Applications Market to grow at a CAGR of 6.9%") - 35% of New Zealand small businesses - 20% of Australian small businesses - 10% of UK small businesses - 5% of USA small businesses - 2% of Canadian small businesses [Modern day](https://www.financedigest.com/who-is-the-modern-day-cfo.html "WHO IS THE MODERN DAY CFO?") business owners are demanding real time information not only to make critical strategic decisions, but also to stay competitive in their respective markets. Similarly this applies for Accountants who also need to adapt and evolve their service offerings, or else risk a significant decline in revenues and profit over the [coming years](https://www.financedigest.com/veterinary-tables-market-rise-to-meet-large-demand-in-coming-years-fact-mr-study.html "Veterinary Tables Market Rise To Meet Large Demand In Coming Years, Fact.MR Study"). When a client is on a cloud system the ‘time taken’ at the Accountants end can be up to 60% less than through other desktop or hard drive systems. What are you going to do with all that capacity? An example of such industry forces are evident in the trends of New Zealand based accounting firms which have [recorded dramatic falls in profit](https://www.financedigest.com/bp-makes-record-profit-in-2022-slows-shift-from-oil.html "BP makes record profit in 2022, slows shift from oil") compared to CPI. Profits have fallen below the 5% year on year growth projection as a result of efficiencies gained through cloud technologies and the lack of re-invention by the Accounting profession. Practically, the profit decline is a result of Accountants failing to re-invent their [service offerings and interactions with clients once they switch to the cloud](https://www.financedigest.com/uk-to-examine-cloud-services-dominated-by-amazon-microsoft-and-google.html "UK to examine cloud services dominated by Amazon, Microsoft and Google"). The following are [key trends](https://www.financedigest.com/refurbished-medical-imaging-equipment-market-comprehensive-study-with-key-trends-major-drivers-and-challenges-2018-2026.html "Refurbished Medical Imaging Equipment Market: Comprehensive Study with Key Trends, Major Drivers and Challenges 2018-2026") impacting accounting firms globally: - As accounting [systems provide real time information](https://www.financedigest.com/call-for-digitization-to-drive-the-healthcare-information-systems-market.html "Call for Digitization to drive the Healthcare Information Systems Market"), Accountants are not required to provide as much data integrity services. - Accountants are no longer required to re-key financial information from one source to another and consequently spend up to 60% less time on preparing annual accounts. - Clients are aware of such cost savings and their willingness to pay fees for less non-value added services is reducing at a rapid rate. - This creates a market for the new savvy, nimble, [marketing orientated Accountant who can promote and deliver value added advisory services](https://www.financedigest.com/the-hair-transplant-services-market-to-witness-innovation-oriented-sustenance.html "The Hair Transplant Services Market to witness innovation-oriented sustenance") to a marketplace that really does value the service. - Regulators are [improving the flow of financial information in terms of lodgement interfaces whereby cloud based accounting applications will be able to send financial data](https://www.financedigest.com/how-finance-firms-can-unify-two-data-approaches-to-improve-both-compliance-and-security.html "How finance firms can unify two data approaches to improve both compliance and security") directly from the cloud, bypassing the traditional accountant - This results in the annual compliance ‘bread and butter’ services becoming commoditised and Accountants facing severe fee pressures from clients and prospects. Accountants who do not update their [business models](https://www.financedigest.com/cfos-its-time-to-own-the-business-model.html "CFOs: It’s time to own the business model") and who don’t offer new value added services face a diminishing client and fee base. About the author: **Rob Nixon** is the [global leader](https://www.financedigest.com/over-100-global-leaders-pledge-to-end-deforestation-by-2030.html "Over 100 global leaders pledge to end deforestation by 2030") in helping accounting firms grow revenue, profit and cashflow. He has been advising Accountants around the world since 1994. He is the author of _‘Accounting Practices Don’t Add Up’_ and his most recent book _‘Remaining Relevant’_. You can follow via his personal blog – [www.robnixon.com](http://www.robnixon.com/). His innovation, PANALITIX, helps forward thinking accounting firms, shift from compliance to high value services by providing a combination of software, marketing and digital coaching ( [www.panalitix.com](http://www.panalitix.com)) Over 750 firms use the software globally. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---